Reading LEG? Track it free: the weekly brief, plus an alert if the thesis breaks. No credit card.
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NYSEConsumer DiscretionaryFurnishings, Fixtures & AppliancesSnapshot 2026-06-16
Recent financial performance sits below its industry cohort — worth keeping an eye on, though it has not freshly broken.
Recent financial performance is neutral. Earnings quality is fragile, and management is volatile. Risk is elevated, and the sector backdrop is a headwind. Compared with sector peers, LEG is typical. Peer multiples imply a price about 29% above where it trades (it looks cheap on this basis); the read is cheap, value-trap risk. This pattern occurs because it trades below peer multiples, but recent financials are weak or earnings quality is fragile. The read is provisional.
Daily closes. Earnings/event dots are placed inline.
A consensus fair price across 7 valuation methods, at three horizons. Current price $10.77. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
No-growth: today's peer multiple on trailing earnings. The headline read.
Embeds projected growth. Leans optimistic by design. Upside context.
We take the 12-month fair value above and grade our own number — how the market prices this name versus what we'd justify, and where the two diverge.
At $11 LEG trades at 11× p/e, below its 15× p/e peer median. Our $15 fair value sits above the price; high confidence. Not investment advice.
One valuation read at a 12-month horizon, plus how price compares to peers and the company's own history.
The price implies about 29% below a flat-multiple fair value, below our forecast of about -9%. This describes what's priced in, not a forecast of the move.
Only weak execution quality — not the full expensive x weak x turbulent stack.
For similar setups historically (n=20,154): about 33% saw a 20%+ drawdown, and roughly 76% of those did not recover within the year. These are historical base rates for the cohort, not a forecast of this stock.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 48% of the time over the next year (vs 64% for the rest of the cohort, n=3804).
Over the trailing year it converted 1.22x of net income into operating cash flow. Historically, Consumer Discretionary names rated fragile grew net income 45% of the time over the next year (vs 58% for the rest of the cohort, n=2427).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity, the US dollar.
The next print and the backdrop around it (sector regime and the AI cycle). Context for the path, not a forecast of returns.
EPS estimate $0.30 → $0.26 (-12.5% / 30d). 0 raised, 4 cut, 4 covering analysts.
0 upgrades, 0 downgrades / 30d. 0% of analysts rate Buy.
1 positive, 1 negative / 30d. See F4 management tile for the event list.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
A guidance track record builds as the company issues and delivers on guidance.
What a normal day, a bad day, and the worst of the last year would mean for a $10,000 position.
On a typical day, $10k can swing ±$173.
How much price usually moves either way.
On a bad day, this stock has moved -$361.
A rough but not unusual down day (about the 95th percentile).
In the worst 12 months, $10k could have lost $2,851.
Deepest peak-to-trough drop in the last year.
Past results, not a forecast. Not investment advice.
The most important moves since the prior daily snapshot.
No material changes since the prior snapshot.
as of 2026-06-16
Specific, dated things to watch for, each with what would confirm it and what would prove it wrong.
Why it matters: More declines would show ongoing problems in the residential market. This would hurt Leggett & Platt's sales.
Confirms:Reports show the U.S. mattress market declines by more than 10% year over year.
Disproves:Reports indicate stabilization or growth in the U.S. mattress market.
Recent news graded against this company's own objectives — whether it reinforces or challenges the thesis, and how confirmed it is.
No graded news catalysts for LEG yet.
Conditional scenarios: if X happens, the view would shift in this direction. These are not predictions.
Recent SEC 8-K filings ranked by likely impact, confidence, and recency.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. The amendment and restatement of the Company’s Flexible Stock Plan (the “ Plan ”) was approved by shareholders at the Annual Meeting of Shareholders held May 21, 2026. The Plan provides for the award of stock-based and other benefits (including stock options, stock appreciation rights, restricted stock, stock units, cash and equity performance awar…
Whether the overall read has been drifting up or down lately, and how it's changed since last week.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Long-thesis check; widest uncertainty.
Looks cheaper than most peers in the same business.
Around its own typical valuation.
Trailing four: 2025-Q1, 2025-Q2, 2025-Q3, 2026-Q1
A side-by-side read on sector standing, valuation, and risk versus Home Furnishings.
| Stock | Sector standing | Valuation | Risk |
|---|---|---|---|
LEG Leggett & Platt | Typical Show detailsSector percentile: 56 of 100 | inexpensive | elevated |
SGI Somnigroup International | Below typical Show detailsSector percentile: 29 of 100 | expensive | moderate |
MHK Mohawk Industries | Above typical Show detailsSector percentile: 86 of 100 | fair | moderate |
ALH Alliance Laundry Holdings, Inc. | — | expensive | moderate |
LZB La-Z-Boy, Inc. | Above typical Show detailsSector percentile: 83 of 100 | fair | moderate |
6 material management or governance events in the past 24 months, led by M&A activity. Historically, Consumer Discretionary names rated volatile grew net income 58% of the time over the next year (vs 54% for the rest of the cohort, n=486).
Not investment advice. As of 2026-06-16.
via XLY
Tailwind = sector leading the S&P 500; headwind = trailing. Both can be constructive. Historically, headwind regimes have averaged stronger forward returns than tailwind.
Context label only: describes the market state (e.g. real bear vs narrative panic, healthy uptrend vs late-stage froth). It is not a per-ticker buy/sell signal and does not predict factor performance.
Not investment advice. As of 2026-06-16.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Leggett & Platt aims to finalize its merger with Somnigroup International by the end of 2026, subject to customary closing conditions.
Newly stated in 2026-Q1. The merger with Somnigroup is expected to close by year-end 2026. This strategic move is aimed at enhancing consumer-centric innovation and expanding addressable markets. The financials do not yet reflect any impact from this pending transaction.
“The transaction is anticipated to close by year-end 2026, subject to customary closing conditions.”
Leggett & Platt continues to emphasize cost management and operational efficiency to improve profitability.
Stated in 4 of last 4 quarters. Operating cash flow was negative $56 million in 2026-Q1, reflecting challenges in achieving cost efficiency. Despite restructuring efforts, financial results show limited progress in improving cash flow and profitability.
Leggett & Platt aims to enhance shareholder returns by maintaining consistent dividend payments.
Stated in 3 of last 3 quarters. Dividends were $7 million in 2026-Q1, consistent with previous quarters. This reflects a stable approach to shareholder returns, though financial performance challenges persist.
Focus on enhancing cash flow from operations to support business activities.
Why it matters: Shareholder approval is crucial for the merger to proceed. It impacts future growth and value for shareholders.
Confirms:Shareholders vote yes on the merger with Somnigroup.
Disproves:Shareholders vote no on the merger with Somnigroup.
Why it matters: Earnings results will show if the company is improving or struggling. A miss would confirm ongoing issues.
Confirms:Q2 earnings per share falls below the consensus estimate.
Disproves:Q2 earnings per share meets or exceeds the consensus estimate.
Why it matters: Improved cash flow is key for Leggett & Platt's financial health. It could signal recovery from recent challenges.
Confirms:Operating cash flow for Q2 2026 turns positive compared to Q1 2026.
Disproves:Operating cash flow remains negative in Q2 2026.
Why it matters: Better earnings would show recovery from recent drops. It would also support management's cost efforts.
Confirms:Q2 2026 adjusted EPS exceeds $0.15, showing improvement from Q1.
Disproves:Q2 2026 adjusted EPS stays below $0.15. This shows ongoing weakness.
Why it matters: Improving cash flow is crucial for financial health. It shows the company is managing costs better.
Confirms:Cash flow from operations increases to above 40% of revenue.
Disproves:Cash flow from operations remains below 30% of revenue.
Why it matters: The new CEO's plans could change how the company works and performs.
Confirms one read:Positive news or changes in plans came after the CEO change.
Confirms the other:Bad news or no clear plans came after the CEO change.
Why it matters: Higher transportation costs may hurt profits. How the company handles this matters.
Confirms:Leggett & Platt shares a plan to handle rising transportation costs well.
Disproves:Leggett & Platt warns of more margin loss due to transportation costs.
Why it matters: Shareholder returns show that management trusts cash flow and profits. This affects how investors feel.
Confirms:A dividend increase or a share buyback program is announced.
Disproves:There is no news about higher dividends or buybacks.
Why it matters: Good cost management is important for better cash flow and profits in this tough market.
Confirms:Management says they are doing well at cutting costs. They are also working on being more efficient.
Disproves:Management says they have problems with cost management. Costs are also going up.
Why it matters: Better margins mean the company is managing costs well. This shows good efficiency.
Confirms:Gross profit margins improve from the current level of 170.7M.
Disproves:Gross profit margins decrease further from 170.7M.
Why it matters: Stable cash flow is important for running the business. It helps with shareholder returns.
Confirms:Cash from operations is now positive after being -$56.1M.
Disproves:Cash from operations is still negative or getting worse.
Other Events. As previously disclosed, on April 13, 2026, Leggett & Platt, Incorporated, a Missouri corporation (the “Company”) and Somnigroup International Inc., a Delaware corporation (“Parent”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among Parent, Sparrow Unity Corporation, a Missouri corporation and a direct, wholly owned subsidiary of Parent (“Merger Sub”), and the Company, pursuant to which, subject to the terms and conditions of the Merger Agreeme…
Results of Operations and Financial Condition. On May 7, 2026, Leggett & Platt, Incorporated (the “ Company ”) issued a press release announcing its financial results for the first quarter ending March 31, 2026 and related matters. The press release is attached as Exhibit 99.1 and is incorporated herein by reference. This information is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”), or other…
Termination of a Material Definitive Agreement. On May 20, 2026, Karl G. Glassman, the Company’s President and Chief Executive Officer, delivered a notice of termination of the Aircraft Time Sharing Agreement (the “ Agreement ”) previously entered into between the Company’s wholly-owned subsidiary, L&P Transportation LLC, and Mr. Glassman. The termination will be effective May 30, 2026, in accordance with the terms of the Agreement. The Agreement was dated May 20, 2024, and was filed May 21,…
Entry into a Material Definitive Agreement. On April 13, 2026, Somnigroup International Inc., a Delaware corporation (“ Parent ”), and Leggett & Platt, Incorporated, a Missouri corporation (the “ Company ”), entered into an Agreement and Plan of Merger (the “ Merger Agreement ”), by and among Parent, Sparrow Unity Corporation, a Missouri corporation and a direct, wholly owned subsidiary of Parent (“ Merger Sub ” and together with Parent, the “ Parent Parties ”), and the Company, pursuant to w…
“Restructuring actions implemented over the past two years continued to deliver EBIT benefits.”
“We are pleased the restructuring plan we launched in early 2024 was substantially completed by the end of 2025.”
“Our teams executed our strategic priorities, including strengthening our balance sheet, improving operational efficiency.”
“We made significant progress on our deleveraging efforts, reducing our debt and lowering our net debt leverage ratio.”
“Dividends were $7 million in the first quarter, flat versus last year’s first quarter dividend.”
“In November, Leggett & Platt’s Board of Directors declared a fourth quarter dividend of $.05 per share, flat versus last year’s fourth quarter dividend.”
“Dividends were $27 million, flat versus last year.”