Leggett & Platt (LEG) AI Stock Analysis

• Market Cap: $1.65B
• Dividend Yield: 1.84%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.31
• 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): 0.29
• Shares Outstanding: 135,436,280
• 10 Day Avg. Volume: 1,068,324
• 30 Day Avg. Volume: 1,192,239
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 5.88
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 5.80
• 1Y Price Target: $12.00
• Price Target Upside: -2.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $13.00 ▲(5.18% Upside)

The score is driven primarily by mixed financial performance: solid profitability and improving cash flow are tempered by declining revenue and incomplete balance-sheet visibility. Valuation is a notable positive due to the low P/E, while technicals and the earnings-call outlook are neutral, reflecting modest trend support but continued sales headwinds despite restructuring and debt reduction progress.

Positive Factors

Strong free cash flow generation

Sustained free cash flow growth and a high FCF-to-net-income ratio indicate durable cash conversion capacity. This strengthens the firm’s ability to fund capex, complete restructuring, reduce debt, support dividends or targeted M&A without relying on external financing, enhancing long-term financial flexibility.

Restructuring delivering recurring EBIT benefit

A restructuring that generates a recurring $60–$70M EBIT uplift materially improves structural profitability. Removing cost and footprint inefficiencies lowers the break-even point, improves margin resilience during soft end markets, and provides a sustainable earnings tailwind beyond short-term cycle moves.

Meaningful debt reduction and improved leverage

Material year-to-date debt paydown and lower net leverage reduce interest expense risk and improve covenant headroom. Stronger balance sheet increases strategic optionality—enabling investments, bolt-on M&A, or weathering demand shocks—supporting multi-quarter financial stability.

Negative Factors

Ongoing revenue decline

Persistently declining top line undermines scale benefits and puts sustained pressure on margins and utilization. Revenue contraction across core end markets can force continued restructuring, reduce pricing leverage, and limit reinvestment capacity, posing a durable headwind to growth and profitability.

Structural weakness in specialty foam and adjustable beds

Dependence on retailer merchandising and channel shifts creates structural volume volatility in niche products. Persistent customer-driven demand changes can compress volumes and revenue for these higher-margin product lines, limiting the sustainability of segment recovery and complicating long-term planning.

Pricing pressure in Furniture, Flooring & Textiles

Sustained competitive discounting in key segments erodes gross margins and reduces pricing power. If structural, this requires ongoing cost reductions or product differentiation to protect profitability, constraining margin expansion even if volumes stabilize and limiting durable margin recovery.

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 generates revenue primarily through the sale of its engineered components and products across its diverse business segments. The company's Residential Products segment is a significant revenue driver, providing essential components for the bedding and furniture industries, including innerspring units, mattress foundations, and adjustable bases. The Industrial Products segment contributes to earnings by supplying various components used in manufacturing and automotive applications. Additionally, Leggett & Platt benefits from long-term partnerships with major retailers and OEMs, ensuring a steady demand for its products. The company also seeks growth through strategic acquisitions, which enhance its capabilities and expand its market reach, further bolstering its revenue streams.

Leggett & Platt Financial Statement Overview

Summary

Financials are mixed: profitability is relatively healthy (TTM gross margin 23.71%, net margin 7.15%) and cash generation is solid (TTM free cash flow up 13.38% and ~79.91% of net income). Offsetting this, revenue is declining, and balance-sheet signals are mixed (historical leverage noted; some key ratios like equity ratio are unavailable).

Income Statement

Leggett & Platt's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 23.71% and a net profit margin of 7.15%, which are relatively healthy. However, the revenue growth rate is negative, indicating a decline in sales. The EBIT and EBITDA margins are moderate, suggesting stable operational efficiency despite the revenue drop.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio in the past, but the TTM data shows improvement with a ratio of 0.0, indicating no debt. Return on equity is strong at 39.15% in the TTM period, reflecting effective use of equity. However, the equity ratio is not available, limiting a full assessment of asset financing.

Cash Flow

Cash flow analysis shows positive trends with a 13.38% growth in free cash flow in the TTM period. The free cash flow to net income ratio is strong at 79.91%, indicating efficient cash generation relative to profits. However, the operating cash flow to net income ratio is not available, which limits a comprehensive cash flow assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.17B	4.38B	4.73B	5.15B	5.07B	4.28B
Gross Profit	748.30M	749.10M	853.80M	976.80M	1.04B	904.10M
EBITDA	496.10M	-287.30M	94.90M	668.90M	785.90M	600.00M
Net Income	224.40M	-511.50M	-136.80M	309.80M	402.40M	253.00M
Balance Sheet
Total Assets	3.52B	3.66B	4.63B	5.19B	5.31B	4.75B
Cash, Cash Equivalents and Short-Term Investments	460.70M	350.20M	365.50M	316.50M	361.70M	348.90M
Total Debt	1.66B	2.05B	2.20B	2.29B	2.29B	2.06B
Total Liabilities	2.55B	2.97B	3.30B	3.54B	3.66B	3.36B
Stockholders Equity	971.80M	689.40M	1.33B	1.64B	1.65B	1.39B
Cash Flow
Free Cash Flow	279.60M	224.10M	383.40M	341.10M	164.70M	536.40M
Operating Cash Flow	339.00M	305.70M	497.20M	441.40M	271.30M	602.60M
Investing Cash Flow	270.30M	-36.60M	-91.30M	-181.20M	-226.20M	-49.00M
Financing Cash Flow	-430.10M	-270.00M	-358.80M	-286.20M	-32.80M	-461.70M

Leggett & Platt Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEG, the sentiment is Positive. The current price of 12.36 is above the 20-day moving average (MA) of 12.15, above the 50-day MA of 11.40, and above the 200-day MA of 9.69, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 42.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEG.

Leggett & Platt Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	77 Outperform	$1.54B	17.18	8.82%	2.39%	1.78%	-25.36%
TILE	72 Outperform	$1.88B	16.80	20.20%	0.21%	5.11%	34.02%
ETD	70 Outperform	$588.06M	13.44	9.21%	7.86%	-4.26%	―
LEG	63 Neutral	$1.65B	7.59	26.20%	1.84%	-6.03%	―
MBC	63 Neutral	$1.58B	20.39	6.19%	―	1.77%	-44.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	61 Neutral	$1.40B	-54.03	-1.95%	4.16%	4.34%	-141.36%

Leggett & Platt Corporate Events

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.

Leggett & Platt Q3 2025 Financial Results Overview

Leggett & Platt reported its third-quarter 2025 financial results, indicating a 6% decrease in sales compared to the same period in 2024, with net trade sales at $1.0 billion. Despite the sales decline, the company increased its operating cash flow by $30 million and strengthened its balance sheet by reducing debt by $296 million. The quarter also saw the successful sale of its Aerospace business, which contributed to a significant EBIT increase. The company reaffirmed its full-year sales and adjusted EPS guidance, highlighting its strategic focus on core operations and long-term shareholder value.

The most recent analyst rating on (LEG) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Leggett & Platt stock, see the LEG Stock Forecast page.