Leggett & Platt (LEG) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: 1.84%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.39
• Revenue Growth: -6.03%
• EPS Growth: N/A
• Country: US
• Employees: 17,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.22
• Shares Outstanding: 135,877,600
• 10 Day Avg. Volume: 1,234,920
• 30 Day Avg. Volume: 1,742,805
• PEG Ratio: -0.04
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 5.42
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: 5.02
• 1Y Price Target: $12.00
• Price Target Upside: 17.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.1
• Revenue Forecast (FY): $3.86B

• Rating: 57 Neutral
• Price Target: $10.50 ▲(2.84% Upside)
• Action: Reiterated Date: 02/17/26
• Date: Action: Reiterated 02/17/26

The score is driven primarily by weaker financial performance (multi-year revenue declines, earnings volatility, and still-elevated leverage) partially offset by resilient cash flow and progress on deleveraging. The earnings outlook is balanced: restructuring and margin focus support profitability, but guidance signals continued demand headwinds. Valuation is a relative positive due to a low P/E, while technicals are broadly neutral with limited near-term momentum.

Positive Factors

Cash Generation

Consistently positive operating and free cash flow, highlighted by $338M OCF in 2025, provides durable internal funding. This strengthens the company’s ability to pay down debt, fund modest buybacks or small M&A, and invest in operations even if revenues remain cyclical.

Deleveraging Progress

Material debt reduction and a clear target (2.0x) signal sustained balance-sheet repair. Moving from 3.8x to 2.4x materially lowers financial risk, increases borrowing flexibility and reduces interest exposure, which supports longer-term operational and strategic optionality.

Portfolio Simplification & Diversification

Portfolio pruning and targeted product/geography moves diversify revenue and reduce reliance on cyclical Aerospace/residential pockets. New product lines and a Vietnam facility broaden addressable markets and may sustain margins via higher-value engineered offerings over time.

Negative Factors

Revenue Decline

Three consecutive years of revenue contraction and double-digit quarterly declines reflect persistent demand erosion and lost scale. Sustained top-line weakness limits margin recovery, constrains reinvestment capacity, and increases reliance on one-time cash items for near-term results.

Elevated Leverage Remains

Despite improvement, legacy high leverage and reduced equity cushions keep the balance sheet sensitive to earnings swings. This constrains capital allocation flexibility, raises refinancing and covenant risks in downturns, and limits the company’s margin for error on operational setbacks.

Residential End-Market Weakness

With roughly half of sales tied to weak residential demand, prolonged mattress and furniture softness is a structural headwind. Management’s guidance assumes no near-term recovery, meaning limited organic upside and ongoing pressure on volumes, pricing power and long-term growth prospects.

Leggett & Platt Business Overview & Revenue Model

Company Description

Leggett & Platt, Incorporated designs, manufactures, and markets engineered components and products worldwide. It operates through three segments: Bedding Products; Specialized Products; and Furniture, Flooring & Textile Products. The company offers steel rods, drawn wires, foam chemicals and additives, innersprings, specialty foams, private label finished mattresses, mattress foundations, wire forms for mattress foundations, adjustable beds, industrial sewing and quilting machines, and mattress packaging and glue drying equipment, as well as machines to produce innersprings for industrial users of steel rods and wires, manufacturers of finished bedding, big box and e-commerce retailers, bedding brands and mattress retailers, department stores, and home improvement centers. It also provides mechanical and pneumatic lumbar support and massage systems for automotive seating; seat suspension systems, motors and actuators, and cables; titanium, nickel, and stainless-steel tubing, formed tubes, tube assemblies, and flexible joint components for fluid conveyance systems; and engineered hydraulic cylinders to automobile OEMs and Tier 1 suppliers, aerospace OEMs and suppliers, and mobile equipment OEMs. In addition, the company offers steel mechanisms and motion hardware for reclining chairs, sofas, sleeper sofas and lift chairs; springs and seat suspensions; components and private label finished goods for soft seating; and bases, columns, back rests, casters, and frames, as well as control devices for chairs. Further, it offers carpet cushion and hard surface flooring underlayment, structural fabrics, and geo components to manufacturers of upholstered and office furniture, flooring retailers and distributors, contractors, landscapers, road construction companies, retailers, government agencies, and mattress and furniture producers, as well as manufacturers of packaging, filtration, and draperies. The company was founded in 1883 and is based in Carthage, Missouri.

How the Company Makes Money

Leggett & Platt makes money primarily by manufacturing and selling components, materials, and selected finished products to business customers (e.g., bedding and furniture manufacturers, and other OEMs), generating revenue when these goods are shipped and delivered under customer contracts or purchase orders. Key revenue streams include: (1) Bedding-related sales: components and systems used in mattresses and foundations (such as springs/innersprings and other mattress support and comfort components), sold to mattress producers and bedding brands; (2) Furniture, seating, and related components: mechanical and structural components used in sofas, recliners, chairs, and other seating, sold to furniture and seating manufacturers; and (3) Other engineered products: specialized components and products that serve additional niches beyond bedding and furniture, where the company leverages its engineering and manufacturing capabilities to supply parts incorporated into customers’ end products. Profitability is influenced by a mix of factors including manufacturing efficiency and utilization, raw-material input costs (and the company’s ability to recover those costs through pricing), product mix (higher- vs. lower-margin components), and demand levels in end markets like housing-related durable goods (bedding and furniture). Material parts of the company’s earnings are typically tied to long-standing supply relationships with large OEM customers and retail-channel brands, where Leggett & Platt acts as a scalable, high-volume component supplier; specific partnership details not publicly specified here are null.

Leggett & Platt Financial Statement Overview

Summary

Financials are mixed: multi-year revenue contraction and volatile profitability (losses in 2023–2024 before a 2025 rebound) weigh on quality of earnings, and leverage remains a key risk despite improvement. Offsetting this, cash generation is comparatively strong with positive operating and free cash flow through the downturn and a strong 2025 rebound, supporting debt reduction capacity.

Income Statement

Revenue has contracted for three consecutive years (2023–2025), signaling a weakening top-line backdrop. Profitability is volatile: the company swung from solid profits in 2021–2022 to losses in 2023–2024, then returned to positive earnings in 2025, indicating some recovery but not yet a stable trend. Margins also deteriorated materially from 2021–2022 levels, and the 2024 results show especially weak profitability, which weighs on the overall quality of earnings.

Balance Sheet

Leverage remains elevated, with debt still large relative to equity (2024 debt-to-equity near 3x) despite improvement in 2025 as debt declined and equity rebuilt. Equity levels dropped significantly versus earlier years, limiting balance-sheet flexibility and increasing sensitivity to earnings downturns. While total debt has been trending down since 2022 and the business remains asset-backed, the capital structure is still a key risk factor.

Cash Flow

Cash generation is a relative strength: operating cash flow and free cash flow stayed positive through the downturn, and free cash flow rebounded strongly in 2025 versus 2024. Free cash flow has generally tracked well, providing capacity for debt reduction and shareholder returns even when accounting earnings were weak. The main weakness is volatility year-to-year (notably the 2024 drop), suggesting cash flows can be cyclical alongside end-market demand.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.06B	4.38B	4.73B	5.15B	5.07B
Gross Profit	727.90M	749.10M	853.80M	976.80M	1.04B
EBITDA	478.40M	-287.30M	94.90M	668.90M	785.90M
Net Income	235.40M	-511.50M	-136.80M	309.80M	402.40M
Balance Sheet
Total Assets	3.54B	3.66B	4.63B	5.19B	5.31B
Cash, Cash Equivalents and Short-Term Investments	587.40M	350.20M	365.50M	316.50M	361.70M
Total Debt	1.66B	2.05B	2.20B	2.29B	2.29B
Total Liabilities	2.51B	2.97B	3.30B	3.54B	3.66B
Stockholders Equity	1.02B	689.40M	1.33B	1.64B	1.65B
Cash Flow
Free Cash Flow	281.00M	224.10M	383.40M	341.10M	164.70M
Operating Cash Flow	338.20M	305.70M	497.20M	441.40M	271.30M
Investing Cash Flow	293.30M	-36.60M	-91.30M	-181.20M	-226.20M
Financing Cash Flow	-413.20M	-270.00M	-358.80M	-286.20M	-32.80M

Leggett & Platt Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.21
• 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 LEG, the sentiment is Negative. The current price of 10.21 is below the 20-day moving average (MA) of 11.05, below the 50-day MA of 11.69, and above the 200-day MA of 10.06, indicating a neutral trend. The MACD of -0.44 indicates Positive momentum. The RSI at 32.39 is Neutral, neither overbought nor oversold. The STOCH value of 9.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEG.

Leggett & Platt Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TILE	74 Outperform	$1.57B	14.41	15.93%	0.21%	5.11%	34.02%
ETD	70 Outperform	$568.47M	12.45	9.20%	7.86%	-4.26%	―
LZB	65 Neutral	$1.35B	18.08	8.12%	2.39%	1.78%	-25.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	59 Neutral	$1.23B	11.21	-1.98%	4.16%	4.34%	-141.36%
LEG	57 Neutral	$1.39B	6.47	26.15%	1.84%	-6.03%	―
MBC	47 Neutral	$1.05B	53.13	1.98%	―	1.77%	-44.11%

Leggett & Platt Corporate Events

Leggett & Platt Updates 2026 Executive Compensation Framework

On February 19, 2026, Leggett & Platt’s board committee approved modest 2026 base salary increases for its president and CEO Karl G. Glassman and other named executives, while confirming their long‑term incentive award multiples and slightly raising the LTI multiple and KOIP target percentage for General Counsel Jennifer Davis. The committee also set 2026 cash incentive targets under the Key Officers Incentive Plan and detailed award formulas tying payouts for corporate and profit center executives to EBITDA, cash flow or free cash flow thresholds and caps, with strict adjustment rules for acquisitions, divestitures, non‑core items, and compliance performance.

The committee adopted a 2026 Performance Stock Unit framework that splits PSU performance equally between three‑year cumulative EBITDA and return on invested capital, then applies a relative total shareholder return multiplier capped at 200% and constrained when absolute TSR is negative. On the same date, it approved grants of performance stock units and time‑based restricted stock units to current named executives effective February 26, 2026, reinforcing a compensation design that links executive pay more tightly to long‑term profitability, capital efficiency, safety and shareholder returns while defining clear vesting, retirement, and change‑in‑control provisions.

The most recent analyst rating on (LEG) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Leggett & Platt stock, see the LEG Stock Forecast page.

Leggett & Platt Issues 2026 Outlook Amid Revenue Decline

Leggett & Platt reported fourth-quarter 2025 sales of $939 million, down 11% year on year, and full-year 2025 revenue of $4.05 billion, a 7% decline from 2024, reflecting divestitures, softer residential demand, merchandising changes at key bedding customers, and supply chain disruptions in automotive and hydraulic cylinders. Despite lower volume and the loss of earnings from its divested Aerospace business, the company modestly improved fourth-quarter adjusted EPS to $0.22, held full-year adjusted EPS flat at $1.05, increased 2025 operating cash flow to $338 million, substantially completed its 2024 restructuring program with better-than-expected EBIT benefits and lower costs, reduced net debt leverage to 2.4x, and issued 2026 guidance calling for lower sales but a tighter EPS range as it shifts focus toward growth and capital returns once residential markets recover.

The most recent analyst rating on (LEG) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Leggett & Platt stock, see the LEG Stock Forecast page.

Leggett & Platt Implements Executive Retention Agreements for Stability

On December 27, 2025, Leggett & Platt’s board and Human Resources and Compensation Committee approved retention agreements for a select group of key executives, excluding President and CEO Karl G. Glassman, in a move aimed at securing leadership continuity and supporting the company’s ongoing performance. The agreements grant retention payments in 2025 to EVP & CFO Benjamin M. Burns, Bedding Products President J. Tyson Hagale, Specialized Products and Furniture, Flooring & Textile Products President R. Samuel Smith Jr., and EVP & General Counsel Jennifer J. Davis—ranging from about 103% to 128.8% of base salary—subject to continued employment through December 23, 2026, with stringent clawback provisions tied to voluntary departures, terminations for cause, and changes in control, as well as customary confidentiality and non-competition covenants, underscoring the company’s focus on stability during a sensitive period for senior management.

The most recent analyst rating on (LEG) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Leggett & Platt stock, see the LEG Stock Forecast page.