Leggett & Platt (LEG) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: 2.22%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.17
• Revenue Growth: -6.15%
• EPS Growth: N/A
• Country: US
• Employees: 17,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.30
• Shares Outstanding: 135,350,970
• 10 Day Avg. Volume: 1,654,803
• 30 Day Avg. Volume: 1,758,929
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 5.88
• Enterprise Value/Market Cap: 2.32
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: 6.93
• 1Y Price Target: $9.33
• Price Target Upside: 3.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $9.50 ▲(5.44% Upside)

Leggett & Platt's overall stock score reflects significant financial challenges, with declining revenues and high debt levels posing risks. However, positive cash flow trends and restructuring efforts provide some optimism. The stock's valuation appears attractive, and technical indicators suggest potential for recovery. Earnings call insights highlight successful restructuring, but sales declines remain a concern.

Positive Factors

Restructuring Progress

Successful restructuring efforts have improved profitability and strengthened the balance sheet, providing a more stable financial foundation for future growth.

Debt Reduction

Reducing debt enhances financial flexibility and lowers interest expenses, which can improve cash flow and support long-term strategic initiatives.

Positive Impact of Tariffs

Favorable tariff changes are likely to boost demand in key segments, enhancing revenue potential and competitive positioning in the U.S. market.

Negative Factors

Sales Decline

A decline in sales across major segments indicates challenges in market demand and competitive pressures, potentially impacting long-term revenue growth.

Challenges in Bedding Products

Significant sales decline in the Bedding Products segment highlights ongoing challenges in a core revenue area, affecting overall company performance.

Impact of Tariffs on Home Furniture

Tariff-related disruptions in the Home Furniture segment may lead to operational inefficiencies and lost sales, impacting profitability and market share.

Leggett & Platt Business Overview & Revenue Model

Company Description

Leggett & Platt, Incorporated designs, manufactures, and markets engineered components and products worldwide. It operates through three segments: Bedding Products; Specialized Products; and Furniture, Flooring & Textile Products. The company offers steel rods, drawn wires, foam chemicals and additives, innersprings, specialty foams, private label finished mattresses, mattress foundations, wire forms for mattress foundations, adjustable beds, industrial sewing and quilting machines, and mattress packaging and glue drying equipment, as well as machines to produce innersprings for industrial users of steel rods and wires, manufacturers of finished bedding, big box and e-commerce retailers, bedding brands and mattress retailers, department stores, and home improvement centers. It also provides mechanical and pneumatic lumbar support and massage systems for automotive seating; seat suspension systems, motors and actuators, and cables; titanium, nickel, and stainless-steel tubing, formed tubes, tube assemblies, and flexible joint components for fluid conveyance systems; and engineered hydraulic cylinders to automobile OEMs and Tier 1 suppliers, aerospace OEMs and suppliers, and mobile equipment OEMs. In addition, the company offers steel mechanisms and motion hardware for reclining chairs, sofas, sleeper sofas and lift chairs; springs and seat suspensions; components and private label finished goods for soft seating; and bases, columns, back rests, casters, and frames, as well as control devices for chairs. Further, it offers carpet cushion and hard surface flooring underlayment, structural fabrics, and geo components to manufacturers of upholstered and office furniture, flooring retailers and distributors, contractors, landscapers, road construction companies, retailers, government agencies, and mattress and furniture producers, as well as manufacturers of packaging, filtration, and draperies. The company was founded in 1883 and is based in Carthage, Missouri.

How the Company Makes Money

Leggett & Platt generates revenue through the sale of its diverse range of products across multiple sectors. The company has several key revenue streams, primarily from its Bedding Products segment, which includes mattress components like innersprings and foundations, as well as adjustable beds. The Furniture Products segment contributes significantly as well, providing components for upholstered furniture and other household items. Additionally, the Specialized Products segment caters to industries such as automotive, aerospace, and industrial markets. Leggett & Platt benefits from long-term relationships with major retailers and manufacturers, which provide stability and recurring revenue. Strategic partnerships and acquisitions also play a role in enhancing its product offerings and expanding market reach, thereby contributing to its overall earnings.

Leggett & Platt Financial Statement Overview

Summary

Leggett & Platt is experiencing significant financial challenges, with declining revenues and ongoing net losses impacting profitability. The company has a high level of debt, which, combined with negative profitability metrics, suggests potential financial risk. Positive cash flow trends offer some relief, but overall, the financial health is under pressure.

Income Statement

Leggett & Platt's income statement shows significant challenges, with declining revenue and negative net income over the TTM. Gross profit margin is reasonable at 17.1% TTM, but the company faces shrinking EBIT and EBITDA margins, indicating operational difficulties. The net profit margin is negative due to substantial net losses. Revenue growth has been negative, emphasizing a declining trend in sales.

Balance Sheet

The balance sheet reveals a stable but pressured financial position. The debt-to-equity ratio is relatively high at 2.82, indicating significant leverage. The equity ratio is 19.9%, showing moderate reliance on debt financing. ROE is negative due to net losses, pointing to profitability issues. Overall, the company maintains a substantial debt level, which poses risk given the current performance.

Cash Flow

Cash flow analysis shows some positives with operating cash flow exceeding net income, indicating good cash generation from operations despite losses. Free cash flow has grown to $249.6 million TTM, reflecting efficient capital management. However, the free cash flow to net income ratio is not applicable due to negative net income, highlighting ongoing profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.24B	4.38B	4.73B	5.15B	5.07B	4.28B
Gross Profit	743.60M	749.10M	853.80M	976.80M	1.04B	894.50M
EBITDA	408.70M	-288.60M	93.20M	663.80M	778.10M	590.70M
Net Income	142.20M	-511.50M	-136.80M	309.80M	402.40M	253.00M
Balance Sheet
Total Assets	3.70B	3.66B	4.63B	5.19B	5.31B	4.75B
Cash, Cash Equivalents and Short-Term Investments	368.80M	350.20M	365.50M	316.50M	361.70M	348.90M
Total Debt	1.96B	2.05B	2.20B	2.29B	2.29B	2.06B
Total Liabilities	2.85B	2.97B	3.30B	3.54B	3.66B	3.36B
Stockholders Equity	855.80M	689.40M	1.33B	1.64B	1.65B	1.39B
Cash Flow
Free Cash Flow	246.60M	224.10M	383.40M	341.10M	164.70M	536.40M
Operating Cash Flow	308.60M	305.70M	497.20M	441.40M	271.30M	602.60M
Investing Cash Flow	-7.70M	-36.60M	-91.30M	-181.20M	-226.20M	-49.00M
Financing Cash Flow	-246.70M	-270.00M	-358.80M	-286.20M	-32.80M	-461.70M

Leggett & Platt Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEG, the sentiment is Negative. The current price of 9.01 is below the 20-day moving average (MA) of 9.28, below the 50-day MA of 9.30, and below the 200-day MA of 9.15, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 32.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEG.

Leggett & Platt Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TILE	80 Outperform	$1.61B	17.07	18.63%	0.18%	6.26%	44.74%
MBC	79 Outperform	$1.68B	18.46	7.15%	―	4.05%	-47.49%
ETD	74 Outperform	$735.91M	14.37	10.69%	6.63%	-4.89%	-19.26%
LZB	64 Neutral	$1.42B	15.76	9.09%	2.56%	2.18%	-22.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEG	54 Neutral	$1.22B	8.79	18.68%	2.22%	-6.15%	―
MLKN	53 Neutral	$1.20B	45.68	-1.18%	4.29%	5.37%	-127.27%

Leggett & Platt Corporate Events

Leggett & Platt Sells Aerospace Products Group

On August 29, 2025, Leggett & Platt completed the sale of its Aerospace Products Group to funds managed by Tinicum Incorporated, receiving approximately $250 million in after-tax proceeds. This divestiture is part of Leggett’s strategic focus on aligning with long-term goals, and the proceeds will be used to reduce debt and improve the company’s financial position. The Aerospace Products Group, which generated $190 million in sales in 2024, supplies complex tube and duct assemblies for aircraft and space vehicles. Following the sale, Leggett revised its 2025 financial guidance, adjusting sales and earnings expectations.

The most recent analyst rating on (LEG) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Leggett & Platt stock, see the LEG Stock Forecast page.

Leggett & Platt Reports Q2 2025 Sales Decline

Leggett & Platt reported a 6% decrease in second-quarter sales for 2025 compared to the same period in 2024, with sales totaling $1.1 billion. Despite the decline, the company improved its profitability, with EPS rising to $0.38 and adjusted EPS to $0.30, a slight increase from the previous year. The company reduced its debt by $143 million, strengthening its balance sheet, and amended its credit facility to extend maturity to 2030. Leggett & Platt remains on track to sell its Aerospace business and maintains its full-year sales and adjusted EPS guidance, despite macroeconomic challenges.

The most recent analyst rating on (LEG) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Leggett & Platt stock, see the LEG Stock Forecast page.