Overall Score

Valuation

LEG trades at a low valuation with EV/Sales of 0.62x, P/E of 6.1x, and P/FCF of 8.4x.

The stock also screens inexpensive on earnings yield (16.2%) and free cash flow yield (11.9%).

Balance Sheet Liquidity

Liquidity remains solid with a current ratio of 2.35x and quick ratio of 1.53x.

Leverage is meaningful but manageable, with net debt/EBITDA at 2.45x and debt-to-equity at 1.52x.

Profitability Cash Flow

Margins are modest, with gross margin at 18.7% and net margin at 5.6%.

Cash generation is acceptable but not strong, as operating cash flow margin is 6.1% and free cash flow yield is 11.9%.

Operational Efficiency

Returns are middling, with ROIC at 6.6% and ROA at 6.1%.

Working capital efficiency is reasonable, supported by a cash conversion cycle of 72.1 days.

Risk Factors

Interest coverage is only 3.8x, leaving limited cushion if earnings weaken.

Inventory intensity remains elevated, with days inventory outstanding at 73.6 days and a cash conversion cycle above 70 days.