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1. Company Snapshot

1.a. Company Description

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide.The company offers MCBs, RCDs, and din rail equipment, including residual current circuit breakers, RCBOs, add-on modules and accessories, surge protective devices, other control and signaling devices, and time and light-sensitive switches, as well as dimmers, relays, transformers, power supplies, and accessories; ACBs, MCCBs, head equipment, and busbar systems; enclosures and accessories; equipment and accessories; home network, home automation, and hotel equipment; wiring accessories; weatherproof wiring accessories and other installation equipment; lighting management, emergency lighting, access control, and safety equipment; UPS and LCS products, cable management systems, equipment, and accessories; and mosaic wiring accessories.Its products are used in hotels, offices, data centers, industrial sites, shops, hospitals, schools, and universities, as well as residential, commercial, and industrial buildings.


Legrand SA was founded in 1865 and is headquartered in Limoges, France.

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1.b. Last Insights on LR

Legrand's recent performance has been impacted by a 13% drop in share value over the past week, sparking investor scrutiny of its fair value. The company's strategic acquisitions in the smart home sector, such as Avtron Power Solutions, a global provider of load banks and power quality solutions, have garnered attention. Additionally, Legrand's Q3 2025 earnings call highlighted strong data center growth and solid operating margins. The company has also signed a share buyback agreement, which could be viewed as a positive event by reducing the number of outstanding shares. (Source: Jefferies upgraded Legrand stock rating to Buy)

1.c. Company Highlights

2. Legrand's Strong 9-Month Performance Driven by Data Center Growth

Legrand reported robust sales growth of 14.5% excluding FX, with organic growth of 8.2% and a positive scope effect of 5.8%. The adjusted operating margin was 20.7%, representing a 20 basis point increase year-over-year. Net profit stood at EUR 892 million, and EPS came in at EUR 1.27, beating estimates of EUR 1.23. Free cash flow was EUR 871 million, growing 16.3% over the same period last year.

Publication Date: Nov -07

📋 Highlights
  • Sales Growth:: Excluding FX, sales grew 14.5% (organic +8.2%, scope +5.8%) in 9 months.
  • Data Center Performance:: Data center business grew over 30% YoY, with a $1B+ backlog and 30% 2025 growth target.
  • Margin Strength:: Adjusted operating margin rose 20 bps to 20.7%, while net profit hit EUR 892M.
  • Acquisition Momentum:: 7 acquisitions since January, totaling EUR 500M in annualized sales (e.g., Avtron in data centers).
  • Free Cash Flow:: EUR 871M generated, up 16.3% YoY, with full-year guidance confirmed at 10–12% sales growth.

Segmental Performance

The company's data center business performed exceptionally well, with growth of over 30% in the first 9 months. Geographically, sales in Europe were up 1.5%, North and Central America saw a strong 18% increase, and the Rest of the World grew 2.5%. The data center business is expected to continue its strong growth trajectory, with Legrand expecting to grow this segment by around 30% in 2025.

Acquisition Strategy

Legrand has announced 7 acquisitions since January, with a total acquired annualized sales of approximately EUR 500 million. One notable acquisition is Avtron, a leader in North America, which strengthens Legrand's presence in growing data centers and energy transition. The company's acquisition strategy is expected to continue, with a focus on value-accretive deals.

Guidance and Outlook

Legrand confirms its 2025 full-year targets, with sales growth expected to be between 10% and 12%, and an adjusted operating margin of 20.5% to 21%. The company's guidance for 2026 will be provided in February 2026. Analysts estimate next year's revenue growth at 7.7%.

Valuation

Legrand's current valuation metrics indicate a P/E Ratio of 28.13, P/B Ratio of 4.9, and EV/EBITDA of 16.9. The company's ROE is 16.84%, and ROIC is 9.05%. These metrics suggest that the company's strong growth prospects are partially priced in, but its solid profitability and cash generation capabilities support its current valuation.

3. NewsRoom

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Stride, Inc. (LRN): A Bull Case Theory

Dec -04

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Stride is Trading at a Discount: Right Time to Buy the Stock?

Dec -04

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Legrand: Total Number of Shares and Voting Rights

Dec -03

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Did Fraud Allegations and Compliance Concerns Just Shift Stride's (LRN) Investment Narrative?

Dec -02

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Will Stride's Platform Pains Delay Its Long-Term 2028 Targets?

Dec -02

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Legrand: Statement of Transactions in Own Shares From 24/11/2025 Au 28/11/2025

Dec -01

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Stride vs. Grand Canyon Education: Which Education Stock to Buy Now?

Nov -28

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Does Legrand’s 39% Rally in 2025 Match Its Smart Building Ambitions?

Nov -28

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Electric Equipment

Expected Growth: 5.5%

Legrand SA's electrical and industrial control products segment is driven by increasing demand for energy efficiency, industrial automation, and smart building solutions.

7. Detailed Products

Electrical Distribution

Legrand's electrical distribution products provide safe and efficient distribution of electrical power in buildings and industries.

Digital Infrastructure

Legrand's digital infrastructure products provide structured cabling systems, data centers, and network infrastructure solutions.

Building Automation

Legrand's building automation products provide integrated solutions for controlling and monitoring building systems such as lighting, HVAC, and security.

Cable Management

Legrand's cable management products provide solutions for cable routing, protection, and organization in buildings and industries.

Industrial Control and Automation

Legrand's industrial control and automation products provide solutions for industrial automation, control, and monitoring.

User Interface

Legrand's user interface products provide solutions for human-machine interface, operator panels, and industrial computers.

Residential Solutions

Legrand's residential solutions provide products and systems for electrical distribution, lighting, and home automation.

8. Legrand SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Legrand SA operates in the electrical equipment industry, where substitutes are limited. However, the increasing adoption of smart home devices and energy-efficient solutions may pose a moderate threat to the company's products.

Bargaining Power Of Customers

Legrand SA has a diverse customer base, including electrical contractors, builders, and homeowners. While customers have some bargaining power, the company's strong brand reputation and wide distribution network mitigate this threat.

Bargaining Power Of Suppliers

Legrand SA relies on a network of suppliers for raw materials and components. While the company has some bargaining power, suppliers may still exert pressure on prices and delivery terms, particularly in times of high demand.

Threat Of New Entrants

The electrical equipment industry has high barriers to entry, including significant capital requirements and regulatory hurdles. New entrants may struggle to compete with established players like Legrand SA.

Intensity Of Rivalry

The electrical equipment industry is highly competitive, with several established players vying for market share. Legrand SA faces intense competition from companies like Schneider Electric, Siemens, and ABB.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.65%
Debt Cost 3.95%
Equity Weight 59.35%
Equity Cost 8.44%
WACC 6.62%
Leverage 68.50%

11. Quality Control: Legrand SA passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cembre

A-Score: 6.6/10

Value: 2.5

Growth: 6.4

Quality: 7.9

Yield: 6.2

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Vinci

A-Score: 6.6/10

Value: 6.3

Growth: 6.2

Quality: 4.6

Yield: 6.9

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
BAE Systems

A-Score: 5.7/10

Value: 2.4

Growth: 6.9

Quality: 4.8

Yield: 4.4

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Legrand

A-Score: 5.3/10

Value: 1.8

Growth: 5.4

Quality: 6.7

Yield: 2.5

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
ABB

A-Score: 5.3/10

Value: 1.1

Growth: 5.4

Quality: 6.9

Yield: 3.8

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Saint-Gobain

A-Score: 5.2/10

Value: 4.8

Growth: 5.8

Quality: 4.3

Yield: 4.4

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

128.75$

Current Price

128.75$

Potential

-0.00%

Expected Cash-Flows