Leggett & Platt (LEG) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: 2.09%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -6.50%
• EPS Growth: -221.33%
• Country: US
• Employees: 17,700
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.24
• Shares Outstanding: 135,144,520
• 10 Day Avg. Volume: 1,905,800
• 30 Day Avg. Volume: 2,042,104
• PEG Ratio: -0.62
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.86
• Enterprise Value/Market Cap: 4.89
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 8.60
• Enterprise Value/Ebitda: -3.28
• 1Y Price Target: $9.00
• Price Target Upside: -6.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $9.00 ▼(-6.44%Downside)

Leggett & Platt's overall stock score is primarily influenced by its financial challenges, including declining revenues and net losses, which are somewhat offset by positive cash flow trends. Technical indicators reflect moderate strength, while valuation metrics highlight pressure from current earnings weaknesses. The earnings call underscores strategic efforts but also ongoing market challenges.

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 (LEG) is a diversified manufacturer that designs and produces a wide range of engineered components and products found in many homes and automobiles. Headquartered in Carthage, Missouri, the company operates in several segments, including Bedding Products, Specialized Products, Furniture Products, and Flooring Products. Leggett & Platt is known for its innovative products and has established itself as a leading supplier in the residential furnishings and automotive components markets.

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 impacting profitability. High debt levels combined with negative profitability metrics suggest financial risk. However, 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
4.31B	4.38B	4.73B	5.15B	5.07B	4.28B
	Gross Profit
739.10M	749.10M	853.80M	976.80M	1.04B	894.50M
	EBIT
231.70M	240.30M	320.60M	485.00M	596.00M	400.50M
	EBITDA
-290.50M	-288.60M	93.20M	663.80M	778.10M	590.70M
	Net Income Common Stockholders
-512.50M	-511.50M	-136.80M	309.80M	402.40M	253.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
412.60M	350.20M	365.50M	316.50M	361.70M	348.90M
	Total Assets
3.75B	3.66B	4.63B	5.19B	5.31B	4.75B
	Total Debt
2.11B	2.05B	2.20B	2.29B	2.29B	2.06B
	Net Debt
1.70B	1.70B	1.83B	1.97B	1.93B	1.72B
	Total Liabilities
3.00B	2.97B	3.30B	3.54B	3.66B	3.36B
	Stockholders Equity
747.60M	689.40M	1.33B	1.64B	1.65B	1.39B
Cash Flow		Free Cash Flow
249.60M	224.10M	383.40M	341.10M	164.70M	536.40M
	Operating Cash Flow
318.60M	305.70M	497.20M	441.40M	271.30M	602.60M
	Investing Cash Flow
-33.90M	-36.60M	-91.30M	-179.40M	-220.70M	-51.40M
	Financing Cash Flow
-224.80M	-270.00M	-358.80M	-284.50M	-39.70M	-448.40M

Leggett & Platt Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 9.62 is above the 20-day moving average (MA) of 9.16, above the 50-day MA of 8.50, and below the 200-day MA of 10.36, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 62.71 is Neutral, neither overbought nor oversold. The STOCH value of 86.75 is Negative, 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	73 Outperform	$1.23B	14.45	18.15%	0.19%	5.41%	44.50%
LZB	72 Outperform	$1.70B	14.13	12.40%	2.13%	1.81%	8.09%
ETD	72 Outperform	$687.88M	11.99	12.09%	5.77%	-6.32%	-18.35%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
MLKN	58 Neutral	$1.21B	41.98	2.28%	4.21%	-2.68%	-56.16%
MBC	58 Neutral	$1.39B	13.54	8.02%	―	1.30%	-44.70%
LEG	52 Neutral	$1.30B	―	-50.35%	2.09%	-6.50%	-221.33%

Leggett & Platt Corporate Events

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.

Leggett & Platt Reports Q1 2025 Sales Decline

Leggett & Platt reported a 7% decrease in first-quarter sales for 2025 compared to the previous year, with sales totaling $1.0 billion. Despite the decline in sales, the company achieved a slight increase in adjusted EPS and improved operating cash flow, attributed to effective restructuring and cost management strategies. The company is maintaining its sales and adjusted EPS guidance for 2025, despite challenges in the domestic bedding industry and macroeconomic uncertainties. Leggett & Platt continues to focus on strengthening its balance sheet and operational efficiency, with strategic divestitures, including the planned sale of its Aerospace business, to position itself for long-term growth.

Leggett & Platt Announces Sale of Aerospace Division

On April 2, 2025, Leggett & Platt announced the signing of a Share Purchase Agreement to sell its Aerospace Products Group to entities advised by Tinicum Incorporated for $285 million. This divestiture, part of Leggett’s strategic business review, involves seven manufacturing facilities and approximately 700 employees, and is expected to close in 2025 pending regulatory approvals. The transaction aims to align Leggett’s focus on long-term business fits and is anticipated to yield after-tax cash proceeds of approximately $240 million.