Leggett & Platt Incorporated Common Stock (LEG)

FairStock Score: 72/100 — STEADY

Key Financials

Strengths

• Generates $309 million in annual free cash flow (19.7% yield on market cap)
• High return on equity of 27.5% demonstrating efficient capital deployment
• FairStock composite score of 72/100 places it in the top tier across value, quality, and momentum factors
• Established organization with 15,900 employees providing operational scale

Concerns

• Revenue declining at 11.2% year-over-year signals potential demand weakness or market share loss

AI Analysis

Leggett & Platt Incorporated Common Stock is a micro-cap consumer cyclical company valued at $1.6 billion. The business generates $4.1 billion in annual revenue with a 0.6% net margin and $309 million in free cash flow. From a quality standpoint, Leggett shows Altman Z-Score of 1.9 in the grey zone and strong 27% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 6.7x, with offers a 32% margin of safety vs Graham Number of $17. Growth dynamics show revenue growing at -11.2% and profit growth of 77.5%. The 1.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 72/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Leggett's consistent 27% ROE at just 7x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $309 million in annual free cash flow (19.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer