📊 LEG Key Takeaways
Is Leggett & Platt Inc. (LEG) a Good Investment?
Leggett & Platt demonstrates exceptional financial discipline with 146% earnings growth and robust free cash flow ($281M) despite 7.5% revenue decline, indicating strong capital management. However, the unsustainable profit surge coupled with declining top-line revenue and cyclical household furniture exposure presents execution risk; the company requires revenue stabilization to validate earning power.
Fundamentals show solid cash generation and improved margins despite a mid‑single‑digit revenue decline, supported by strong liquidity and a capex‑light model. However, elevated leverage with only moderate interest coverage and cyclical demand risk limit upside until topline stabilizes. Sustained margin resilience and a return to growth would justify a more constructive view.
Why Buy Leggett & Platt Inc. Stock? LEG Key Strengths
- Exceptional profitability improvement (146% net income growth YoY) with strong ROE of 23.0% and ROA of 6.7%
- Outstanding cash generation ($281M free cash flow, 6.9% FCF margin) demonstrates business quality independent of revenue trends
- Solid financial position with $587.4M cash, 2.25x current ratio, and adequate 4.0x interest coverage providing safety margin
- Moderate leverage (1.46x debt-to-equity) is manageable given strong cash flow generation
- Strong liquidity (current 2.25x, quick 1.45x) and sizable cash balance
- Healthy free cash flow with low capex; ~6.9% FCF margin
- Profitability rebound (operating margin 7.1%, ROE 23%)
LEG Stock Risks: Leggett & Platt Inc. Investment Risks
- Revenue declined 7.5% YoY to $4.1B; core business facing structural headwinds in cyclical furniture sector
- Profit surge of 146% appears unsustainable and likely driven by one-time items or aggressive cost restructuring rather than organic growth
- Thin operating margin (7.1%) and net margin (5.8%) provide limited room for error during economic slowdown
- $1.5B long-term debt is material relative to $1.0B equity; debt reduction needed if revenue remains pressured
- Continued revenue contraction in cyclical bedding/furniture end markets
- Leverage is elevated (D/E 1.46x) with modest 4.0x interest coverage
- Input cost volatility could pressure margins and cash conversion
Key Metrics to Watch
- Revenue stabilization and return to growth (critical leading indicator)
- Operating margin sustainability and whether 146% profit growth was one-time or repeatable
- Free cash flow consistency and debt-to-EBITDA trajectory for deleveraging progress
- Order book trends and customer demand indicators for furniture end-markets
- Revenue growth (YoY) and order trends
- Interest coverage and net leverage
Leggett & Platt Inc. (LEG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.25x current ratio provides a solid financial cushion.
LEG Profit Margin, ROE & Profitability Analysis
LEG vs Market Sector: How Leggett & Platt Inc. Compares
How Leggett & Platt Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Leggett & Platt Inc. Stock Overvalued? LEG Valuation Analysis 2026
Based on fundamental analysis, Leggett & Platt Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Leggett & Platt Inc. Balance Sheet: LEG Debt, Cash & Liquidity
LEG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Leggett & Platt Inc.'s revenue has remained relatively flat over the 5-year period, with a 7% decline. The most recent EPS of $-1.00 indicates the company is currently unprofitable.
LEG Revenue Growth, EPS Growth & YoY Performance
LEG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.0B | $44.9M | $0.33 |
| Q2 2025 | $1.1B | $52.5M | $0.38 |
| Q1 2025 | $1.0B | $30.6M | $0.22 |
| Q3 2024 | $1.1B | $44.9M | $0.33 |
| Q2 2024 | $1.1B | $54.2M | $0.40 |
| Q1 2024 | $1.1B | $31.6M | $0.23 |
| Q3 2023 | $1.2B | $52.8M | $0.39 |
| Q2 2023 | $1.2B | $54.2M | $0.40 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Leggett & Platt Inc. Dividends, Buybacks & Capital Allocation
LEG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Leggett & Platt Inc. (CIK: 0000058492)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LEG
What is the AI rating for LEG?
Leggett & Platt Inc. (LEG) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LEG's key strengths?
Claude: Exceptional profitability improvement (146% net income growth YoY) with strong ROE of 23.0% and ROA of 6.7%. Outstanding cash generation ($281M free cash flow, 6.9% FCF margin) demonstrates business quality independent of revenue trends. ChatGPT: Strong liquidity (current 2.25x, quick 1.45x) and sizable cash balance. Healthy free cash flow with low capex; ~6.9% FCF margin.
What are the risks of investing in LEG?
Claude: Revenue declined 7.5% YoY to $4.1B; core business facing structural headwinds in cyclical furniture sector. Profit surge of 146% appears unsustainable and likely driven by one-time items or aggressive cost restructuring rather than organic growth. ChatGPT: Continued revenue contraction in cyclical bedding/furniture end markets. Leverage is elevated (D/E 1.46x) with modest 4.0x interest coverage.
What is LEG's revenue and growth?
Leggett & Platt Inc. reported revenue of $4.1B.
Does LEG pay dividends?
Leggett & Platt Inc. pays dividends, with $27.0M distributed to shareholders in the trailing twelve months.
Where can I find LEG SEC filings?
Official SEC filings for Leggett & Platt Inc. (CIK: 0000058492) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LEG's EPS?
Leggett & Platt Inc. has a diluted EPS of $1.69.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LEG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Leggett & Platt Inc. has a HOLD rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LEG stock overvalued or undervalued?
Valuation metrics for LEG: ROE of 23.0% (sector avg: 15%), net margin of 5.8% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy LEG stock in 2026?
Our dual AI analysis gives Leggett & Platt Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LEG's free cash flow?
Leggett & Platt Inc.'s operating cash flow is $338.2M, with capital expenditures of $57.2M. FCF margin is 6.9%.
How does LEG compare to other Market stocks?
Vs Default sector averages: Net margin 5.8% (avg: 12%), ROE 23.0% (avg: 15%), current ratio 2.25 (avg: 1.8).