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Leggett & Platt
(NYSE:LEG)
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Rating:54Neutral
Price Target:
$9.50
▼(-14.87% Downside)
Action:Reiterated
Date:08/26/26
The score is held back primarily by weak technicals (broad downtrend and negative momentum) and the significant corporate event of merger completion with NYSE delisting/deregistration. Financial performance is mixed—profitability and leverage improved, but revenue contraction and declining TTM free cash flow temper confidence. Valuation is supportive due to a very low P/E and a modest dividend yield, but it is not enough to offset the trend and event-related risks.
Positive Factors
Profitability Recovery
The return to positive net and operating margins indicates that restructuring, pricing and cost actions are restoring earnings power. Sustained profitability provides a stronger base for reinvestment and debt management, although results remain below prior-cycle peaks.
Negative Factors
Revenue and End-Market Pressure
Persistent sales and volume weakness across bedding and other end markets signals constrained demand rather than a one-period issue. Mattress declines, housing sensitivity, retailer changes and customer losses could limit revenue recovery and operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
The return to positive net and operating margins indicates that restructuring, pricing and cost actions are restoring earnings power. Sustained profitability provides a stronger base for reinvestment and debt management, although results remain below prior-cycle peaks.
Read all positive factors
Leggett & Platt Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down sales figures across various business segments, indicating where the company is generating the most income and potential growth areas.
Breaks down sales figures across various business segments, indicating where the company is generating the most income and potential growth areas.
Data provided by:
The Fly
The FlyLeggett & Platt (LEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.27B
Dividend Yield2.17%
Average Volume (3M)2.52M
Price to Earnings (P/E)5.8
Beta (1Y)1.56
Revenue Growth-8.20%
EPS Growth53.01%
CountryUS
Employees15,900
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)1.58
Shares Outstanding136,588,990
10 Day Avg. Volume1,881,222
30 Day Avg. Volume2,518,251
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.49
Price to Sales (P/S)0.38
P/FCF Ratio5.42
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$10.00Price Target Upside-10.39% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.05
Revenue Forecast (FY)$3.85B
Leggett & Platt Business Overview & Revenue Model
Company Description
Leggett & Platt, Incorporated, founded in Carthage, Missouri, in 1883, operates as a global entity specializing in the engineering, manufacturing, and marketing of a wide array of components and finished goods. The company's operations are strateg...
How the Company Makes Money
Leggett & Platt makes money primarily by manufacturing and selling engineered components and finished component-based products to business customers. Its revenue model is largely product-sales driven: it supplies high-volume, repeat-purchase compo...
Leggett & Platt Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong execution on restructuring, meaningful deleveraging, improved cash flow and operational progress across products and geographies are offset by continued revenue declines, persistent weakness in residential end-markets (particularly Bedding), supply-chain and segment-specific headwinds, and conservative 2026 top-line guidance. Management emphasizes margin and balance-sheet priorities while acknowledging demand uncertainty.Positive Updates
Restructuring Delivered Greater-Than-Expected Benefit
Completed 2024–2025 restructuring with ~ $63 million of EBIT benefit flowing in 2025 and an expected ~$5 million in 2026 for a ~$70 million EBIT run-rate; total restructuring cost ~ $80 million (about half noncash).
Negative Updates
Significant Near-Term Revenue Declines
Fourth quarter sales were $939 million, down 11% versus Q4 2024; full-year 2025 sales were $4.05 billion, down 7% year-over-year, driven by weak residential demand, customer-specific declines and divestitures.
Read all updates
Q4-2025 Updates
Positive
Negative
Restructuring Delivered Greater-Than-Expected Benefit
Completed 2024–2025 restructuring with ~ $63 million of EBIT benefit flowing in 2025 and an expected ~$5 million in 2026 for a ~$70 million EBIT run-rate; total restructuring cost ~ $80 million (about half noncash).
Read all positive updates
Company Guidance
Leggett & Platt guided 2026 sales of $3.8–$4.0 billion (down 1%–6% vs. 2025, with ~3% of the decline from divestitures), with volume expected flat to down low-single-digits (Bedding down low single digits, Specialized down low single digits excluding Aerospace, FF&T flat) and inflation/currency providing a low-single-digit sales tailwind. GAAP EPS is guided to $0.92–$1.38 (including ~$0.02–$0.11 of restructuring costs, ~$0.05–$0.08 of Somnigroup-related costs and ~$0.11–$0.25 of real-estate gains); full-year adjusted EPS is expected to be $1.00–$1.20 (midpoint driven by operational efficiency, favorable mix and full-year metal-margin expansion, partially offset by lower volume). Adjusted EBIT margin is projected at 6.3%–7.0%; cash from operations $225–$275 million (no working-capital benefit assumed); CapEx $100–$115 million; and the company expects normal seasonality with weaker Q1 and Q4. Management also reiterated a ~$70 million restructuring EBIT run‑rate (≈$63M realized in 2025 plus ~$5M in 2026), $70–$80 million of expected real-estate proceeds (≈$48M realized), and plans to use most excess cash flow to reduce net debt after finishing 2025 at 2.4x net debt/adjusted EBITDA en route to a 2.0x target, while retaining capacity for buybacks and small acquisitions.Leggett & Platt Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.89B | 4.06B | 4.38B | 4.73B | 5.15B | 5.07B |
| Gross Profit | 728.00M | 733.30M | 749.10M | 853.80M | 976.80M | 1.04B |
| EBITDA | 449.80M | 483.80M | -287.30M | 94.90M | 668.90M | 785.90M |
| Net Income | 219.40M | 235.40M | -511.50M | -136.80M | 309.80M | 402.40M |
Balance Sheet | ||||||
| Total Assets | 3.60B | 3.54B | 3.66B | 4.63B | 5.19B | 5.31B |
| Cash, Cash Equivalents and Short-Term Investments | 545.80M | 587.40M | 350.20M | 365.50M | 316.50M | 361.70M |
| Total Debt | 1.65B | 1.66B | 2.05B | 2.20B | 2.29B | 2.29B |
| Total Liabilities | 2.52B | 2.51B | 2.97B | 3.30B | 3.54B | 3.66B |
| Stockholders Equity | 1.08B | 1.02B | 689.40M | 1.33B | 1.64B | 1.65B |
Cash Flow | ||||||
| Free Cash Flow | 156.90M | 281.00M | 224.10M | 383.40M | 341.10M | 164.70M |
| Operating Cash Flow | 237.10M | 338.20M | 305.70M | 497.20M | 441.40M | 271.30M |
| Investing Cash Flow | 264.70M | 293.30M | -36.60M | -91.30M | -181.20M | -226.20M |
| Financing Cash Flow | -317.70M | -413.20M | -270.00M | -358.80M | -286.20M | -32.80M |
Leggett & Platt Technical Analysis
Negative
11.16
Price Trends
10.47
Negative
10.40
Negative
10.63
Negative
Market Momentum
-0.32
Positive
36.94
Neutral
14.76
Positive
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 11.16 is above the 20-day moving average (MA) of 9.62, above the 50-day MA of 10.47, and above the 200-day MA of 10.63, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of 14.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEG.
Leggett & Platt Risk Analysis
Leggett & Platt disclosed 18 risk factors in its most recent earnings report. Leggett & Platt reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Leggett & Platt Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.25B | 15.48 | 18.54% | 0.30% | 6.54% | 53.02% | |
74 Outperform | $604.61M | 15.13 | 8.40% | 7.93% | -5.72% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $1.58B | 17.67 | 6.94% | 3.40% | 4.68% | ― | |
56 Neutral | $1.28B | 16.23 | 7.86% | 2.38% | 0.20% | -10.08% | |
54 Neutral | $1.27B | 5.82 | 21.32% | 1.79% | -8.20% | 53.01% | |
51 Neutral | $1.84B | -12.80 | -6.44% | ― | -0.01% | -192.77% |
* Consumer Cyclical Sector Average
LEG
Leggett & Platt
9.20
-0.29
-3.11%
ETD
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23.60
-4.04
-14.61%
MLKN
MillerKnoll
23.33
2.68
12.97%
TILE
Interface
38.70
11.69
43.28%
LZB
La-Z-Boy Incorporated
32.34
-3.59
-9.99%
MBC
MasterBrand Inc
8.84
-4.24
-32.42%
Leggett & Platt Corporate Events
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A TransactionsRegulatory Filings and Compliance
Leggett & Platt Completes Merger and NYSE Delisting
Negative
Aug 26, 2026
On August 26, 2026, Leggett Platt, in connection with the closing of a merger, repaid in full approximately $277,000 of outstanding obligations under its Fifth Amended and Restated Credit Agreement and terminated its long-standing commercial pape...
Business Operations and StrategyM&A Transactions
Leggett & Platt Nears Completion of Somnigroup Merger
Neutral
Aug 25, 2026
On April 13, 2026, Somnigroup International Inc. agreed to merge its wholly owned subsidiary Sparrow Unity Corporation with Leggett Platt, with Leggett Platt surviving as a wholly owned subsidiary of Somnigroup. As of August 25, 2026, all necess...
M&A TransactionsShareholder Meetings
Leggett & Platt Shareholders Approve Somnigroup Merger Agreement
Positive
Aug 21, 2026
On August 20, 2026, Leggett Platt shareholders voted at a special meeting to approve the company’s merger with Somnigroup International Inc., with more than 80% of outstanding shares represented and a strong majority backing the merger agre...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsShareholder Meetings
Leggett & Platt Advances Somnigroup Merger Amid Soft Sales
Neutral
Aug 6, 2026
Leggett Platt reported that second-quarter 2026 sales fell 6% year on year to $1.0 billion, with a 5% drag from 2025 divestitures and organic sales down 1%, as volume slipped 4% amid weak demand across most end markets, retailer changes in adjust...
M&A TransactionsRegulatory Filings and Compliance
Leggett & Platt Merger Clears Key Antitrust Hurdle
Positive
Jun 4, 2026
On April 13, 2026, Leggett Platt agreed to be acquired by Somnigroup International via a merger in which a Somnigroup subsidiary will be merged into Leggett Platt, leaving the company as a wholly owned subsidiary of Somnigroup. The transaction c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.