One-glance verdict
Within fair range
$26.16 our estimate vs market $29.02
Wall Street consensus: $31.72 (21.3% higher than our fair-value estimate)
11% above our estimate
Fundamentals snapshot
Legrand SA
LGRDY · PNK · Industrials · Electrical Equipment & Parts
Current price
$29.02
52-week range
$27.32 - $37.91
Market cap
$38.03B
Balance sheet
Watch
10.77x Adequate
Net debt $6.42B. 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 1.2% above its 5-year average P/E.
What this company does
Legrand SA
Legrand makes the essential electrical and digital parts that bring buildings to life, from light switches and power outlets to data network equipment and electric vehicle chargers. The company primarily earns money by selling these products for both new construction projects and building renovations. This business matters because it's tied to global trends like smart homes and energy efficiency, meaning as buildings become more advanced, Legrand has more opportunities to sell its gear.
How the company got here
Legrand started in 1865 in Limoges, France, as a porcelain workshop making dishes. After a 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 next several decades, it grew by expanding into new countries and buying other companies, adding products like circuit breakers, cable management, and emergency lighting. A key turning point was its return to the stock market in 2006, after which it heavily expanded into digital and data center infrastructure.
What it actually does
Legrand makes the electrical and digital parts that go into buildings to make them functional and smart. Think of the light switches on your wall, the outlets you plug your phone into, and the circuit breaker box in your closet; Legrand makes those. They also sell systems that manage how power, light, and data are delivered and controlled throughout a building, from homes to large data centers. Their products range from simple wiring devices to complex systems for smart homes, electric vehicle charging, and the infrastructure that powers large computer networks.
Essential Building Infrastructure
This is Legrand's traditional and largest business, making up nearly half of its sales. It includes all the fundamental electrical components needed in a building, such as light switches, power outlets, and panels that protect against electrical surges (circuit breakers). Professionals like electricians and construction companies are the main customers, buying these items for new buildings and renovations. This segment is the foundation of the company, providing the essential, everyday products that buildings rely on to function safely.
Data Centers
A large and rapidly growing part of Legrand's business, this segment provides the specialized infrastructure needed to power and cool data centers, which are the buildings that house the computers for the internet and AI. This includes things like power distribution units (think of them as industrial-strength power strips for computer racks), cable management systems to organize the thousands of wires, and cooling solutions. The customers are large tech companies and specialized data center operators who need reliable and efficient power for their vast computing operations. This business is a major focus for the company as the demand for data and AI continues to explode.
Energy Transition
This segment, which accounts for over a fifth of the company's revenue, focuses on products that help make buildings more energy-efficient and support the shift to cleaner energy. This includes things like charging stations for electric vehicles, smart lighting controls that automatically turn off to save power, and systems that help manage a building's overall electricity use. The customers are building owners and developers who want to reduce their energy costs and environmental footprint. This area benefits from the global trend towards electrification and sustainability.
What management is betting on now
Legrand's management is heavily focused on high-growth areas, particularly data centers and products related to the energy transition. They are investing in developing and acquiring new technologies for things like artificial intelligence infrastructure, energy efficiency, and electric vehicle charging. The strategy involves using the cash generated from their stable, traditional electrical products to buy smaller, innovative companies in these faster-growing markets. Management's goal is to shift the company's sales mix so that a larger share comes from these digital and sustainable energy products, which they believe will drive future growth.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $26.16 vs current price $29.02
Wall Street consensus is the average analyst price target: $31.72 (21.3% higher than our fair-value estimate).
Our most-likely fair value is $26.16 a share — about 9.9% away from today's price of $29.02, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $6.4B. Interest coverage 10.8x.
Net debt
$6.42B
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 $8.62B 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 $5.31B 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 $2.35B 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 1.2% 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)
25.02x
Forward P/E
17.83x
P/B
4.52x
P/S
3.76x
EV/EBITDA
19.76x
PEG ratio
1.42x
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
$8.62B
Total cash
$2.20B
Growth
How the business has been compounding
Revenue TTM
$11.28B
Revenue 5Y CAGR
4.4%
EPS TTM
1.16
EPS 5Y CAGR
8.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.76B
Free CF TTM
$1.48B
FCF margin
13.1%
Dividend
Shareholder payout
Yield
1.9%
Payout ratio
47.7%
Last ex-div date
2026-05-28