Leggett & Platt: Down But Not Out From A Historical Perspective

Waterside Insight
820 Followers

Summary

  • Leggett & Platt's topline and bottom line fell, but its cash and cash flow are still sound, and a dividend cut is unlikely in the near term.
  • Its cash conversion cycle is still held up while retained earnings are still at a higher level, and the macro pressure remains but is seen largely priced in.
  • Historically, the company has weathered more volatile periods than where it is currently but managed to grow and expand organically.

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Investment Thesis

Leggett & Platt (NYSE:LEG) has declined from the recent peak performance due to macro pressure, but its overall strength hasn't been impacted. The company's cash flow is still sound and it has room to conserve cash to protect

This article was written by

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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