Legrand LR.PA
Legrand manufactures and distributes electrical and data equipment for buildings, focusing on energy efficiency and infrastructure solutions. Legrand has acceptable financial health (6.13) and solid business quality (6.38), but its valuation is demanding (P/E 27.29, EV/EBITDA 18.55) and momentum is very weak (1.58), limiting short-term appeal.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Legrand manufactures and distributes electrical and data equipment for buildings, focusing on energy efficiency and infrastructure solutions. Legrand has acceptable financial health (6.13) and solid business quality (6.38), but its valuation is demanding (P/E 27.29, EV/EBITDA 18.55) and momentum is very weak (1.58), limiting short-term appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.8 |
| Quality / Moat | 6.4 |
| Valuation | 4.2 |
| Growth | 6.9 |
| Dividend | 6.6 |
| Momentum | 1.6 |
| Risk & Context | 5.2 |
OVERALL SCORE: 5.3/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and the ECB's rate hike increase financing costs and reduce the present value of future cash flows for an industrial company with moderate debt (ND/EBITDA 2.59). However, the effect is limited as it is not an extreme duration or highly leveraged company.
News considered in the analysis
- Is Stride (LRN) A Bargain After Its Recent Pullback? — Artículo de análisis genérico sobre una empresa distinta (Stride Inc.), sin información nueva sobre Legrand.
- Legrand (ENXTPA:LR) Stock Looks Fully Priced On Cash Flow Estimates — Opinión de valoración de Simply Wall St. que sugiere que el precio ya descuenta los flujos de caja futuros; es una visión subjetiva, no un hecho material.
- Q2 Earnings Outperformers: Stride (NYSE:LRN) And The Rest Of The Digital Media & Content Platforms Stocks — Artículo sobre resultados de otra empresa (Stride Inc.), sin relevancia para Legrand.
- 3 Reasons We Love Stride (LRN) — Artículo de opinión positiva sobre otra empresa (Stride Inc.), sin impacto en Legrand.
- Chime Financial (CHYM) Moves Deeper into Banking with $590 Million Stride Acquisition — Noticia sobre la adquisición de Stride por Chime Financial, sin relación con Legrand.
Verdict: Hold; business quality and a moderate dividend offer support, but the valuation is not cheap enough to offset weak momentum.
Main risk: The main risk is the demanding valuation (P/E 27.29, EV/EBITDA 18.55) in a rising interest rate environment, which could compress the multiple if earnings do not grow as expected.
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