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BH vs LEG

BH
Biglari Holdings Inc.
BEARISH
Price
$467.14
Market Cap
$1.46B
Sector
Consumer Cyclical
AI Confidence
78%
LEG
Leggett & Platt, Incorporated
NEUTRAL
Price
$11.13
Market Cap
$1.52B
Sector
Consumer Cyclical
AI Confidence
80%

Valuation

P/E Ratio
BH
217.27
LEG
6.59
Forward P/E
BH
-62.7
LEG
9.46
P/B Ratio
BH
0.5
LEG
1.48
P/S Ratio
BH
3.78
LEG
0.37
EV/EBITDA
BH
4.18
LEG
7.05

Profitability

Gross Margin
BH
38.28%
LEG
18.44%
Operating Margin
BH
9.12%
LEG
4.67%
Profit Margin
BH
0.54%
LEG
5.8%
ROE
BH
0.35%
LEG
27.49%
ROA
BH
1.54%
LEG
4.26%

Growth

Revenue Growth
BH
10.3%
LEG
-11.2%
Earnings Growth
BH
--
LEG
87.7%

Financial Health

Debt/Equity
BH
0.6
LEG
1.62
Current Ratio
BH
2.83
LEG
2.25
Quick Ratio
BH
2.73
LEG
1.37

Dividends

Dividend Yield
BH
--
LEG
1.8%
Payout Ratio
BH
0.0%
LEG
11.83%

AI Verdict

BH BEARISH

The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and the absence of an Altman Z-Score prevents a full distress risk assessment. Despite strong recent price performance (+110.4% over 1Y), the stock trades at an extremely high P/E of 217.27 versus negative Forward P/E, signaling earnings deterioration. Profitability metrics are concerning, with a mere 0.54% net margin and 0.35% ROE, well below sector averages. While the balance sheet shows a healthy current ratio and low Price/Book of 0.50, these are overshadowed by unsustainable valuation and weak earnings momentum.

Strengths
Strong liquidity position with Current Ratio of 2.83 and Quick Ratio of 2.73, indicating solid short-term financial health
Low Price/Book ratio of 0.50 suggests potential undervaluation on a book value basis
Revenue growth of 10.30% YoY outpaces sector average of 7.54%, showing top-line resilience
Risks
Piotroski F-Score of 4/9 indicates weak financial health, particularly in profitability and leverage trends
Extremely high P/E ratio of 217.27 and negative Forward P/E suggest severe earnings deterioration and overvaluation
Negative earnings growth (Q/Q EPS change: -695.7%) raises concerns about profitability sustainability
LEG NEUTRAL

LEG presents as a classic deep-value play with a stable Piotroski F-Score of 4/9 and a current price ($11.13) trading significantly below its Graham Number ($16.94). While valuation metrics like the P/E (6.59) and P/S (0.37) are exceptionally low, these are offset by a concerning -11.20% YoY revenue decline and a total lack of earnings beats over the last four quarters. The stock is caught between strong balance sheet liquidity (Current Ratio 2.25) and a severe long-term price collapse (-73% over 5 years), suggesting a 'value trap' risk despite the low entry point.

Strengths
Deeply undervalued relative to Graham Number ($16.94) and Intrinsic Value ($49.85)
Very low P/E ratio (6.59) compared to sector average (33.39)
Strong Return on Equity (ROE) of 27.49%
Risks
Negative revenue growth (-11.20% YoY) indicating shrinking market share or demand
Poor earnings track record with 0 beats in the last 4 quarters
Bearish technical trend (0/100) and severe 5-year price depreciation

Compare Another Pair

BH vs LEG: Head-to-Head Comparison

This page compares Biglari Holdings Inc. (BH) and Leggett & Platt, Incorporated (LEG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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