LEG

Leggett & Platt Inc

Consumer, Industrial/Transportation


Presented:01/25/2017
Price:$48.60
Cap:$6.77B
Current Price:$13.13
Cap:$1.76B

Presented

Date01/25/2017
Price$48.60
Market Cap$6.77B
Ent Value$7.10B
P/E Ratio17.74x
Book Value$8.24
Div Yield0.03%
Shares O/S139.40M
Ave Daily Vol871,707
Short IntN/A

Current

Price$13.13
Market Cap$1.76B
Leggett & Platt, Inc. is engaged in manufacturing and distribution of furniture and engineered components and products among homes, offices, automobiles and commercial aircraft. It operates through the following business segments: Residential Furnishings, Commercial Products, Industrial Materials and Specialized Products. The Residential Furnishings segment offers products such as innersprings for mattress, wire forms for mattress foundations, steel mechanisms, and hardware, springs and seat suspensions for chairs, sofas, love seats, as well as structural fabrics, carpet cushion, and geo components. The Commercial Products segment involves in the design, manufacture, and distribution of components and finished products for the office seating, and specialty retail markets such as fashion, and adjustable beds. The Industrial Materials segment provides wire products such as drawn wire, fabricated wire and steel rod. The company was founded J. P. Leggett and C. B. Platt in 1883 and is headquartered in Carthage, MO.

Publicly traded companies mentioned herein: Herman Miller Inc (MLHR), La-Z-Boy Inc (LZB), Leggett and Platt Inc (LEG), Mohawk Industries Inc (MHK), Select Comfort Corp (SCSS), Tempur Sealy International Inc (TPX)

Highlights

The presenter is short shares of Leggett and Platt (LEG), expecting both margins and utilization to decline from current peak levels, driven in part by steel pricing headwinds. In addition, he views LEG’s key end markets as challenged, and sees little evidence to support the bull thesis, which he feels exaggerates the opportunity in the auto seat business and the ability for the company to continue delivering peak performance. He sees LEG shares with downside risk of ~20% - 25% over the next 12 months, and the possibility of a catalyst as soon as the next earnings announcement as certain one-time benefits disappear and underlying financials are more “exposed.” He ultimately targets $37 for LEG shares, down from $48 today.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.