Leggett & Platt Incorporated Common Stock (LEG)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett-style investor, I ask whether this is a durable business at a sensible price. Leggett & Platt is a 15,900-employee maker of engineered components for bedding and furniture. It has scale and long-standing customer relationships, but steel and foam components are competitive, cyclical, and largely tied to housing and furniture demand, so I see only a narrow moat. The latest filed quarter, fiscal Q2 2026, showed $999.7 million in revenue and $47.1 million in net income, a 4.71% margin. FairStock's calculations at the 2026-08-27 close show a P/E of 5.90, P/B of 1.16, EV/EBITDA of 5.88, and a Graham Number of $16.67, implying a 44.81% margin of safety. Trailing free cash flow is $156.9 million, a 10.0% FCF yield, and the dividend yield is 2.17%. But the balance sheet gives me pause: debt-to-equity is 1.52 and the Altman Z-Score is 1.98, in the grey zone. ROE is 22.64%, yet ROCE is only 4.13%, suggesting leverage flatters equity returns. The Piotroski F-Score is 7/9, which is respectable. The supplied data point to shrinking sales but improving profits, though the growth periods are not named in the data package. This looks like a cheap, financially mixed, cyclical turnaround candidate. I would want to see better returns on capital and debt reduction before calling it a high-quality compounder.

In plain English: Leggett & Platt makes engineered parts and components used in bedding and furniture, from steel wire and springs to adjustable beds and private-label mattresses. In its latest reported quarter, fiscal Q2 2026, it earned $47.1 million on $999.7 million of sales, a modest 4.71% profit margin, while the stock trades near the bottom of its 52-week range. The price looks inexpensive compared with the company's profits and net assets, but the business is cyclical and carries meaningful debt, so it is not a clear-cut bargain.

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Data as of 2026-08-27 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer