Leggett & Platt (LEG) Dividend Stock Analysis

by | Dividend Aristocrats, Dividend Champions

Leggett & Platt Logo

Leggett & Platt Dividend

The Leggett & Platt (LEG) dividend has been paid continuously since 1939 and increased for 48 consecutive years; qualifying the company as a Dividend Aristocrat and Dividend Champion.

Current Dividend Annualized: $1.60

Leggett & Platt (LEG) Intrinsic Value – Margin of Safety Analysis          

(updated February 2021)

Normalized Diluted Earnings Per Share (TTM): $1.70
Cash Flow From Operations (CFO) Per Share (TTM): $4.43
Free Cash Flow Per Share (TTM): $3.95

Estimated Intrinsic Value: $44

Buy Price Based on Required Margin of Safety =  $34
(Required Margin of Safety Based On Risk Stability Grade:
A = 10%, B = 20%, C = 30%, D = 40%, F = 50%)

 

Risk / Stability Grade: C

A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.

B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.

C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.

D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.

F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.

 

Dividend Safety Grade: D

A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.

B grade indicates a very low probability for a dividend cut.

C grade indicates a low probability for a dividend cut and/or average safety risk.

D grade indicates there are issues that should be considered concerning future dividend payments.

F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.

 

Earnings Quality Grade: C

A grade indicates earnings quality is high or far above average.

B grade indicates earnings quality is good and/or above average.

C grade indicates earnings quality is acceptable or average.

D grade indicates earnings quality is poor and requires thoughtful due diligence.

F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.

 

Earnings Report: 12/31/20

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AAAMP Portfolios Position Disclosures:
Treasure Trove Twelve – Long
Dividend Growth & Income – None
Global Dividend Balanced – None
Aggressive Growth Balanced – None
High Income Balanced – None
Global Value – None

Company Description

Sector: Consumer Cyclical
Industry: Home Furnishings & Fixtures

Leggett & Platt designs and produces engineered components and products found in homes, offices, retail stores, automobiles, and commercial aircraft. It operates its business through four segments: residential products, furniture products, industrial products, and specialized products.

Its products include components and machinery, steel infrastructure, furniture and components, and various other products. The company operates all around the world, with the residential products and specialized products segments contributing heavily to the company’s revenue.

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Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.

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