Monty Rakusen
Leggett & Platt (NYSE:LEG), once a reliable dividend growth company with a rock solid reputation as a stalwart of American manufacturing, has come up against its greatest test in history as a perfect storm of unfavorable business
Leggett & Platt: Down And Nearly Out
Summary
- Leggett & Platt's dividend cut and mounting debt signal a severe decline, exacerbated by misguided acquisitions and stiff overseas competition.
- Restructuring efforts, including facility closures, have not offset declining sales and market share losses, with further downturn expected in 2025.
- Valuation metrics indicate a value trap, with little hope of recovery to past share prices due to constrained market conditions.
- The company's divestiture of the Aerospace Products Group underscores its financial struggles, making it a SELL until secular sales trends improve.
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