# Legrand (LR.PA)

Canonical: https://gigainvestors.com/s/LR.PA

Analysis as of: 2026-10-16T07:34:06.339Z. Financial observations: FY2003–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 133.70 per share; close as of 2026-10-15.

Estimated value: low EUR 67.23 per share, central EUR 75.58 per share, high EUR 86.68 per share. Buy at or below the central value EUR 75.58 per share. Valuation as of 2026-10-16T07:34:06.339Z; scenarios are not confidence intervals.

Expected annual return: 6.7% at the stated quote. About 6.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; FR 10-year bond 4.8% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.06×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.19×

- FY2017: 0.19×

- FY2018: 0.19×

- FY2019: 0.19×

- FY2020: 0.17×

- FY2021: 0.19×

- FY2022: 0.17×

- FY2023: 0.19×

- FY2024: 0.19×

- FY2025: 0.21×

### moat: pass

- ROIC, median of available years: 32.2%

- ROIC, second-lowest year: 29.7%

- Typical minus recent gross margin: 1.2 pp

- Typical gross margin (annual median): 52.0%

- Recent gross margin (lower of latest and 3-year median): 50.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.9%

- ROIC including acquisitions, ten-year median: 11.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 36.7%

- FY2017: 32.2%

- FY2018: 32.0%

- FY2019: 29.7%

- FY2020: 28.1%

- FY2021: 32.3%

- FY2022: 31.3%

- FY2023: 36.3%

- FY2024: 33.4%

- FY2025: 38.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.11×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 6.0B

- Net income, five-year total: EUR 5.5B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 2.3 pp

- Working capital / revenue, final three-year average: 16.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.24×

- FY2022: 1.12×

- FY2023: 1.05×

- FY2024: 1.07×

- FY2025: 1.08×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 32.2% vs 36.3%

- Per-share earnings: 2.36 to 4.43 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.5%

- Market cap gain: EUR 19B

- Cumulative retained earnings: EUR 3.9B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.2%

- Per-share value change: EUR 2.07

- Per-share value, starting three-year median: EUR 2.36

- Per-share value, ending three-year median: EUR 4.43

- Buybacks concentrated in cheaper years (correlation): 0.27

- Average buyback yield: 0.5%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 5.8B

- Cumulative net income, 10 years: EUR 9.1B

- ROIC, first three-year median: 32.2%

- ROIC, last three-year median: 36.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 2.36

- FY2017: EUR 2.66

- FY2018: EUR 2.89

- FY2019: EUR 3.13

- FY2020: EUR 2.55

- FY2021: EUR 3.38

- FY2022: EUR 3.75

- FY2023: EUR 4.35

- FY2024: EUR 4.43

- FY2025: EUR 4.77

### accounting: pass

- Sloan accruals: -1.9%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.27×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.40×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.5%

- FY2017: -1.6%

- FY2018: -1.5%

- FY2019: -3.4%

- FY2020: -3.7%

- FY2021: -1.5%

- FY2022: -1.6%

- FY2023: -4.6%

- FY2024: -2.2%

- FY2025: -1.9%

## Holders

## Price story

Price needs cash profits to grow 8.6% a year for ten years · sales +9.6%

Story as of 2026-10-16T09:59:59.144Z; price observation 2026-10-15.

Price needs cash profits to grow 8.6% a year for ten years

- 2025-05-07: Legrand Hiking Prices to Mitigate U.S. Tariff Impact, CEO Says ([finance.yahoo.com](https://finance.yahoo.com/m/c4640005-fb54-34c9-bade-06e89db24b9a/legrand-hiking-prices-to.html))

- 2026-09-29: Legrand jumps 7% on raising 2030 growth, margin targets on AI data centre demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/legrand-jumps-7-raising-2030-090318592.html))

### Sales · FY2024–2025

sales +9.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 5.0B 

- FY2017: EUR 5.5B 

- FY2018: EUR 6.0B 

- FY2019: EUR 6.6B 

- FY2020: EUR 6.1B 

- FY2021: EUR 7.0B 

- FY2022: EUR 8.3B 

- FY2023: EUR 8.4B 

- FY2024: EUR 8.6B 

- FY2025: EUR 9.5B 

### Gross margin · FY2025

gross margin 50.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 52.6% 

- FY2017: 52.4% 

- FY2018: 52.1% 

- FY2019: 51.9% 

- FY2020: 52.2% 

- FY2021: 50.8% 

- FY2022: 49.7% 

- FY2023: 52.3% 

- FY2024: 51.6% 

- FY2025: 50.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electrical equipment & parts; annual sales are EUR 9.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2025: revenue 9480600000; grossProfit 4818600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LR.PA: Legrand SA, together with its subsidiaries, manufactures, distributes, and sells electrical and digital building infrastructures in Europe, North and Central America, and internationally. The company offers energy distribution, protection, and management solutions, such as electric vehicle charging, residential and small commercial panels, switchboards and power cabinets, and UPS devices; and wiring devices, connected home and building control solutions, and guestroom solutions, as well as flush-mounted, junction, DCL, and floor boxes. It also provides security, communication, and network solutions, including access security, digital home networks, emergency lighting, fire alarms, IT networks, intercom and door entry, and nurse call systems; conduits and cable management solutions comprising trunking, mini-trunking, skirting trunking, ducts, tubes, floor boxes, columns and feeders, and workstation solutions; industrial products, which comprises industrial enclosures and connections, transformers and power supply, marking accessories and cable ties, motor control and protection, fuse protection, and industrial plugs and sockets, as well as control, button, and signaling products; and installation accessories, including wiring accessories, extension cords, multi-outlet units, cable ties and fasteners, and connection boxes and terminals; and lighting products and accessories, as well as bulkhead lights and wall lights. In addition, the company offers single-phase UPS, three-phase UPS, communication accessories, software, and battery cabinets for three-phase UPS, as well as data center solutions. Further, it provides digital products and connected care services for health and social care sectors. The company also exports its products to approximately 180 countries. Legrand SA was founded in 1865 and is headquartered in Limoges, France.

### Why customers stay

Margins ranged from 50.8% to 52.3% during 2023–25; it earns 32.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2023: grossProfit / revenue = 52.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2024: grossProfit / revenue = 51.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2025: grossProfit / revenue = 50.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); 10-year return on capital observations [[2016,0.36667658403027276],[2017,0.32156557402932484],[2018,0.3195409212668417],[2019,0.29720265461436085],[2020,0.2807031731063551],[2021,0.32256237752229694],[2022,0.31320497571950834],[2023,0.3628956741428079],[2024,0.3340480107388489],[2025,0.3859344739819822]]; median 0.3220639757758109. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 111.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2016: growth capex 0; upkeep 160900000; owner earnings 642600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2017: growth capex 0; upkeep 178200000; owner earnings 732100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2018: growth capex 0; upkeep 184300000; owner earnings 794600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2019: growth capex 0; upkeep 202200000; owner earnings 875240000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2020: growth capex 0; upkeep 155100000; owner earnings 804740000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2021: growth capex 0; upkeep 30600000; owner earnings 1124460000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2022: growth capex 0; upkeep 205700000; owner earnings 1122740000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2023: growth capex 0; upkeep 253300000; owner earnings 1208380000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2024: growth capex 0; upkeep 239600000; owner earnings 1242720000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2025: growth capex 0; upkeep 221100000; owner earnings 1345880000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); Dividend observations: [[2016,307100000],[2017,317100000],[2018,336800000],[2019,357100000],[2020,358600000],[2021,377900000],[2022,439300000],[2023,504000000],[2024,547000000],[2025,575700000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); FY2025: cash repurchases 111200000 EUR.

### Are managers owners

Insiders own 3.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LR.PA SharesStats.PercentInsiders = 3.179 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.6% yearly over ten years; actual growth was 8.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:06.339Z); Ten-year compound average after fade. Initial solved rate 0.11033958053199211. Price 133.7; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.202112587274048 → FY2025 5.162918805287668. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 51.49 per share

- 2016-11: EUR 52.75 per share

- 2016-12: EUR 53.95 per share

- 2017-01: EUR 53.78 per share

- 2017-02: EUR 53.22 per share

- 2017-03: EUR 56.52 per share

- 2017-04: EUR 59.43 per share

- 2017-05: EUR 61.03 per share

- 2017-06: EUR 61.25 per share

- 2017-07: EUR 58.40 per share

- 2017-08: EUR 58.88 per share

- 2017-09: EUR 61.08 per share

- 2017-10: EUR 63.77 per share

- 2017-11: EUR 62.96 per share

- 2017-12: EUR 64.19 per share

- 2018-01: EUR 67.02 per share

- 2018-02: EUR 64.54 per share

- 2018-03: EUR 63.70 per share

- 2018-04: EUR 64.50 per share

- 2018-05: EUR 64.54 per share

- 2018-06: EUR 62.90 per share

- 2018-07: EUR 62.84 per share

- 2018-08: EUR 64.82 per share

- 2018-09: EUR 62.78 per share

- 2018-10: EUR 57.74 per share

- 2018-11: EUR 54.10 per share

- 2018-12: EUR 49.30 per share

- 2019-01: EUR 51.76 per share

- 2019-02: EUR 58.00 per share

- 2019-03: EUR 59.66 per share

- 2019-04: EUR 65.52 per share

- 2019-05: EUR 60.14 per share

- 2019-06: EUR 64.30 per share

- 2019-07: EUR 63.86 per share

- 2019-08: EUR 64.22 per share

- 2019-09: EUR 65.48 per share

- 2019-10: EUR 69.98 per share

- 2019-11: EUR 71.68 per share

- 2019-12: EUR 72.64 per share

- 2020-01: EUR 72.40 per share

- 2020-02: EUR 69.02 per share

- 2020-03: EUR 58.48 per share

- 2020-04: EUR 61.52 per share

- 2020-05: EUR 61.30 per share

- 2020-06: EUR 67.62 per share

- 2020-07: EUR 65.48 per share

- 2020-08: EUR 69.90 per share

- 2020-09: EUR 68.18 per share

- 2020-10: EUR 63.48 per share

- 2020-11: EUR 70.98 per share

- 2020-12: EUR 73.00 per share

- 2021-01: EUR 75.90 per share

- 2021-02: EUR 71.92 per share

- 2021-03: EUR 79.32 per share

- 2021-04: EUR 81.00 per share

- 2021-05: EUR 85.64 per share

- 2021-06: EUR 89.26 per share

- 2021-07: EUR 94.92 per share

- 2021-08: EUR 96.92 per share

- 2021-09: EUR 92.76 per share

- 2021-10: EUR 94.24 per share

- 2021-11: EUR 96.78 per share

- 2021-12: EUR 102.90 per share

- 2022-01: EUR 89.80 per share

- 2022-02: EUR 84.82 per share

- 2022-03: EUR 86.38 per share

- 2022-04: EUR 84.76 per share

- 2022-05: EUR 80.56 per share

- 2022-06: EUR 70.46 per share

- 2022-07: EUR 79.88 per share

- 2022-08: EUR 72.28 per share

- 2022-09: EUR 66.66 per share

- 2022-10: EUR 77.14 per share

- 2022-11: EUR 77.48 per share

- 2022-12: EUR 74.82 per share

- 2023-01: EUR 81.72 per share

- 2023-02: EUR 87.60 per share

- 2023-03: EUR 84.08 per share

- 2023-04: EUR 85.70 per share

- 2023-05: EUR 88.46 per share

- 2023-06: EUR 90.80 per share

- 2023-07: EUR 91.12 per share

- 2023-08: EUR 91.10 per share

- 2023-09: EUR 87.30 per share

- 2023-10: EUR 81.48 per share

- 2023-11: EUR 88.42 per share

- 2023-12: EUR 94.10 per share

- 2024-01: EUR 90.24 per share

- 2024-02: EUR 93.50 per share

- 2024-03: EUR 98.22 per share

- 2024-04: EUR 96.86 per share

- 2024-05: EUR 99.10 per share

- 2024-06: EUR 92.64 per share

- 2024-07: EUR 99.88 per share

- 2024-08: EUR 101.20 per share

- 2024-09: EUR 103.30 per share

- 2024-10: EUR 103.60 per share

- 2024-11: EUR 94.88 per share

- 2024-12: EUR 94.04 per share

- 2025-01: EUR 98.88 per share

- 2025-02: EUR 105.55 per share

- 2025-03: EUR 97.24 per share

- 2025-04: EUR 96.30 per share

- 2025-05: EUR 106.95 per share

- 2025-06: EUR 113.50 per share

- 2025-07: EUR 129.95 per share

- 2025-08: EUR 130.10 per share

- 2025-09: EUR 140.60 per share

- 2025-10: EUR 149.50 per share

- 2025-11: EUR 130.55 per share

- 2025-12: EUR 127.25 per share

- 2026-01: EUR 135.00 per share

- 2026-02: EUR 153.85 per share

- 2026-03: EUR 131.70 per share

- 2026-04: EUR 151.80 per share

- 2026-05: EUR 147.65 per share

- 2026-06: EUR 147.70 per share

- 2026-07: EUR 131.40 per share

- 2026-08: EUR 136.55 per share

- 2026-09: EUR 141.60 per share

- 2026-10: EUR 137.45 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 29.31 per share, central EUR 32.92 per share, high EUR 37.72 per share

- FY2017: low EUR 31.32 per share, central EUR 35.27 per share, high EUR 40.54 per share

- FY2018: low EUR 34.86 per share, central EUR 39.20 per share, high EUR 44.98 per share

- FY2019: low EUR 41.76 per share, central EUR 46.70 per share, high EUR 53.28 per share

- FY2020: low EUR 42.96 per share, central EUR 47.50 per share, high EUR 53.55 per share

- FY2021: low EUR 47.80 per share, central EUR 53.02 per share, high EUR 59.98 per share

- FY2022: low EUR 53.66 per share, central EUR 59.90 per share, high EUR 68.21 per share

- FY2023: low EUR 56.98 per share, central EUR 63.46 per share, high EUR 72.07 per share

- FY2024: low EUR 58.75 per share, central EUR 65.85 per share, high EUR 75.31 per share

- FY2025: low EUR 65.48 per share, central EUR 73.35 per share, high EUR 83.82 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.