LEGRAND (LR) AI Stock Analysis

• Market Cap: €32.34B
• Dividend Yield: 1.76%
• Average Volume (3M): 608.75K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 1.00
• Revenue Growth: 12.62%
• EPS Growth: 17.18%
• Country: FR
• Employees: 33,959
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.11
• Shares Outstanding: 262,245,730
• 10 Day Avg. Volume: 595,988
• 30 Day Avg. Volume: 608,755
• PEG Ratio: 7.62
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 2.85
• P/FCF Ratio: 19.19
• 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: €154.57
• Price Target Upside: 23.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: €142.00 ▲(13.83% Upside)

Legrand's strong financial performance is the most significant factor, supported by robust profitability and efficient cash flow management. However, the technical analysis indicates potential bearish momentum, and the high P/E ratio suggests the stock may be overvalued, which tempers the overall score.

Positive Factors

Revenue Growth

Legrand's strong revenue growth indicates expanding market presence and demand for its products, supporting long-term business sustainability.

Cash Flow Management

Efficient cash flow management with consistent free cash flow supports Legrand's ability to fund operations and future investments.

Profitability

High profit margins reflect strong cost management and operational efficiency, enhancing Legrand's competitive position in the industry.

Negative Factors

Increased Leverage

Rising debt levels require cautious management to maintain financial stability and could limit future financial flexibility.

Slower Revenue Growth

The slower revenue growth rate compared to previous years may indicate challenges in maintaining market expansion and demand.

Debt Management

While manageable, the debt-to-equity ratio suggests a need for prudent debt management to avoid potential financial strain.

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

Legrand demonstrates strong financial performance with consistent revenue growth, robust profitability, and efficient cash flow management. The company maintains a solid balance sheet with effective use of equity, though increased leverage requires cautious debt management.

Income Statement

Legrand's income statement shows strong profitability with a consistent increase in revenue over the years. The TTM data indicates a gross profit margin of 51.28% and a net profit margin of 13.21%, reflecting efficient cost management and strong bottom-line performance. The revenue growth rate of 1.94% in the TTM period suggests steady growth, albeit at a slower pace compared to previous years. EBIT and EBITDA margins remain robust, indicating operational efficiency.

Balance Sheet

The balance sheet demonstrates a solid financial position with a manageable debt-to-equity ratio of 0.86 in the TTM period. The equity ratio is healthy, and the return on equity of 16.84% indicates effective use of shareholder funds. However, the increase in total debt over the years suggests a need for cautious debt management to maintain financial stability.

Cash Flow

Legrand's cash flow statement highlights strong cash generation capabilities, with a free cash flow growth rate of 7.42% in the TTM period. The operating cash flow to net income ratio of 0.56 and a free cash flow to net income ratio of 0.85 reflect efficient cash conversion. The company has consistently maintained positive free cash flow, supporting its ability to fund operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.39B	8.65B	8.42B	8.34B	6.99B	6.10B
Gross Profit	4.80B	4.47B	4.40B	4.15B	3.56B	3.18B
EBITDA	2.26B	2.11B	2.04B	1.88B	1.66B	1.39B
Net Income	1.23B	1.17B	1.15B	999.50M	904.50M	681.20M
Balance Sheet
Total Assets	16.89B	16.07B	14.84B	14.42B	14.03B	12.91B
Cash, Cash Equivalents and Short-Term Investments	2.99B	2.08B	2.82B	2.40B	2.79B	2.79B
Total Debt	6.11B	5.09B	4.82B	4.67B	5.31B	5.39B
Total Liabilities	9.69B	8.53B	8.11B	7.77B	8.31B	8.00B
Stockholders Equity	7.17B	7.53B	6.72B	6.64B	5.72B	4.90B
Cash Flow
Free Cash Flow	1.41B	1.28B	1.58B	1.03B	942.20M	1.13B
Operating Cash Flow	1.65B	1.52B	1.84B	1.24B	1.11B	1.16B
Investing Cash Flow	-710.70M	-1.74B	-413.30M	-463.50M	-466.90M	-850.40M
Financing Cash Flow	242.30M	-535.80M	-927.00M	-1.23B	-687.10M	823.70M

LEGRAND Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 124.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:LR, the sentiment is Negative. The current price of 124.75 is below the 20-day moving average (MA) of 128.08, below the 50-day MA of 135.99, and above the 200-day MA of 120.43, indicating a neutral trend. The MACD of -2.68 indicates Positive momentum. The RSI at 35.45 is Neutral, neither overbought nor oversold. The STOCH value of 17.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:LR.

LEGRAND Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FGR	76 Outperform	€11.83B	11.85	14.39%	3.85%	7.71%	-2.82%
NEX	73 Outperform	€5.26B	11.00	25.83%	2.10%	12.65%	81.77%
LR	70 Outperform	€32.34B	26.45	17.50%	1.76%	12.62%	17.18%
SPIE	66 Neutral	€8.23B	39.99	10.66%	2.17%	10.87%	-10.35%
RXL	65 Neutral	€9.49B	38.61	4.63%	3.66%	2.16%	-64.02%
SGO	65 Neutral	€42.46B	15.29	11.84%	2.50%	1.09%	-0.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%