Leggett Story

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LEG -- USA Stock  

USD 41.21  0.20  0.49%

As many rational traders are trying to avoid consumer cyclical space, it makes sense to digest Leggett Platt Incorporated a little further and understand how it stands against Fortune Brands and other similar entities. We are going to discuss some of the competitive aspects of both Leggett and Fortune.
Published over a month ago
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Will Fortune Brands shareholders switch to Leggett (NYSE:LEG)?
By analyzing existing technical and fundamental indicators between Leggett Platt and Fortune, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Fortune with a short position in Leggett Platt. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Leggett Platt has an asset utilization ratio of 156.36 percent. This indicates that the company is making $1.56 for each dollar of assets. An increasing asset utilization means that Leggett Platt Incorporated is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Leggett or Fortune is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Leggett Platt dividends

A dividend is the distribution of a portion of Leggett Platt earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Leggett Platt dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Leggett one year expected dividend income is about $0.92 per share.
The current year Dividend Yield is expected to grow to 0.0322, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (220.8 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-204.6 M-220.8 M
Dividend Yield 0.031  0.0322 
Dividends per Basic Common Share 1.58  1.56 
Investing in dividend-paying stocks, such as Leggett Platt Incorporated is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Leggett Platt must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Leggett Platt. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Leggett Platt's Liquidity

Leggett Platt financial leverage refers to using borrowed capital as a funding source to finance Leggett Platt Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Leggett Platt financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Leggett Platt's total debt and its cash.

Correlation Between Leggett and Fortune Brands Home

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Leggett Platt together with similar or unrelated positions with a negative correlation. For example, you can also add Fortune Brands to your portfolio. If Fortune Brands is not perfectly correlated to Leggett Platt it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Leggett Platt for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between LEG and FBHS for more information.

What is driving Leggett Platt Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Leggett Platt revenue. Based on the latest financial disclosure, Leggett Platt Incorporated reported 4.64 B of revenue. This is 34.92% lower than that of the Consumer Cyclical sector and significantly higher than that of the Furnishings, Fixtures & Appliances industry. The revenue for all United States stocks is 50.82% higher than that of the firm. As for Fortune Brands we see revenue of 5.71 B, which is much higher than that of the Furnishings, Fixtures & Appliances

Leggett4.64 Billion
Fortune5.71 Billion
4.6 B
5.7 B

Will price continue to surge in September 2020?

Latest potential upside is at 8.43. Leggett Platt Incorporated exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Leggett Platt Incorporated individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Leggett Platt future systematic risk.

Our Final Take On Leggett Platt

Although many of the other players within the furnishings, fixtures & appliances industry are still a little expensive, even after the recent corrections, Leggett Platt may offer a potential longer-term growth to shareholders. While some shareholders may not share our view, we believe that right now is not a good time to increase your holdings in Leggett. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Leggett Platt.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Leggett Platt Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.

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