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Leggett & Platt Inc T.LEG


Primary Symbol: LEG

Leggett & Platt, Incorporated is a manufacturer that conceives, designs, and produces a range of engineered components and products found in many homes and automobiles. The Company’s segments include Bedding Products, Specialized Products and Furniture, Flooring & Textile Products. Bedding Products segment supplies a variety of components and machinery used by bedding manufacturers in the production and assembly of their finished products, as well as produces private label finished mattresses for bedding brands. Specialized Products segment supplies lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. It also produces and distribute tubing and tube assemblies for the aerospace industry and engineered hydraulic cylinders used in the material-handling and construction industries. Furniture, Flooring & Textile Products segment supplies a range of components for residential and work furniture manufacturers.


NYSE:LEG - Post by User

Post by MustangMatton Aug 13, 2013 12:15am
393 Views
Post# 21665614

Free cash flow

Free cash flow
I think a real important metric is being missed here.  This is the first time in recent memory, or at least since I have owned the stock, that "funds generated by operations 71,335 excede " capital expenditures (excluding aquisitions) 70, 915.   What this means is that  they are bringing more money in than they are spending in opeations (This is good, that gap is where your divy would come from).  To give you some context in Q4 2011 funds generated by operations was 60,310 and the cap ex was 117,754.  Another little nugett to think about for Q3 this year is that the oil price thus far has averaged about $10 dollars per barrel higher than in Q2 2013.  I would have liked to know what current production is at.  I believe this company is at a tipping point, if these guys start generation 10-15 million FCF a QTR look out. 

Definition of 'Free Cash Flow - FCF'

A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value. Without cash, it's tough to develop new products, make acquisitions, pay dividends and reduce debt.

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