Leggett & Platt (LEG) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: 2.03%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.19
• Revenue Growth: -6.15%
• EPS Growth: N/A
• Country: US
• Employees: 17,700
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.30
• Shares Outstanding: 135,350,970
• 10 Day Avg. Volume: 1,510,324
• 30 Day Avg. Volume: 1,813,599
• 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: 2.12
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: 6.93
• 1Y Price Target: $9.33
• Price Target Upside: -4.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: $10.00 ▲(2.77% Upside)

Leggett & Platt's overall stock score is primarily influenced by its financial performance challenges, including declining revenues and high debt levels. While technical analysis and valuation provide some positive aspects, the ongoing sales declines and restructuring efforts highlighted in the earnings call underscore the need for strategic improvements. The stock's undervaluation and dividend yield offer some appeal, but risks remain significant.

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 (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 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	408.70M	-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: Positive
• Last Price: 9.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 9.73 is above the 20-day moving average (MA) of 9.12, above the 50-day MA of 9.50, and above the 200-day MA of 9.51, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 87.70 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	80 Outperform	$1.57B	16.49	18.63%	0.15%	6.26%	44.74%
MBC	74 Outperform	$1.75B	18.45	7.15%	―	4.05%	-47.49%
ETD	74 Outperform	$760.97M	14.96	10.69%	6.40%	-4.89%	-19.26%
LZB	64 Neutral	$1.49B	16.77	9.09%	2.33%	2.18%	-22.35%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
MLKN	58 Neutral	$1.46B	45.68	-2.77%	3.49%	1.14%	-149.26%
LEG	55 Neutral	$1.33B	9.43	18.68%	2.03%	-6.15%	―

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.

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.