One-glance verdict
Overvalued
$22.80 our estimate vs market $31.26
Wall Street consensus: $32.13 (40.9% higher than our fair-value estimate)
37% above our estimate, beyond the bull case
Fundamentals snapshot
Legrand SA
LGRDY · PNK · Industrials · Electrical Equipment & Parts
Current price
$31.26
52-week range
$28.73 - $37.91
Market cap
$40.97B
Balance sheet
Watch
10.77x Adequate
Net debt $6.60B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 9.6% last year.
- Reward Returns 18.2% on equity, ahead of 33% of its peers.
- Risk Net debt grew 86.6% over 3 years.
- Risk Stock trades 9.9% above its 5-year average P/E.
What this company does
Legrand SA
Legrand creates an entire ecosystem (a group of products designed to work together) of electrical and digital parts for buildings, from light switches and EV chargers to data networks. The company primarily makes money selling these systems for new construction and building renovations around the world. This business is significant because its products are fundamental to modernizing buildings for energy efficiency and connectivity.
How the company got here
Legrand started in 1865 in Limoges, France, as a porcelain workshop making dishes. After a factory fire in 1949, the company decided to focus only on electrical wiring devices like switches and sockets, using its porcelain expertise for insulation. Over the decades, it grew by buying other companies, expanding from simple switches to a huge range of electrical and digital products for buildings. A key moment was acquiring Italian competitor Bticino in 1989, which significantly expanded its international presence. Today, Legrand is a global company operating in about 90 countries, having become a major player through many such acquisitions.
What it actually does
Legrand makes the electrical and digital parts that go into buildings to make them functional and smart. Think of all the things you use for electricity and data that are installed in the walls, ceilings, and floors: light switches, power outlets, and the boxes they sit in. They also make systems that manage how power is distributed, like circuit breaker panels, and products for data networks, such as data ports and server racks for IT closets. More recently, they've moved into smart home devices, electric vehicle chargers, and energy-efficient lighting controls.
Products with enhanced value in use
This is Legrand's fastest-growing business area, making up more than half of its sales. It includes all the modern, 'smarter' electrical products that buildings need today. A big part of this is equipment for data centers (the buildings that power the internet and cloud computing), which need lots of specialized power and cooling management. It also includes energy-efficient products like smart lighting controls and electric vehicle charging stations, as well as connected devices for smart homes and offices. Customers for these products are often businesses and builders focused on technology and sustainability.
Essential electrical infrastructures
This is the company's traditional and foundational business, representing just under half of its sales. This segment includes the fundamental electrical products that every building needs to simply turn the lights on and use appliances safely. You would recognize these as standard light switches, wall sockets, circuit breakers, and the plastic or metal tubing (called trunking) that protects and hides electrical wires. The main customers are electricians, building contractors, and distributors who buy these essential components for new construction and renovation projects.
What management is betting on now
Management is focused on growing in areas powered by major trends like digitalization and energy efficiency. This means they are heavily investing in products for data centers, which are in high demand due to the growth of cloud computing and artificial intelligence. They are also pushing into energy-saving solutions and products for building electrification, such as electric vehicle chargers, to meet the growing demand for sustainability. A key part of their strategy is to keep acquiring smaller, specialized companies to gain new technologies and market share in these high-growth areas.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $22.80 vs current price $31.26
Wall Street consensus is the average analyst price target: $32.13 (40.9% higher than our fair-value estimate).
Our most-likely fair value is $22.80 a share — about 27.0% below today's price of $31.26, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $6.6B. Interest coverage 10.8x.
Net debt
$6.60B
Interest coverage
10.77x
Legrand SA's profit covers its interest bill about 10.8 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
LGRDY
BASELINE
Legrand SA
Total debt $8.87B Interest coverage 10.77x This is the baseline the peer rows are being compared against.
Total debt $21.33B Interest coverage 21.61x +101% vs LGRDY Carries about 2.0x more debt cushion than LGRDY.
Total debt $5.56B Interest coverage 18.86x +75% vs LGRDY Carries about 1.8x more debt cushion than LGRDY.
Total debt $2.31B Interest coverage 23.51x +118% vs LGRDY Carries about 2.2x more debt cushion than LGRDY.
Total debt $3.61B Interest coverage 9.12x -15% vs LGRDY Carries about 1.2x less debt cushion than LGRDY.
Total debt $1.63B Interest coverage 8.22x -24% vs LGRDY Carries about 1.3x less debt cushion than LGRDY.
What you should know
The case for and against LGRDY
3 Rewards
3 Risks
Rewards
-
Revenue grew 9.6% last year.
-
Returns 18.2% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 86.6% over 3 years.
-
Stock trades 9.9% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
27.18x
Forward P/E
18.85x
P/B
4.70x
P/S
4.05x
EV/EBITDA
20.88x
PEG ratio
1.51x
Profitability
How much profit each dollar creates
Gross margin
50.2%
Operating margin
19.0%
Net margin
13.0%
ROE
18.2%
ROA
6.6%
Health
Liquidity and balance-sheet strength
Debt / equity
1.03x
Current ratio
1.58x
Quick ratio
1.09x
Total debt
$8.87B
Total cash
$2.26B
Growth
How the business has been compounding
Revenue TTM
$11.60B
Revenue 5Y CAGR
4.4%
EPS TTM
1.15
EPS 5Y CAGR
8.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.81B
Free CF TTM
$1.52B
FCF margin
13.1%
Dividend
Shareholder payout
Yield
1.8%
Payout ratio
47.7%
Last ex-div date
2026-05-28