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Legrand

ENXTPA:LR
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LR
ENXTPA
€19B
Market Cap
  1. Home
  2. FR
  3. Capital Goods
Company description

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The last earnings update was 28 days ago. More info.


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LR Share Price and Events
7 Day Returns
0.4%
ENXTPA:LR
-0.3%
FR Electrical
-2.1%
FR Market
1 Year Returns
43.3%
ENXTPA:LR
37.4%
FR Electrical
16.4%
FR Market
LR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Legrand (LR) 0.4% 1.1% 10.5% 43.3% 38.5% 70.7%
FR Electrical -0.3% 2.3% 13.5% 37.4% 32.7% 50.3%
FR Market -2.1% -0.1% 3% 16.4% 29.5% 44%
1 Year Return vs Industry and Market
  • LR outperformed the Electrical industry which returned 37.4% over the past year.
  • LR outperformed the Market in France which returned 16.4% over the past year.
Price Volatility
LR
Industry
5yr Volatility vs Market

LR Value

 Is Legrand undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Legrand to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Legrand.

ENXTPA:LR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year FR Government Bond Rate -0.1%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ENXTPA:LR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year FR Govt Bond Rate -0.1%
Equity Risk Premium S&P Global 6.1%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.2
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.198 (1 + (1- 33%) (21.94%))
1.25
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.11% + (1.25 * 6.07%)
7.48%

Discounted Cash Flow Calculation for ENXTPA:LR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Legrand is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ENXTPA:LR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.48%)
2020 934.91 Analyst x8 869.84
2021 989.32 Analyst x8 856.41
2022 1,031.50 Analyst x2 830.77
2023 1,058.91 Est @ 2.66% 793.49
2024 1,078.25 Est @ 1.83% 751.76
2025 1,091.68 Est @ 1.25% 708.15
2026 1,100.84 Est @ 0.84% 664.39
2027 1,106.95 Est @ 0.55% 621.58
2028 1,110.88 Est @ 0.36% 580.37
2029 1,113.27 Est @ 0.22% 541.15
Present value of next 10 years cash flows €7,217.00
ENXTPA:LR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €1,113.27 × (1 + -0.11%) ÷ (7.48% – -0.11%)
€14,650.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €14,650.99 ÷ (1 + 7.48%)10
€7,121.65
ENXTPA:LR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €7,217.00 + €7,121.65
€14,338.65
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €14,338.65 / 266.55
€53.79
ENXTPA:LR Discount to Share Price
Calculation Result
Value per share (EUR) From above. €53.79
Current discount Discount to share price of €72.44
= -1 x (€72.44 - €53.79) / €53.79
-34.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Legrand is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Legrand's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Legrand's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ENXTPA:LR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in EUR €3.08
ENXTPA:LR Share Price ** ENXTPA (2019-12-05) in EUR €72.44
France Electrical Industry PE Ratio Median Figure of 8 Publicly-Listed Electrical Companies 17.72x
France Market PE Ratio Median Figure of 406 Publicly-Listed Companies 17.81x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Legrand.

ENXTPA:LR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTPA:LR Share Price ÷ EPS (both in EUR)

= 72.44 ÷ 3.08

23.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legrand is overvalued based on earnings compared to the FR Electrical industry average.
  • Legrand is overvalued based on earnings compared to the France market.
Price based on expected Growth
Does Legrand's expected growth come at a high price?
Raw Data
ENXTPA:LR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.5x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
5.7%per year
France Electrical Industry PEG Ratio Median Figure of 6 Publicly-Listed Electrical Companies 2.61x
France Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

ENXTPA:LR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.5x ÷ 5.7%

4.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legrand is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Legrand's assets?
Raw Data
ENXTPA:LR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in EUR €18.82
ENXTPA:LR Share Price * ENXTPA (2019-12-05) in EUR €72.44
France Electrical Industry PB Ratio Median Figure of 15 Publicly-Listed Electrical Companies 2.26x
France Market PB Ratio Median Figure of 595 Publicly-Listed Companies 1.44x
ENXTPA:LR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTPA:LR Share Price ÷ Book Value per Share (both in EUR)

= 72.44 ÷ 18.82

3.85x

* Primary Listing of Legrand.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legrand is overvalued based on assets compared to the FR Electrical industry average.
X
Value checks
We assess Legrand's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. Legrand has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LR Future Performance

 How is Legrand expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Legrand expected to grow at an attractive rate?
  • Legrand's earnings growth is expected to exceed the low risk savings rate of -0.1%.
Growth vs Market Checks
  • Legrand's earnings growth is positive but not above the France market average.
  • Legrand's revenue growth is positive but not above the France market average.
Annual Growth Rates Comparison
Raw Data
ENXTPA:LR Future Growth Rates Data Sources
Data Point Source Value (per year)
ENXTPA:LR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 5.7%
ENXTPA:LR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 3.9%
France Electrical Industry Earnings Growth Rate Market Cap Weighted Average 10.1%
France Electrical Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
France Market Earnings Growth Rate Market Cap Weighted Average 11.6%
France Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ENXTPA:LR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ENXTPA:LR Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,847 1
2022-12-31 7,396 963 1,010 2
2021-12-31 7,076 1,189 915 13
2020-12-31 6,830 1,138 879 16
2019-12-31 6,569 1,085 826 16
2019-12-05
ENXTPA:LR Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-09-30 6,449 1,171 822
2019-06-30 6,237 1,074 797
2019-03-31 6,102 921 787
2018-12-31 5,997 925 772
2018-09-30 5,970 883 811
2018-06-30 5,836 860 785
2018-03-31 5,647 844 738
2017-12-31 5,521 864 711
2017-09-30 5,303 833 677
2017-06-30 5,242 878 661
2017-03-31 5,148 885 650
2016-12-31 5,019 832 629

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Legrand's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Legrand's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ENXTPA:LR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Legrand Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTPA:LR Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 3.44 3.44 3.44 1.00
2021-12-31 3.42 3.68 3.22 11.00
2020-12-31 3.26 3.54 3.07 13.00
2019-12-31 3.09 3.19 3.04 11.00
2019-12-05
ENXTPA:LR Past Financials Data
Date (Data in EUR Millions) EPS *
2019-09-30 3.08
2019-06-30 2.99
2019-03-31 2.95
2018-12-31 2.89
2018-09-30 3.04
2018-06-30 2.94
2018-03-31 2.76
2017-12-31 2.67
2017-09-30 2.54
2017-06-30 2.48
2017-03-31 2.44
2016-12-31 2.36

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Legrand is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Legrand's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the France market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the France market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Legrand has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LR Past Performance

  How has Legrand performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Legrand's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Legrand's year on year earnings growth rate has been positive over the past 5 years.
  • Legrand's 1-year earnings growth is less than its 5-year average (1.3% vs 10.5%)
  • Legrand's earnings growth has exceeded the FR Electrical industry average in the past year (1.3% vs 1.2%).
Earnings and Revenue History
Legrand's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Legrand Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTPA:LR Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 6,448.70 822.20 1,718.10 304.20
2019-06-30 6,237.20 797.00 1,660.50 293.60
2019-03-31 6,102.00 786.80 1,630.20 279.30
2018-12-31 5,997.20 771.70 1,606.80 276.50
2018-09-30 5,969.90 811.40 1,616.70 279.00
2018-06-30 5,836.00 785.00 1,585.80 270.70
2018-03-31 5,647.20 737.50 1,541.60 260.30
2017-12-31 5,520.80 711.20 1,511.60 252.10
2017-09-30 5,302.60 677.20 1,445.30 240.50
2017-06-30 5,242.10 661.20 1,427.10 240.70
2017-03-31 5,148.10 650.10 1,397.80 242.40
2016-12-31 5,018.90 628.50 1,364.70 237.70
2016-09-30 4,954.20 560.00 1,353.80 232.40
2016-06-30 4,846.60 550.70 1,320.70 224.90
2016-03-31 4,834.80 550.60 1,320.30 221.40
2015-12-31 4,809.90 550.60 1,310.30 216.10
2015-09-30 4,735.50 551.10 1,286.00 209.20
2015-06-30 4,686.20 546.60 1,273.40 206.80
2015-03-31 4,579.50 534.10 1,241.80 197.90
2014-12-31 4,499.10 531.70 1,214.40 193.20
2014-09-30 4,465.70 525.20 1,201.70 195.30
2014-06-30 4,431.00 529.20 1,188.50 193.00
2014-03-31 4,451.80 531.00 1,185.00 196.20
2013-12-31 4,460.40 530.50 1,184.40 197.80
2013-09-30 4,450.50 517.30 1,184.90 197.10
2013-06-30 4,497.00 506.70 1,193.00 201.70
2013-03-31 4,473.40 506.80 1,192.20 198.00
2012-12-31 4,466.70 505.60 1,197.10 197.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Legrand has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Legrand used its assets more efficiently than the FR Electrical industry average last year based on Return on Assets.
  • Legrand's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Legrand's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Legrand has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LR Health

 How is Legrand's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Legrand's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Legrand is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Legrand's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Legrand's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Legrand Company Filings, last reported 2 months ago.

ENXTPA:LR Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 5,033.60 3,890.30 1,451.10
2019-06-30 4,659.00 3,864.50 1,150.30
2019-03-31 4,897.00 3,322.00 1,076.00
2018-12-31 4,597.10 3,311.10 1,023.70
2018-09-30 4,361.30 3,045.60 789.20
2018-06-30 4,206.00 3,018.10 627.00
2018-03-31 4,232.00 2,989.30 823.00
2017-12-31 4,148.10 3,033.20 824.10
2017-09-30 3,971.40 2,987.50 703.40
2017-06-30 3,937.50 2,053.70 621.80
2017-03-31 4,241.20 1,597.70 702.80
2016-12-31 4,066.40 1,886.20 941.70
2016-09-30 3,827.30 1,901.30 751.90
2016-06-30 3,700.60 1,903.60 528.80
2016-03-31 3,854.30 1,882.90 1,092.00
2015-12-31 3,807.40 1,878.80 1,088.40
2015-09-30 3,607.40 1,627.00 604.60
2015-06-30 3,623.70 1,616.50 615.30
2015-03-31 3,865.60 1,640.60 773.70
2014-12-31 3,558.40 1,572.10 729.10
2014-09-30 3,423.60 1,570.50 455.60
2014-06-30 3,197.00 1,790.40 540.30
2014-03-31 3,352.30 1,649.70 566.70
2013-12-31 3,248.70 1,559.80 605.80
2013-09-30 3,173.40 1,575.40 404.60
2013-06-30 3,120.00 1,599.80 276.10
2013-03-31 3,341.80 1,608.90 432.40
2012-12-31 3,190.60 1,560.90 494.30
  • Legrand's level of debt (77.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (45.5% vs 77.3% today).
  • Debt is well covered by operating cash flow (30.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.7x coverage).
X
Financial health checks
We assess Legrand's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Legrand has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LR Dividends

 What is Legrand's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.85%
Current annual income from Legrand dividends. Estimated to be 2.11% next year.
If you bought €2,000 of Legrand shares you are expected to receive €37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Legrand's pays a higher dividend yield than the bottom 25% of dividend payers in France (1.5%).
  • Legrand's dividend is below the markets top 25% of dividend payers in France (4.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ENXTPA:LR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
France Electrical Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 2.4%
France Market Average Dividend Yield Market Cap Weighted Average of 310 Stocks 2.9%
France Minimum Threshold Dividend Yield 10th Percentile 0.9%
France Bottom 25% Dividend Yield 25th Percentile 1.5%
France Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ENXTPA:LR Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 1.68 2.00
2021-12-31 1.60 14.00
2020-12-31 1.53 17.00
2019-12-31 1.45 17.00
2019-12-05
ENXTPA:LR Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-14 1.340 2.104
2018-05-03 1.260 2.159
2017-05-31 1.190 1.912
2016-02-11 1.150 2.222
2015-02-12 1.100 2.166
2014-02-13 1.050 2.414
2013-02-14 1.000 2.620
2012-02-09 0.930 3.304
2011-02-10 0.880 3.312
2010-04-15 0.700 2.650
2010-02-11 0.700 3.008
2010-01-15 0.700 3.320
2009-04-22 0.700 4.038
2008-12-31 0.700 5.284

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Legrand's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Legrand's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Legrand afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Legrand has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LR Management

 What is the CEO of Legrand's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Benoît Coquart
COMPENSATION €2,456,524
AGE 46
TENURE AS CEO 1.8 years
CEO Bio

Mr. Benoît Coquart has been the Chief Executive Officer/General Manager at Legrand SA since February 08, 2018. Mr. Coquart is responsible for the general management of Legrand. Mr. Coquart served as an Executive Vice President of Finance at Legrand SA since December 8, 2015 until February 7, 2018. Mr. Coquart served as an Executive Vice-President of Strategy and Development at Legrand SA until December 8, 2015. Mr. Coquart served as Group Vice President of Strategy and Corporate Development at Legrand since 2010. He served as Investor Relations Advisor at Legrand SA since 1998, Head of Group External Communication since 2002 and then Head of Marketing Wiring Devices and Home Systems since 2006. Since 2007, he served as Head the Corporate Development Unit at Legrand SA. Mr. Coquart joined Legrand immediately after completing his studies in 1997 to manage the Group’s activities in South Korea. Mandates in various subsidiaries of Legrand, including Director of Legrand Seico, Manager of Legrand Data Center Solutions and Representative of Legrand France, President of Cofrel, Imesys, Intervox Systèmes, Legrand Cable Management, Legrand Energies Solutions and Ura. He graduated from the Institut d’Etudes Politiques de Paris (Sciences Po Paris) and the École Supérieure des Sciences Économiques et Commerciales (ESSEC).

CEO Compensation
  • Insufficient data for Benoît to compare compensation growth.
  • Benoît's remuneration is about average for companies of similar size in France.
Management Team Tenure

Average tenure and age of the Legrand management team in years:

1.4
Average Tenure
51
Average Age
  • The average tenure for the Legrand management team is less than 2 years, this suggests a new team.
Management Team

Benoît Coquart

TITLE
Chief Executive Officer
COMPENSATION
€2M
AGE
46
TENURE
1.8 yrs

Franck Lemery

TITLE
Executive VP & CFO
AGE
52
TENURE
0.9 yrs

Antoine Burel

TITLE
Deputy CEO & Executive VP of Group Operations
AGE
57
TENURE
0.9 yrs

Francois-Etienne Poisson

TITLE
Director of Finance & Investor Relations

Bénédicte Bahier

TITLE
Executive Vice President of Human Resources
TENURE
1.9 yrs

Philippe Weber

TITLE
Deputy COO & Group VP - Energy Distribution & Industrial Applications Div

Paolo Perino

TITLE
Chairman of Bticino & Executive VP of Strategy & Dev.
AGE
65

Frédéric Xerri

TITLE
Executive Vice President of Europe
AGE
50

Karine Alquier-Caro

TITLE
Executive Vice President of Purchasing
AGE
47

Jean-Luc Cartet

TITLE
Executive Vice President of Asia-Pacific
Board of Directors Tenure

Average tenure and age of the Legrand board of directors in years:

7.6
Average Tenure
59
Average Age
  • The tenure for the Legrand board of directors is about average.
Board of Directors

Gilles Schnepp

TITLE
Chairman
COMPENSATION
€625K
AGE
61
TENURE
13.8 yrs

Paolo Perino

TITLE
Chairman of Bticino & Executive VP of Strategy & Dev.
AGE
65

Angeles Garcia-Poveda

TITLE
Lead Independent Director
COMPENSATION
€105K
AGE
48
TENURE
7.6 yrs

Éliane Rouyer-Chevalier

TITLE
Independent Non-Executive Director
COMPENSATION
€90K
AGE
66
TENURE
8.6 yrs

Ned Gilhuly

TITLE
Independent Director
AGE
59
TENURE
1.6 yrs

Olivier Bazil

TITLE
Non-Executive Director
COMPENSATION
€64K
AGE
73
TENURE
17 yrs

Benot Valentin

TITLE
Observer
TENURE
15.9 yrs

Christel Bories

TITLE
Independent Non-Executive Director
COMPENSATION
€70K
AGE
55
TENURE
7.6 yrs

Annalisa Elia

TITLE
Independent Director
COMPENSATION
€56K
AGE
53
TENURE
6.6 yrs

Isabelle Boccon-Gibod

TITLE
Independent Director
COMPENSATION
€66K
AGE
51
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Legrand's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Legrand has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LR News

Simply Wall St News

Does Legrand SA (EPA:LR) Create Value For Shareholders?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Legrand:0.13 = €1.2b ÷ (€11b - €2.0b) (Based on the trailing twelve months to June 2019.) Therefore, Legrand has an ROCE of 13%. … How Legrand's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Current liabilities are minimal, limiting the impact on ROCE.

Simply Wall St -

How Has Legrand SA's (EPA:LR) Earnings Fared Against The Long Term Trend

Today I will take a look at Legrand SA's (EPA:LR) most recent earnings update (30 June 2019) and compare these latest figures against its performance over the past few years, as well as how the rest of the electrical industry performed. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 10%, indicating the rate at which LR is growing has slowed down. … You should continue to research Legrand to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for LR’s future growth?

Simply Wall St -

A Note On Legrand SA's (EPA:LR) ROE and Debt To Equity

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Legrand: 17% = €797m ÷ €4.7b (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Legrand Have A Good Return On Equity? … Combining Legrand's Debt And Its 17% Return On Equity Although Legrand does use debt, its debt to equity ratio of 0.83 is still low.

Simply Wall St -

The Legrand (EPA:LR) Share Price Has Gained 46% And Shareholders Are Hoping For More

To wit, the Legrand share price has climbed 46% in five years, easily topping the market return of 38% (ignoring dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over half a decade, Legrand managed to grow its earnings per share at 8.1% a year.

Simply Wall St -

Why Legrand SA (EPA:LR) Is A Dividend Rockstar

Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Legrand has grown its earnings per share at 8.1% per annum over the past five years. It's good to see decent earnings growth and a low payout ratio. Companies with these characteristics often display the fastest dividend growth over the long term - assuming earnings can be maintained, of course. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Next, growing earnings per share and steady dividend payments is a great combination. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Here's Why Legrand (EPA:LR) Can Manage Its Debt Responsibly

Since Legrand does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … This free cash flow puts the company in a good position to pay down debt, when appropriate. … And the good news does not stop there, as its conversion of EBIT to free cash flow also supports that impression!

Simply Wall St -

Is It Time To Consider Buying Legrand SA (EPA:LR)?

This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … LR’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe LR should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

Could Legrand SA's (EPA:LR) Investor Composition Influence The Stock Price?

Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. … Check out our latest analysis for Legrand ENXTPA:LR Ownership Summary, June 8th 2019 What Does The Institutional Ownership Tell Us About Legrand? … General Public Ownership The general public -- mostly retail investors -- own 53% of Legrand.

Simply Wall St -

Is Legrand SA (EPA:LR) Investing Effectively In Its Business?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Legrand: 0.13 = €1.2b ÷ (€11b - €1.8b) (Based on the trailing twelve months to March 2019.) So, Legrand has an ROCE of 13%. … How Legrand's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Legrand SA (EPA:LR): Immense Growth Potential?

Based on Legrand SA's (EPA:LR) earnings update on 31 March 2019, it seems that analyst expectations are fairly bearish, with earnings expected to grow by 5.5% in the upcoming year compared with the higher past 5-year average growth rate of 9.9%. … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of LR's earnings growth over these next few years. … ENXTPA:LR Past and Future Earnings, May 21st 2019 By 2022, LR's earnings should reach €906m, from current levels of €772m, resulting in an annual growth rate of 5.5%.

Simply Wall St -

LR Company Info

Description

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The company offers a range of products and solutions that connect buildings to energy, data, and lighting, such as switches, power sockets, distribution panels, circuit breakers, lighting management products, security systems, trunkings, floor boxes, enclosures, sockets, screen mounts, uninterruptible power supply devices, tubes, ducts, extensions, and others. Its products are used in hotels, offices, data centers, and shopping centers, as well as residential, healthcare, and industrial sectors. The company was founded in 1865 and is headquartered in Limoges, France.

Details
Name: Legrand SA
LR
Exchange: ENXTPA
Founded: 1865
€19,228,757,642
266,547,791
Website: http://www.legrand.com
Address: Legrand SA
128, avenue du Maréchal de Lattre de Tassigny,
Cedex,
Limoges,
Limousin, 87045,
France
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTPA LR Ordinary Shares Euronext Paris FR EUR 17. Jul 2000
OTCPK LGRV.F Ordinary Shares Pink Sheets LLC US USD 17. Jul 2000
DB LRC Ordinary Shares Deutsche Boerse AG DE EUR 17. Jul 2000
LSE 0MW7 Ordinary Shares London Stock Exchange GB EUR 17. Jul 2000
WBAG LR Ordinary Shares Wiener Boerse AG AT EUR 17. Jul 2000
BMV LR N Ordinary Shares Bolsa Mexicana de Valores MX MXN 17. Jul 2000
ETLX LRC Ordinary Shares Eurotlx IT EUR 17. Jul 2000
BATS-CHIXE LRP Ordinary Shares BATS 'Chi-X Europe' GB EUR 17. Jul 2000
OTCPK LGRD.Y UNSPONSORED ADR Pink Sheets LLC US USD 21. Oct 2014
Number of employees
Current staff
Staff numbers
38,644
Legrand employees.
Industry
Electrical Components and Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/05 21:15
End of day share price update: 2019/12/05 00:00
Last estimates confirmation: 2019/11/27
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.