Leggett & Platt, Incorporated (LEG)
Consumer Cyclical · NYQ · US
Fundamentals
Valuation and ratings
Leggett & Platt, Incorporated trades at USD11.31, which is 25% below the USD14.19 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 33 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 6.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Leggett & Platt, Incorporated
Leggett & Platt, Incorporated, together with its subsidiaries, designs, manufactures, and sells engineered components and products in the United States, Europe, China, Canada, Mexico, and internationally. The company offers steel rod, drawn wire, innersprings, specialty foam chemicals and additives, for use in bedding and furniture, semi-finished mattresses, private label finished mattresses, pillows and toppers, static foundations, and adjustable beds to industrial users of steel rod and wire, manufacturers of finished bedding, bedding brands and mattress retailers, e-commerce retailers, big box 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; and engineered hydraulic cylinders to automobile original equipment manufacturers (OEMs) and suppliers, aerospace OEMs and suppliers, and mobile equipment OEMs. In addition, the company offers steel mechanisms and motion hardware; springs and seat suspensions; components and private label finished goods for soft seating; bases, columns, back rests, casters, and frames for office chairs and control devices; and carpet cushion and hard surface flooring underlayment, structural fabrics, and geo components for manufacturers of upholstered and office furniture, flooring retailers and distributors, contractors, landscapers, road construction companies, retailers, government agencies, mattress and furniture producers, and manufacturers of draperies, specialty packaging, filtration, and automotive upholstery. Leggett & Platt, Incorporated was founded in 1883 and is based in Carthage, Missouri.
LEG passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
7 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Two Sigma, TWO SIGMA INVESTMENTS, LP$19.56M · 0.0% of book
- Marshall Wace, MARSHALL WACE, LLP$11.55M · 0.0% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$10.10M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$10.01M · 0.0% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$7.78M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Leggett & Platt, Incorporated (LEG) undervalued?
Against our discounted cash flow estimate of USD14.19, LEG at USD11.31 is 25% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own LEG?
7 of the institutions we track reported a position in LEG in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is LEG's P/E ratio?
LEG trades at 6.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for LEG, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.