LEG Stock Intrinsic Value – LEGGETT & PLATT Reports Financial Results for Second Quarter of FY2023
August 10, 2023
🌥️Earnings Overview
On July 31 2023, LEGGETT & PLATT ($NYSE:LEG) announced their financial results for the second quarter of fiscal year 2023, which ended on June 30 2023. Total revenue for the quarter amounted to USD 1221.2 million, 8.5% lower than the same period in the previous year. Net income for the quarter decreased by 43.1%, amounting to USD 54.2 million.
Market Price
The stock opened at $29.6 and closed at $29.3, down 0.9% from the previous closing price of $29.5. The increase in net income was primarily driven by higher sales and margin expansion across all segments. The company’s strong financial performance and cash flow were reflected in their stock price, which has steadily increased over the past year due to its focus on organic growth and disciplined capital deployments. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for LEG. More…
| Total Revenues | Net Income | Net Margin |
| 4.92k | 231.9 | 4.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for LEG. More…
| Operations | Investing | Financing |
| 519.9 | -206.1 | -307.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for LEG. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.14k | 3.48k | 12.51 |
Key Ratios Snapshot
Some of the financial key ratios for LEG are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.8% | -3.1% | 7.9% |
| FCF Margin | ROE | ROA |
| 8.0% | 14.7% | 4.8% |
Analysis – LEG Stock Intrinsic Value
GoodWhale has conducted an analysis of the wellbeing of LEggett & Platt and determined that the fair value of their stock is estimated to be around $41.0, as calculated with our proprietary Valuation Line. However, currently their stock is being traded at a price of only $29.3, which is a discount of 28.5% lower than our estimated fair value. This indicates that the stock of LEGGETT & PLATT is undervalued and may present an opportunity for investors. More…
Peers
The company operates in 19 countries and sells its products to customers in more than 130 countries. Leggett & Platt is a publicly traded company with annual sales of more than $4 billion. The company has more than 30,000 employees. Leggett & Platt’s primary competitors are John Lewis of Hungerford PLC, Savimex Corp, and Fabryki Mebli Forte SA. Leggett & Platt has a competitive advantage over its competitors because of its size, diversification, and global reach. The company is also well-positioned to benefit from trends such as the increasing popularity of adjustable beds and the growing demand for automotive seating products.
– John Lewis of Hungerford PLC ($LSE:JLH)
Lewis of Hungerford PLC is a company that manufactures and sells kitchen furnishings. As of 2022, it has a market capitalization of 2.61 million GBP and a return on equity of 35.66%. The company was founded in 1876 and is headquartered in Hungerford, United Kingdom.
– Savimex Corp ($HOSE:SAV)
Fabryki Mebli Forte SA is a Polish furniture manufacturer that produces a wide variety of furniture for both home and office settings. The company has a market capitalization of 445.11M as of 2022 and a return on equity of 10.25%. Founded in 1992, Fabryki Mebli Forte SA has grown to become one of the leading furniture manufacturers in Poland. The company offers a wide range of furniture products including bedroom sets, living room sets, office furniture, and more. Fabryki Mebli Forte SA is dedicated to providing high-quality furniture at affordable prices.
Summary
Leggett & Platt released their financial results for the second quarter of Fiscal Year 2023, ending June 30 2023, on July 31 2023. Total revenue for the quarter was USD 1221.2 million, a decrease of 8.5% from the same period last year. Net income for the quarter was USD 54.2 million, a 43.1% decrease from the same quarter last year. These results indicate weak performance for the company, with significant declines in both revenue and net income.
Investors should be cautious in the near-term, given the potential headwinds facing Leggett & Platt in the coming quarters. Long-term investors should closely monitor the performance of the company for any signs of improvement and assess if the current stock price is a good value.
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