LZB - Leggett & Platt: Lower Sales And Worsening Margins Are Bad News For This King
2024-04-14 03:57:07 ET
Summary
- Leggett & Platt, Inc. is facing lower sales, shrinking margins, and declining return on invested capital, putting its dividend king status at risk.
- The company has years ahead before it can see any growth in sales.
- The well-diversified product line does provide some strength for facing uncertain times.
- Years of underperformance in both business and stock have become the norm and will probably continue.
Investment Thesis
Years of lower sales, shrinking ROIC, and declining margins add to the many risks ahead for Leggett & Platt, Incorporated (LEG). This Dividend King could even lose its crown if their situation does not improve.
Bedding And Bedding Accessories
Leggett & Platt is a company that makes various consumer-discretionary products, particularly bedding products like mattress springs, adjustable beds, steel rods, and others.
They also offer home furniture products with recliner mechanisms, chair controls, and carpet cushions, among other things....
Leggett & Platt: Lower Sales And Worsening Margins Are Bad News For This King