Leggett & Platt (LEG) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: 1.89%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.19
• Revenue Growth: -6.05%
• 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: 135,350,970
• 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: 1.98
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.83
• Enterprise Value/Ebitda: 5.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $11.50 ▲(28.35% Upside)

Leggett & Platt's overall stock score reflects a stable financial position with strong profitability and improving cash flow. The stock's undervaluation and positive technical indicators are significant strengths. However, declining sales and ongoing challenges in key segments temper the outlook, suggesting cautious optimism.

Positive Factors

Debt Reduction

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

Restructuring Success

Successful restructuring improves operational efficiency and profitability, positioning the company for sustained financial health and competitive advantage.

Improved Cash Flow

Enhanced cash flow generation supports investment in growth opportunities and provides a buffer against economic uncertainties, ensuring long-term operational resilience.

Negative Factors

Overall Sales Decline

Declining sales indicate challenges in demand and market conditions, potentially affecting revenue streams and profitability if not addressed.

Challenges in Key Segments

Weakness in key segments like adjustable beds and specialty foam suggests potential loss of market share and revenue, impacting long-term growth prospects.

Pricing Pressures

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

Leggett & Platt Business Overview & Revenue Model

Company Description

Leggett & Platt (LEG) is a diversified manufacturer of engineered components and products that serve a variety of industries, including residential furniture, automotive, and bedding. Founded in 1883 and headquartered in Carthage, Missouri, the company operates through multiple segments, including Bedding Products, Specialized Products, and Furniture Products. Leggett & Platt's core offerings include mattress innersprings, adjustable beds, upholstered furniture, and various components for the automotive industry, showcasing its commitment to innovation and quality across its extensive product lines.

How the Company Makes Money

Leggett & Platt generates revenue through the sale of its diverse range of products across multiple sectors. The company has several key revenue streams, primarily from its Bedding Products segment, which includes mattress components like innersprings and foundations, as well as adjustable beds. The Furniture Products segment contributes significantly as well, providing components for upholstered furniture and other household items. Additionally, the Specialized Products segment caters to industries such as automotive, aerospace, and industrial markets. Leggett & Platt benefits from long-term relationships with major retailers and manufacturers, which provide stability and recurring revenue. Strategic partnerships and acquisitions also play a role in enhancing its product offerings and expanding market reach, thereby contributing to its overall earnings.

Leggett & Platt Financial Statement Overview

Summary

Leggett & Platt faces challenges with declining revenues and high leverage, but recent improvements in profitability and cash flow management provide some optimism. The company needs to focus on revenue growth and debt management to enhance financial stability and performance in the future.

Income Statement

Leggett & Platt's income statement shows a declining revenue trend with a negative revenue growth rate in recent periods. The gross profit margin has slightly decreased over time, indicating some pressure on cost management. However, the company has managed to maintain a positive net profit margin in the TTM period, recovering from a negative margin in the previous year. The EBIT and EBITDA margins have also shown improvement in the TTM period, suggesting better operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a risk in terms of financial stability. The return on equity has improved in the TTM period, but the equity ratio remains low, highlighting a reliance on debt financing. The company's ability to manage its debt levels effectively will be crucial for future stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which is concerning. However, the operating cash flow to net income ratio remains healthy, indicating that the company is generating sufficient cash from operations relative to its net income. The free cash flow to net income ratio is also strong, suggesting effective cash management despite recent challenges.

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	740.10M	749.10M	853.80M	976.80M	1.04B	894.50M
EBITDA	495.10M	-288.60M	93.20M	663.80M	778.10M	590.70M
Net Income	224.40M	-511.50M	-136.80M	309.80M	402.40M	253.00M
Balance Sheet
Total Assets	6.80M	3.66B	4.63B	5.19B	5.31B	4.75B
Cash, Cash Equivalents and Short-Term Investments	6.80M	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	972.40M	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	267.70M	-36.60M	-91.30M	-181.20M	-226.20M	-49.00M
Financing Cash Flow	-415.10M	-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 8.98, below the 50-day MA of 9.25, and below the 200-day MA of 9.09, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 74.64 is Negative, neither overbought nor oversold. The STOCH value of 78.98 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
TILE	―	$1.61B	17.00	18.63%	0.18%	6.26%	44.74%
ETD	―	$717.33M	14.01	10.69%	6.81%	-4.89%	-19.26%
MBC	―	$1.65B	18.03	7.15%	―	4.05%	-47.49%
LEG	―	$1.43B	6.58	26.19%	1.89%	-6.05%	―
LZB	―	$1.37B	15.23	9.09%	2.65%	2.18%	-22.35%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	―	$1.16B	-67.92	-1.18%	4.39%	5.37%	-127.27%

Leggett & Platt Corporate Events

Leggett & Platt Reports Q3 2025 Financial Results

Leggett & Platt, a diversified manufacturer known for its engineered components and products in the home and automotive sectors, has reported its third-quarter results for 2025. The company, which has been in operation for 142 years, is a leading supplier of bedding components, automotive seat systems, and other specialized products.

Leggett & Platt’s Mixed Earnings Call: Debt Down, Sales Struggle

Leggett & Platt’s recent earnings call painted a mixed picture for investors. While the company has made commendable strides in debt reduction and restructuring, challenges persist in certain segments, leading to a decline in overall sales. The Bedding segment shows signs of stabilization, and there are promising improvements in cash flow. However, the sales decline and ongoing market pressures suggest a cautious outlook for the future.

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.

Leggett & Platt Sells Aerospace Products Group

On August 29, 2025, Leggett & Platt completed the sale of its Aerospace Products Group to funds managed by Tinicum Incorporated, receiving approximately $250 million in after-tax proceeds. This divestiture is part of Leggett’s strategic focus on aligning with long-term goals, and the proceeds will be used to reduce debt and improve the company’s financial position. The Aerospace Products Group, which generated $190 million in sales in 2024, supplies complex tube and duct assemblies for aircraft and space vehicles. Following the sale, Leggett revised its 2025 financial guidance, adjusting sales and earnings expectations.

The most recent analyst rating on (LEG) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Leggett & Platt stock, see the LEG Stock Forecast page.

Leggett & Platt Reports Q2 2025 Financial Results

Leggett & Platt is a diversified manufacturer specializing in engineered components and products for homes and automobiles, with a significant presence in the bedding, automotive, and furniture industries.

Leggett & Platt’s Earnings Call: A Balanced Outlook

Leggett & Platt’s recent earnings call painted a picture of cautious optimism. The company reported notable achievements in earnings growth and debt reduction, driven by restructuring progress and metal margin expansion. However, these positives were tempered by significant sales declines across major segments and challenges posed by the tariff landscape. The overall sentiment reflects a balance between optimism for future growth and caution due to current market challenges.

Leggett & Platt Reports Q2 2025 Sales Decline

Leggett & Platt reported a 6% decrease in second-quarter sales for 2025 compared to the same period in 2024, with sales totaling $1.1 billion. Despite the decline, the company improved its profitability, with EPS rising to $0.38 and adjusted EPS to $0.30, a slight increase from the previous year. The company reduced its debt by $143 million, strengthening its balance sheet, and amended its credit facility to extend maturity to 2030. Leggett & Platt remains on track to sell its Aerospace business and maintains its full-year sales and adjusted EPS guidance, despite macroeconomic challenges.

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.