LEG
Leggett & Platt, Incorporated (LEG) Management Analysis (2026)
Overall Score
Capital Allocation
Management is balancing dividends and capex with a modest payout ratio of 12.4% and dividend yield of 2.1%.
Leverage remains manageable but not low, with net debt to EBITDA at 2.45x and interest coverage at 3.77x.
Free cash flow conversion is solid, with free cash flow to operating cash flow at 66.2% and FCF yield at 11.9%.
Execution Operating Discipline
Operating performance remains acceptable, with ROIC at 6.6% and operating ROA at 6.7%.
Working capital efficiency is reasonable, supported by a current ratio of 2.35 and cash conversion cycle of 72.1 days.
Margins are modest but stable, with gross margin at 18.7% and operating margin at 6.1%.
Balance Sheet Stewardship
Liquidity looks healthy, with a quick ratio of 1.53 and cash ratio of 0.70.
Debt remains meaningful, with debt to equity at 1.52x and debt to capital at 60.3%.
The company still has positive working capital of $1.05B, which supports near-term flexibility.
Sources
- Company filings (10-K, 10-Q, investor presentations)
- Financial and market data providers
- Public news and industry information
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