Leggett & Platt (LEG)
NYSE:LEG
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Leggett & Platt
(NYSE:LEG)
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Rating:54Neutral
Price Target:
$10.00
▼(-16.87% Downside)
Action:Reiterated
Date:05/23/26
Overall score reflects a mixed setup: improving profitability/cash flow and clear deleveraging progress are the primary positives, but they are tempered by ongoing revenue contraction, cautious/declining sales outlook, and weak technical trend signals. Valuation is roughly middle-of-the-road with a modest dividend yield.
Positive Factors
Improved cash generation
TTM operating and free cash flow are positive and improved versus prior year, with operating cash flow of $338M in 2025. Durable cash generation supports deleveraging, funds required CapEx and selective buybacks/acquisitions, and provides ongoing liquidity to absorb cyclical weakness.
Negative Factors
Multi-year revenue contraction
Revenue has been declining for multiple years (2025 sales $4.05B, down 7% YoY; reported TTM revenue weakness), which erodes scale, increases per‑unit fixed costs and limits sustainable margin expansion. Persistent top‑line decline constrains long‑term EBITDA and cash‑flow upside absent structural demand recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
TTM operating and free cash flow are positive and improved versus prior year, with operating cash flow of $338M in 2025. Durable cash generation supports deleveraging, funds required CapEx and selective buybacks/acquisitions, and provides ongoing liquidity to absorb cyclical weakness.
Read all positive factors
Leggett & Platt Key Performance Indicators (KPIs)
Leggett & Platt (LEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.36B
Dividend Yield1.84%
Average Volume (3M)4.06M
Price to Earnings (P/E)17.2
Beta (1Y)1.59
Revenue Growth-8.33%
EPS GrowthN/A
CountryUS
Employees17,700
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)1.62
Shares Outstanding136,432,450
10 Day Avg. Volume2,785,263
30 Day Avg. Volume4,063,573
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.49
Price to Sales (P/S)0.38
P/FCF Ratio5.42
Enterprise Value/Market Cap1.83
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit3.50
Enterprise Value/Ebitda7.23
Forecast
1Y Price Target
$11.50Price Target Upside-4.41% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.87
Revenue Forecast (FY)$3.83B
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 offe...
How the Company Makes Money
Leggett & Platt makes money primarily by manufacturing and selling engineered components and finished/semi-finished products to business customers, with revenue recognized largely from product sales (rather than subscriptions or consumer licensing...
Leggett & Platt Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong execution on restructuring, meaningful deleveraging, improved cash flow and operational progress across products and geographies are offset by continued revenue declines, persistent weakness in residential end-markets (particularly Bedding), supply-chain and segment-specific headwinds, and conservative 2026 top-line guidance. Management emphasizes margin and balance-sheet priorities while acknowledging demand uncertainty.Positive Updates
Restructuring Delivered Greater-Than-Expected Benefit
Completed 2024–2025 restructuring with ~ $63 million of EBIT benefit flowing in 2025 and an expected ~$5 million in 2026 for a ~$70 million EBIT run-rate; total restructuring cost ~ $80 million (about half noncash).
Negative Updates
Significant Near-Term Revenue Declines
Fourth quarter sales were $939 million, down 11% versus Q4 2024; full-year 2025 sales were $4.05 billion, down 7% year-over-year, driven by weak residential demand, customer-specific declines and divestitures.
Read all updates
Q4-2025 Updates
Positive
Negative
Restructuring Delivered Greater-Than-Expected Benefit
Completed 2024–2025 restructuring with ~ $63 million of EBIT benefit flowing in 2025 and an expected ~$5 million in 2026 for a ~$70 million EBIT run-rate; total restructuring cost ~ $80 million (about half noncash).
Read all positive updates
Company Guidance
Leggett & Platt guided 2026 sales of $3.8–$4.0 billion (down 1%–6% vs. 2025, with ~3% of the decline from divestitures), with volume expected flat to down low-single-digits (Bedding down low single digits, Specialized down low single digits excluding Aerospace, FF&T flat) and inflation/currency providing a low-single-digit sales tailwind. GAAP EPS is guided to $0.92–$1.38 (including ~$0.02–$0.11 of restructuring costs, ~$0.05–$0.08 of Somnigroup-related costs and ~$0.11–$0.25 of real-estate gains); full-year adjusted EPS is expected to be $1.00–$1.20 (midpoint driven by operational efficiency, favorable mix and full-year metal-margin expansion, partially offset by lower volume). Adjusted EBIT margin is projected at 6.3%–7.0%; cash from operations $225–$275 million (no working-capital benefit assumed); CapEx $100–$115 million; and the company expects normal seasonality with weaker Q1 and Q4. Management also reiterated a ~$70 million restructuring EBIT run‑rate (≈$63M realized in 2025 plus ~$5M in 2026), $70–$80 million of expected real-estate proceeds (≈$48M realized), and plans to use most excess cash flow to reduce net debt after finishing 2025 at 2.4x net debt/adjusted EBITDA en route to a 2.0x target, while retaining capacity for buybacks and small acquisitions.Leggett & Platt Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.95B | 4.06B | 4.38B | 4.73B | 5.15B | 5.07B |
| Gross Profit | 714.00M | 733.30M | 749.10M | 853.80M | 976.80M | 1.04B |
| EBITDA | 346.00M | 367.90M | -287.30M | 94.90M | 668.90M | 785.90M |
| Net Income | 224.80M | 235.40M | -511.50M | -136.80M | 309.80M | 402.40M |
Balance Sheet | ||||||
| Total Assets | 3.52B | 3.54B | 3.66B | 4.63B | 5.19B | 5.31B |
| Cash, Cash Equivalents and Short-Term Investments | 510.50M | 587.40M | 350.20M | 365.50M | 316.50M | 361.70M |
| Total Debt | 1.65B | 1.66B | 2.05B | 2.20B | 2.29B | 2.29B |
| Total Liabilities | 2.48B | 2.51B | 2.97B | 3.30B | 3.54B | 3.66B |
| Stockholders Equity | 1.04B | 1.02B | 689.40M | 1.33B | 1.64B | 1.65B |
Cash Flow | ||||||
| Free Cash Flow | 207.10M | 281.00M | 224.10M | 383.40M | 341.10M | 164.70M |
| Operating Cash Flow | 275.30M | 338.20M | 305.70M | 497.20M | 441.40M | 271.30M |
| Investing Cash Flow | 289.40M | 293.30M | -36.60M | -91.30M | -181.20M | -226.20M |
| Financing Cash Flow | -465.10M | -413.20M | -270.00M | -358.80M | -286.20M | -32.80M |
Leggett & Platt Technical Analysis
Neutral
12.03
Price Trends
10.34
Negative
11.03
Negative
10.29
Negative
Market Momentum
-0.30
Positive
47.21
Neutral
80.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEG, the sentiment is Neutral. The current price of 12.03 is above the 20-day moving average (MA) of 10.19, above the 50-day MA of 10.34, and above the 200-day MA of 10.29, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 80.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LEG.
Leggett & Platt Risk Analysis
Leggett & Platt disclosed 18 risk factors in its most recent earnings report. Leggett & Platt reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Rising interest rates have affected, and could continue to affect, our interest expense and make it more costly to refinance our long-term debt. Q2, 2023
2.
The market transition risks related to climate change could adversely affect our business, results of operations, and financial condition. Q2, 2023
Leggett & Platt Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.69B | 15.39 | 16.69% | 0.21% | 7.34% | 48.24% | |
69 Neutral | $502.31M | 23.98 | 8.46% | 7.86% | -4.79% | -30.21% | |
65 Neutral | $1.50B | 18.08 | 8.12% | 2.39% | 1.69% | -31.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $1.36B | 17.20 | 23.12% | 1.84% | -8.33% | ― | |
50 Neutral | $1.06B | 14.70 | 0.83% | 4.16% | 5.62% | -65.76% | |
42 Neutral | $986.76M | -16.99 | -0.15% | ― | -1.11% | -101.88% |
* Consumer Cyclical Sector Average
LEG
Leggett & Platt
9.99
1.45
16.98%
ETD
Ethan Allen
19.74
-4.46
-18.42%
MLKN
MillerKnoll
15.45
-0.19
-1.21%
TILE
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28.81
9.25
47.31%
LZB
La-Z-Boy Incorporated
36.65
-4.32
-10.53%
MBC
MasterBrand Inc
7.71
-2.43
-23.96%
Leggett & Platt Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Leggett & Platt Shareholders Extend and Expand Stock Plan
Positive
May 22, 2026
On May 20, 2026, President and CEO Karl G. Glassman terminated his aircraft time sharing agreement with Leggett Platt’s transportation subsidiary, effective May 30, 2026, ending his ability to lease company aircraft for personal travel as t...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Leggett & Platt Withdraws 2026 Outlook Amid Somnigroup Deal
Negative
May 7, 2026
Leggett Platt reported first-quarter 2026 sales of $918 million on May 7, 2026, down 10% from a year earlier, with 5% of the decline from 2025 divestitures and 5% from weaker organic demand. Earnings also softened, as EBIT fell to $45 million fro...
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
Somnigroup to Acquire Leggett & Platt in All-Stock Deal
Positive
Apr 13, 2026
On April 13, 2026, Somnigroup International agreed to acquire Leggett Platt in an all-stock transaction valued at about $2.5 billion, with Leggett Platt shareholders to receive 0.1455 Somnigroup share for each of their shares and own roughly 9% ...
Executive/Board Changes
Leggett & Platt Updates 2026 Executive Compensation Framework
Neutral
Feb 24, 2026
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 sli...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.