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Legrand SA LR

Morningstar Rating
€96.80 +1.94 (2.05%)
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Company Report

Legrand's Significant Exposure to the Construction Sector Provides a Weaker Outlook Versus Peers

Legrand has established itself as a dominant player in electrical equipment, enjoying a leading market share in two thirds of its product ranges. Its brand reputation for reliability and extensive product range has created close-knit relationships with the key participants in the sales channels, creating high barriers to entry and resilient profitability. While the majority of its products are sold via major distributors, the key decision-makers in electrical equipment are electricians, who act on behalf of the end user. Legrand’s push-pull strategy reinforces its close relationships with stakeholders by offering distributors an extensive product range of over 300,000 products and frequent training on its regular product innovations to installers, who are largely insensitive to price and who value reputation and ease of installation above price.

Price vs Fair Value

LR is trading at a 238% premium.
Price
€96.80
Fair Value
€79.00
Uncertainty
Medium
1-Star Price
€721.35
5-Star Price
€54.60
Economic Moat
Qmlzkr
Capital Allocation
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Bulls Say, Bears Say

Bulls

Legrand is well positioned to capitalize on growing investment in energy efficiency and connected products, while also indirectly benefiting from rising electrification.

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

Trading Information

Previous Close Price
€94.86
Day Range
€94.7897.28
52-Week Range
€77.00104.90
Bid/Ask
€95.00 / €97.76
Market Cap
€25.37 Bil
Volume/Avg
310,639 / 435,099

Key Statistics

Price/Earnings (Normalized)
18.50
Price/Sales
3.10
Dividend Yield (Trailing)
2.16%
Dividend Yield (Forward)
2.16%
Total Yield
4.00%

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
33,910

Competitors

Valuation

Metric
LR
SU
ABBN
Price/Earnings (Normalized)
18.5029.1725.86
Price/Book Value
3.604.968.35
Price/Sales
3.103.713.38
Price/Cash Flow
16.6024.0725.39
Price/Earnings
LR
SU
ABBN

Financial Strength

Metric
LR
SU
ABBN
Quick Ratio
1.320.900.83
Current Ratio
1.841.221.23
Interest Coverage
11.7012.1619.59
Quick Ratio
LR
SU
ABBN

Profitability

Metric
LR
SU
ABBN
Return on Assets (Normalized)
8.00%6.93%8.77%
Return on Equity (Normalized)
17.86%15.86%27.51%
Return on Invested Capital (Normalized)
10.44%10.98%15.88%
Return on Assets
LR
SU
ABBN
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