Legrand: An Impressive Share Price Performance, But Stock Appears Fairly Valued

The Investment DoctorInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryLegrand delivered strong 2025 results, with double-digit revenue growth and disciplined cost control driving robust operating and free cash flow.LGRVF expects 10–15% revenue growth in 2026, with adjusted operating margins targeted at 20.5–21%, and ongoing M&A supporting non-organic expansion.Management’s 2030 plan targets €15B revenue and >20% operating margin, but current valuation implies a forward P/E of 17–19, limiting upside.I maintain a "hold" rating due to the sub-4% free cash flow yield and premium valuation, despite excellent execution and strategic clarity.Looking for more investing ideas like this one? Get them exclusively at European Small-Cap Ideas. Learn More » Rodrigo Magana/iStock Editorial via Getty Images Introduction Legrand (LGRVF) (LGRDY) focuses on electrical and digital building infrastructure. I covered the company in 2023, and although I was not impressed with its metrics, the market has proven me wrong, as the share price has almostThis article was written byThe Investment Doctor23.73K FollowersFollowThe Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.