LEGRAND (LR) AI Stock Analysis

• Market Cap: €40.35B
• Dividend Yield: 1.73%
• Average Volume (3M): 608.75K
• Price to Earnings (P/E): 32.5
• Beta (1Y): 1.01
• Revenue Growth: 12.62%
• EPS Growth: 17.18%
• Country: FR
• Employees: 33,959
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.49
• Shares Outstanding: 262,245,730
• 10 Day Avg. Volume: 595,988
• 30 Day Avg. Volume: 608,755
• PEG Ratio: 3.98
• Price to Book (P/B): 4.57
• Price to Sales (P/S): 3.52
• P/FCF Ratio: 24.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €151.50
• Price Target Upside: -1.59% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 5.75
• Revenue Forecast (FY): €10.48B

• Rating: 67 Neutral
• Price Target: €168.00 ▲(9.13% Upside)
• Action: Downgraded Date: 02/26/26
• Date: Action: Downgraded 02/26/26

The score is primarily supported by durable profitability and historically strong cash generation, but it is held back by the recent debt increase and deteriorating free-cash-flow momentum. Technicals show a strong uptrend, yet overbought indicators raise near-term risk, and the elevated P/E with a modest yield further caps the score.

Positive Factors

Durable Profitability

Legrand's sustained operating and net margins indicate durable earnings power across cycles. Consistent margin structure supports reinvestment, steady free cash flow conversion and resilience to input cost swings, enabling longer-term investment in product and geographic expansion.

Strong Cash Generation

High historical free cash flow conversion versus net income shows structural cash generation capacity. This underpins funding for capex, dividends and M&A without heavy reliance on markets, providing flexibility to pursue strategic investments over the medium term.

Diversified Product & Geographic Reach

A broad product portfolio across residential, commercial and industrial markets and multi‑region exposure reduces single-market cyclicality. Multi-channel distribution to projects and wholesalers stabilizes revenue streams and supports long-term market share retention.

Negative Factors

Rising Leverage in 2025

A material increase in total debt weakens financial flexibility and raises interest expense risk. If sustained, higher leverage can constrain capital allocation choices, limit scope for opportunistic M&A or shareholder returns, and lengthen recovery time after shocks.

Deteriorating Free Cash Flow Momentum

Sharp negative FCF growth in recent years signals that incremental cash generation is weakening despite historically high conversion. Persisting FCF declines reduce internal funding for growth and deleveraging, increasing reliance on external financing and raising execution risk.

Uneven Revenue Growth Profile

An unusually high 2025 growth rate versus prior years introduces uncertainty about sustainable topline momentum. Variable revenue trends make forecasting and capacity planning harder, increasing the risk that growth may revert, affecting margins and investment returns.

LEGRAND Business Overview & Revenue Model

Company Description

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The company offers MCBs, RCDs, and din rail equipment, including residual current circuit breakers, RCBOs, add-on modules and accessories, surge protective devices, other control and signaling devices, and time and light-sensitive switches, as well as dimmers, relays, transformers, power supplies, and accessories; ACBs, MCCBs, head equipment, and busbar systems; enclosures and accessories; equipment and accessories; home network, home automation, and hotel equipment; wiring accessories; weatherproof wiring accessories and other installation equipment; lighting management, emergency lighting, access control, and safety equipment; UPS and LCS products, cable management systems, equipment, and accessories; and mosaic wiring accessories. Its products are used in hotels, offices, data centers, industrial sites, shops, hospitals, schools, and universities, as well as residential, commercial, and industrial buildings. Legrand SA was founded in 1865 and is headquartered in Limoges, France.

How the Company Makes Money

LEGRAND generates revenue primarily through the sale of its diverse product portfolio, which includes electrical wiring accessories, power distribution solutions, and network connectivity products. The company benefits from a multi-channel distribution strategy, selling directly to large projects and through a network of distributors and wholesalers. Key revenue streams come from both domestic and international markets, with a strong presence in Europe, North America, and Asia. Additionally, LEGRAND engages in strategic partnerships with various stakeholders in the construction and electrical sectors, enabling them to tap into emerging markets and innovate their product offerings. Factors such as increasing demand for energy-efficient solutions, smart home technologies, and digital infrastructure further contribute to LEGRAND's earnings.

LEGRAND Financial Statement Overview

Summary

Strong and steady profitability (net margins ~12%–14%, operating margins ~18%–20%) and historically solid cash generation (FCF ~83%–98% of net income in 2020–2024). Offsetting factors are the material rise in total debt in 2025 and weakening/free-falling FCF growth in 2024–2025, which reduces near-term quality and flexibility.

Income Statement

Legrand shows solid, steady profitability with net margins holding around ~12%–14% from 2020–2025 and operating profitability consistently near ~18%–20%. Revenue has generally trended upward (notably strong growth in 2021–2022), but the latest annual growth rate appears unusually high in 2025 versus prior years, which adds some uncertainty to the near-term growth profile. Overall, earnings power looks durable, though growth has been uneven year to year.

Balance Sheet

The balance sheet is healthy with equity building over time and moderate leverage in most years (debt-to-equity improved from above 1.0 in 2020 to ~0.68–0.72 in 2023–2024). However, total debt rises materially in 2025 versus 2024, which is a key watch item and could reduce flexibility if sustained. Returns on equity were strong in 2021–2024 (~15%–17%), supporting overall balance sheet quality, but some 2025 leverage/return metrics are not available in the provided data.

Cash Flow

Cash generation is consistently solid: free cash flow is strong and typically covers a large portion of earnings (about ~83%–98% of net income in 2020–2024). Operating cash flow has been steady, but cash conversion can fluctuate, and free cash flow growth turns negative in 2024 and is sharply negative in 2025, suggesting softer incremental cash generation despite higher profits. Overall cash flow quality is good, with near-term momentum the main concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.48B	8.65B	8.42B	8.34B	6.99B
Gross Profit	4.82B	4.47B	4.40B	4.15B	3.56B
EBITDA	2.43B	2.11B	2.04B	1.88B	1.66B
Net Income	1.24B	1.17B	1.15B	999.50M	904.50M
Balance Sheet
Total Assets	17.59B	16.07B	14.84B	14.42B	14.03B
Cash, Cash Equivalents and Short-Term Investments	2.38B	2.08B	2.82B	2.40B	2.79B
Total Debt	6.60B	5.09B	4.82B	4.67B	5.31B
Total Liabilities	10.26B	8.53B	8.11B	7.77B	8.31B
Stockholders Equity	7.29B	7.53B	6.72B	6.64B	5.72B
Cash Flow
Free Cash Flow	1.36B	1.28B	1.58B	1.03B	942.20M
Operating Cash Flow	1.58B	1.52B	1.84B	1.24B	1.11B
Investing Cash Flow	-1.61B	-1.74B	-413.30M	-463.50M	-466.90M
Financing Cash Flow	393.70M	-535.80M	-927.00M	-1.23B	-687.10M

LEGRAND Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:LR, the sentiment is Positive. The current price of 153.95 is above the 20-day moving average (MA) of 146.04, above the 50-day MA of 134.73, and above the 200-day MA of 129.46, indicating a bullish trend. The MACD of 6.05 indicates Negative momentum. The RSI at 78.22 is Negative, neither overbought nor oversold. The STOCH value of 77.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:LR.

LEGRAND Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEX	73 Outperform	€5.26B	14.90	25.83%	2.08%	12.65%	81.77%
RXL	70 Neutral	€10.75B	18.35	4.63%	3.61%	2.16%	-64.02%
FGR	69 Neutral	€13.87B	13.89	14.39%	3.87%	7.71%	-2.82%
LR	67 Neutral	€40.35B	32.49	17.50%	1.73%	12.62%	17.18%
SPIE	66 Neutral	€8.92B	43.35	10.66%	2.14%	10.87%	-10.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%