Leggett & Platt (LEG) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 1.77%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.20
• 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: 1,317,239
• 30 Day Avg. Volume: 1,590,928
• 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: 2.35
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: 5.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $13.00 ▲(45.09% Upside)

Leggett & Platt's overall stock score reflects a stable financial position with strong profitability and improving cash flow. The technical analysis indicates bullish momentum, and the valuation suggests the stock is undervalued. However, the mixed results from the earnings call, with ongoing sales declines and market challenges, temper the outlook.

Positive Factors

Debt Reduction

Significant debt reduction strengthens the balance sheet, enhancing financial stability and reducing interest expenses, which supports long-term growth.

Restructuring Success

Successful restructuring improves operational efficiency, leading to sustainable cost savings and enhanced profitability over the long term.

Cash Flow Improvement

Improved cash flow indicates effective working capital management, providing the company with greater flexibility for investments and debt servicing.

Negative Factors

Sales Decline

A decline in sales reflects ongoing demand challenges, which could impact revenue and profit margins if not addressed, affecting long-term growth prospects.

Specialized Products Segment Decline

Declines in specialized products indicate potential weaknesses in market competitiveness, which could hinder segment recovery and overall business performance.

Pricing Pressures

Pricing pressures from competitors can erode margins and profitability, challenging the company's ability to maintain its market position and financial health.

Leggett & Platt Business Overview & Revenue Model

Company Description

Leggett & Platt, Incorporated (LEG) is a diversified manufacturer that designs and produces a wide range of engineered components and products for various industries. Founded in 1883 and headquartered in Carthage, Missouri, the company operates through several business segments, including Residential Products, Industrial Products, and Specialized Products. Core offerings include bedding components such as innersprings and mattress frames, furniture components, and adjustable bed bases, as well as various products for the automotive and industrial sectors. Leggett & Platt's extensive product portfolio allows it to serve a wide array of customers, ranging from major retailers to original equipment manufacturers (OEMs).

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

Leggett & Platt shows a stable financial position with strong profitability metrics and improving cash flow. The company faces challenges with declining revenue but maintains operational efficiency and effective equity use. The absence of debt in the TTM period is a positive sign, though historical leverage was high.

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: 8.96
• 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 LEG, the sentiment is Positive. The current price of 8.96 is below the 20-day moving average (MA) of 10.25, below the 50-day MA of 9.51, and below the 200-day MA of 9.05, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 64.43 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	$1.58B	17.71	8.82%	2.33%	1.78%	-25.36%
TILE	72 Outperform	$1.59B	14.18	20.20%	0.22%	5.11%	34.02%
LEG	68 Neutral	$1.21B	5.55	26.20%	1.77%	-6.03%	―
ETD	66 Neutral	$614.02M	13.07	9.96%	7.18%	-4.61%	-25.66%
MBC	63 Neutral	$1.40B	18.24	6.19%	―	1.77%	-44.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	60 Neutral	$1.08B	―	-1.18%	4.55%	5.37%	-127.27%

Leggett & Platt Corporate Events

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.