Legrand SA

LR: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€23.00	Xpmgpc	Ddvdwcw

Legrand Earnings: Pricing Power Drives Record Operating Margin

Matthew Donen

Feb 15, 2024

Narrow-moat Legrand delivered a record operating margin of 21%, evidence of its strong pricing power, despite declining demand from its residential and commercial buildings end markets. Organic sales grew 2.7% during fiscal 2023, in line with company-compiled consensus of 3.0%. Full-year 2024 guidance of sales growth in the low single digits (including acquisitions) and an adjusted operating margin of between 20.0% and 20.8% is consistent with our forecasts. Shares are currently trading slightly above our EUR 87 fair value estimate, which we maintain.

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