Morningstar

Legrand SA LR

Morningstar Rating
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Stock XPAR Rating as of
€101.45 −0.90 (0.88%)
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As of Delayed Price Open

Company Report

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Legrand: Targets Set at Capital Markets Day Are Attainable; Raising Our Fair Value Estimate

Matthew Donen

We’re raising our fair value estimate for narrow-moat Legrand to EUR 94, from EUR 91, to incorporate its latest medium-term guidance set at its capital markets day. We are confident in Legrand delivering its annualized revenue growth target of between 6% and 10% through 2030, of which half will be via acquisitions. Management has successfully showcased its ability to use acquisitions to reach its growth targets in the past and we expect will continue to do so, given a fragmented market and several adjacent product verticals to grow its total addressable market. Shares screen as marginally overvalued.

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Price vs Fair Value

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LR is trading at a 467% premium.
Price
€102.35
Fair Value
€96.00
Uncertainty
Medium
1-Star Price
€168.70
5-Star Price
€35.20
Economic Moat
Pllzyp
Capital Allocation
Fwbtkdlm

Bulls Say, Bears Say

Bulls

Legrand is well positioned to capitalize on growing investment in energy efficiency and connected products and investments into data centers to support AI.

Bears

Higher interest rates have curtailed spending in residential and nonresidential buildings, which has lowered demand for Legrand’s electrical products and limited its ability to raise prices.

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News

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Trading Information

Previous Close Price
€102.35
Day Range
€101.05–101.90
52-Week Range
€77.00–107.35
Bid/Ask
€101.45 / €101.50
Market Cap
€26.61 Bil
Volume/Avg
29,230 / 410,804

Key Statistics

Price/Earnings (Normalized)
19.13
Price/Sales
3.25
Dividend Yield (Trailing)
2.04%
Dividend Yield (Forward)
2.04%
Total Yield
3.20%

Company Profile

Legrand is a global manufacturer of low-voltage electrical components, which are mostly used in residential (40%) and nonresidential (40%) buildings. Its products include wiring devices, cable management, lighting, and audio visual equipment, sold under approximately 80 brands across 180 countries. Its products are sold primarily through specialist distributors that subsequently sell to installers/electricians. Legrand is a major supplier to global electrical equipment distributors, including Rexel and Sonepar. North America and Europe each account for 40% of group sales.
Sector
Industrials
Industry
Electrical Equipment & Parts
Stock Style Box
Large Core
Total Number of Employees
37,447
Website
https://www.legrand.com

Competitors

Valuation

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Metric
LR
SU
ABBN
Price/Earnings (Normalized)
 19.1328.3524.61
Price/Book Value
 3.954.817.53
Price/Sales
 3.253.683.20
Price/Cash Flow
 17.5822.5822.92
Price/Earnings
LR
SU
ABBN

Financial Strength

Metric
LR
SU
ABBN
Quick Ratio
 1.210.910.85
Current Ratio
 1.671.211.32
Interest Coverage
 9.8513.2924.86
Quick Ratio
LR
SU
ABBN

Profitability

Metric
LR
SU
ABBN
Return on Assets (Normalized)
 7.77%7.69%9.20%
Return on Equity (Normalized)
 17.55%17.35%28.22%
Return on Invested Capital (Normalized)
 10.15%11.49%16.50%
Return on Assets
LR
SU
ABBN

Electrical Equipment & Parts Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ABB Ltd
ABLZF
—Mdmrn$107.5 Bil
 ABB Ltd ADR
ABBNY
StcvhmsqgLbs$107.5 Bil
 Vertiv Holdings Co Class A
VRT
—Kfwhgn$38.4 Bil
 Mitsubishi Electric Corp ADR
MIELY
—Cmchpz$34.3 Bil
 Mitsubishi Electric Corp
MIELF
—Hnskys$34.3 Bil
 Legrand SA
LGRVF
—Ckbk$29.7 Bil
 Legrand SA ADR
LGRDY
—Fjkv$29.7 Bil
 Hayward Holdings Inc
HAYW
LrrmsvzjwQcvkxz$3.2 Bil
 Bloom Energy Corp Class A
BE
FdqfgmcRfg$2.4 Bil
 Plug Power Inc
PLUG
LrbfCxp$1.9 Bil

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