Leggett & Platt Inc.: Could This Be An All-In-One Stock?

Summary

  • Q4 figures give an overview of the company’s satisfying position
  • Acquisitions seem to be a winning formula for healthy margins
  • While not alarming, uncertainties start to rise on multiple levels

With everything a consumer buys, it’s easy to forget about the “little things”. But those so-called little things, are often essential components to many of our daily tasks. From furniture to car components, passing by flooring and heavy machinery, Leggett & Platt (LEG) really built a name of their own. Now stacking an impressive 47 years of consecutive dividend increase, they are surely on their way to earn this dividend king title. Recent performance is encouraging, translated in higher sales and healthier margins. As an investor, I would gladly take some more time to dig into this stock.

Understanding the Business

Leggett & Platt Inc. started its operations in 1883, in Missouri. The company originally manufactured steel coil bedsprings, a leader in the industry. Today, as needs evolved, LEG conceives and produces a wide variety of components. It is organized into 14 business units, gathered under four major segments; residential products, industrial products, furniture products, and specialized products.

Products which can be found in LEG’s businesses vary from bedding components, wires and rods, furniture parts, automotive components, aerospace products and more.

(Click on image to enlarge)

Over the years, the company gathered several patents and trademarks. Many of them are directly resulting of their aggressive acquisition business strategy. Since the 60’s, LEG completed 289 acquisitions to help them grow and diversify their product offer. Their most recent acquisition comes from Elite Comfort Solutions on January 16th. The company is specialized in foam manufacturing for bedding and furniture industry.

As of early 2018, LEG had 130 manufacturing facilities, in addition to various administrative ones. 60% of the manufacturing is done in the US, with the rest spread around the world.

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Disclosure: We do not hold LEG in our DividendStocksRock portfolios.

Disclaimer: Each month, we do a review of a specific industry at our membership website; Dividend Stocks Rock. In addition to ...

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