Legrand SA
Legrand SA Fundamental Analysis
Legrand SA (LGRDY) shows moderate financial fundamentals with a PE ratio of 28.85, profit margin of 13.16%, and ROE of 17.14%. The company generates $9.5B in annual revenue with weak year-over-year growth of 2.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LGRDY's fundamental strength across five key dimensions:
Efficiency Score
WeakLGRDY struggles to generate sufficient returns from assets.
Valuation Score
ModerateLGRDY shows balanced valuation metrics.
Growth Score
WeakLGRDY faces weak or negative growth trends.
Financial Health Score
ExcellentLGRDY maintains a strong and stable balance sheet.
Profitability Score
ModerateLGRDY maintains healthy but balanced margins.
Key Financial Metrics
Is LGRDY Expensive or Cheap?
P/E Ratio
LGRDY trades at 28.85 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LGRDY's PEG of -14.18 indicates potential undervaluation.
Price to Book
The market values Legrand SA at 4.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.76 times EBITDA. This signals the market has high growth expectations.
How Well Does LGRDY Make Money?
Net Profit Margin
For every $100 in sales, Legrand SA keeps $13.16 as profit after all expenses.
Operating Margin
Core operations generate 20.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.14 in profit for every $100 of shareholder equity.
ROA
Legrand SA generates $7.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Legrand SA produces operating cash flow of $1.57B, showing steady but balanced cash generation.
Free Cash Flow
Legrand SA generates strong free cash flow of $1.34B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.02 in free cash annually.
FCF Yield
LGRDY converts 3.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-14.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How LGRDY Stacks Against Its Sector Peers
| Metric | LGRDY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.85 | 26.11 | Worse (Expensive) |
| ROE | 17.14% | 1298.00% | Weak |
| Net Margin | 13.16% | -34100.00% (disorted) | Strong |
| Debt/Equity | 0.95 | 0.81 | Neutral |
| Current Ratio | 1.93 | 10.62 | Neutral |
| ROA | 7.07% | -1540438.00% (disorted) | Weak |
LGRDY outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Legrand SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.02%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
42.31%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
25.19%
Industry Style: Cyclical, Value, Infrastructure
High Growth