Leggett & Platt (LEG) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 2.48%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.13
• Revenue Growth: -6.16%
• EPS Growth: N/A
• Country: US
• Employees: 17,700
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.30
• Shares Outstanding: 135,144,520
• 10 Day Avg. Volume: 1,966,641
• 30 Day Avg. Volume: 2,718,791
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.59
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: 7.28
• 1Y Price Target: $9.33
• Price Target Upside: 10.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: $8.00 ▼(-5.33%Downside)

Leggett & Platt's overall score reflects significant financial challenges and bearish technical indicators. Valuation metrics offer some attractiveness, and restructuring efforts are progressing, but sales declines and high debt levels remain major concerns.

Positive Factors

Cost Management

LEG should benefit from cost savings and better fundamentals in the Bedding segment, with $35M-$40M of cost cuts in place.

Earnings

Analyst upgrades shares of LEG to Neutral and increases the price target to $13 due to increased confidence in EPS growth.

Market Position

The outlook for LEG's Bedding segment is improved as LEG benefits from a large Sealy product line reset and stabilization in market share.

Negative Factors

Automotive Segment Challenges

LEG's Automotive business faces structural headwinds from Chinese manufactured EVs, impacting sales and volumes negatively.

Consumer Demand Uncertainty

Uncertainty around the timing and magnitude of a recovery in consumer discretionary demand and industrial end markets will continue to weigh on the stock.

Retail Sector Disruptions

Retail bankruptcies in the Home Furniture space, like those of Big Lots and Conn’s/Badcock, have been disruptive and could worsen for LEG.

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 through the sale of its diverse product offerings across various segments. The Bedding Products segment, which includes innersprings and specialty foams, is a significant source of revenue, catering to mattress manufacturers. The Specialized Products segment serves the automotive, aerospace, and hydraulic cylinders markets, providing components such as seating systems and motors. The Furniture Products segment supplies mechanisms and components for furniture manufacturers, while the Flooring Products segment offers underlay materials and other carpeting accessories. The company's earnings are bolstered by strategic partnerships with manufacturers and retailers, as well as its focus on innovation and operational efficiency to meet customer demands.

Leggett & Platt Financial Statement Overview

Summary

Leggett & Platt faces significant financial challenges, with declining revenues and net losses affecting profitability. High debt levels pose risks, but positive cash flow trends provide some relief.

Income Statement

Leggett & Platt's income statement shows significant challenges, with declining revenue and negative net income over the TTM. Gross profit margin is reasonable at 17.1% TTM, but the company faces shrinking EBIT and EBITDA margins, indicating operational difficulties. The net profit margin is negative due to substantial net losses. Revenue growth has been negative, emphasizing a declining trend in sales.

Balance Sheet

The balance sheet reveals a stable but pressured financial position. The debt-to-equity ratio is relatively high at 2.82, indicating significant leverage. The equity ratio is 19.9%, showing moderate reliance on debt financing. ROE is negative due to net losses, pointing to profitability issues. Overall, the company maintains a substantial debt level, which poses risk given the current performance.

Cash Flow

Cash flow analysis shows some positives with operating cash flow exceeding net income, indicating good cash generation from operations despite losses. Free cash flow has grown to $249.6 million TTM, reflecting efficient capital management. However, the free cash flow to net income ratio is not applicable due to negative net income, highlighting ongoing profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.24B	4.38B	4.73B	5.15B	5.07B	4.28B
Gross Profit	743.60M	749.10M	853.80M	976.80M	1.04B	894.50M
EBITDA	388.90M	-288.60M	93.20M	663.80M	778.10M	590.70M
Net Income	142.20M	-511.50M	-136.80M	309.80M	402.40M	253.00M
Balance Sheet
Total Assets	3.70B	3.66B	4.63B	5.19B	5.31B	4.75B
Cash, Cash Equivalents and Short-Term Investments	368.80M	350.20M	365.50M	316.50M	361.70M	348.90M
Total Debt	1.84B	2.05B	2.20B	2.29B	2.29B	2.06B
Total Liabilities	0.00	2.97B	3.30B	3.54B	3.66B	3.36B
Stockholders Equity	855.80M	689.40M	1.33B	1.64B	1.65B	1.39B
Cash Flow
Free Cash Flow	171.10M	224.10M	383.40M	341.10M	164.70M	536.40M
Operating Cash Flow	224.60M	305.70M	497.20M	441.40M	271.30M	602.60M
Investing Cash Flow	-24.10M	-36.60M	-91.30M	-181.20M	-226.20M	-49.00M
Financing Cash Flow	-92.90M	-270.00M	-358.80M	-286.20M	-32.80M	-461.70M

Leggett & Platt Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 8.45 is below the 20-day moving average (MA) of 9.87, below the 50-day MA of 9.47, and below the 200-day MA of 9.78, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 34.76 is Neutral, neither overbought nor oversold. The STOCH value of 9.54 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	79 Outperform	$1.44B	15.22	18.63%	0.16%	6.26%	44.74%
ETD	74 Outperform	$726.28M	14.19	10.69%	6.86%	-4.89%	―
LZB	70 Outperform	$1.46B	15.06	9.84%	2.43%	3.04%	-16.49%
Sector *	63 Neutral	£1.75B	11.25	2.35%	3.21%	0.29%	-37.72%
MBC	63 Neutral	$1.40B	14.21	8.02%	―	1.30%	-44.70%
MLKN	56 Neutral	$1.23B	45.68	-2.77%	4.12%	1.14%	-149.26%
LEG	51 Neutral	$1.09B	7.88	18.67%	2.48%	-6.16%	―

Leggett & Platt Corporate Events

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.

Leggett & Platt Amends Credit Agreement with JPMorgan

On July 24, 2025, Leggett & Platt, Incorporated amended its credit agreement with JPMorgan Chase Bank and other lenders, resulting in several key changes. These include a reduction in the revolving credit facility from $1.2 billion to $1.0 billion, an extension of the maturity date to July 24, 2030, and adjustments to borrowing terms such as the reinstatement of borrowing in Canadian dollars and the suspension of borrowing in Mexican Pesos. The company’s commercial paper program was also reduced from $1.2 billion to $1.0 billion, reflecting a strategic adjustment in its financial operations.

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 Amends Flexible Stock Plan

Leggett & Platt has amended and restated its Flexible Stock Plan, which was approved by shareholders during the Annual Meeting on May 7, 2025. The plan aims to attract and retain key personnel by offering stock-based benefits and aligns participants’ interests with those of shareholders. Key amendments include increasing available shares by 5 million, extending the plan’s term to 2035, and introducing provisions for dividend credits and clawback rights. Additionally, the meeting saw the election of eight directors, ratification of PricewaterhouseCoopers LLP as the independent auditor, and approval of executive compensation.