LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LZB - US5053361078 - Common Stock
39.17 USD
-0.12 (-0.31%)
39.17 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LZB. LZB was compared to 60 industry peers in the Household Durables industry. LZB has an excellent financial health rating, but there are some minor concerns on its profitability. LZB has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- LZB had positive earnings in the past year.
- In the past year LZB had a positive cash flow from operations.
- LZB had positive earnings in each of the past 5 years.
- LZB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of LZB (4.62%) is comparable to the rest of the industry.
- LZB's Return On Equity of 8.70% is in line compared to the rest of the industry. LZB outperforms 46.67% of its industry peers.
- LZB has a Return On Invested Capital of 6.72%. This is comparable to the rest of the industry: LZB outperforms 50.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LZB is in line with the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 8.7% | ||
| ROIC | 6.72% |
ROA(3y)6.55%
ROA(5y)6.68%
ROE(3y)12.66%
ROE(5y)14.05%
ROIC(3y)8.59%
ROIC(5y)9.19%
1.3 Margins
- The Profit Margin of LZB (4.29%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of LZB has remained more or less at the same level.
- LZB has a Operating Margin (6.81%) which is in line with its industry peers.
- LZB's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 43.79%, LZB belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
- LZB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.81% | ||
| PM (TTM) | 4.29% | ||
| GM | 43.79% |
OM growth 3Y-5.45%
OM growth 5Y-2.81%
PM growth 3Y-9.48%
PM growth 5Y0.77%
GM growth 3Y4.16%
GM growth 5Y0.74%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LZB is destroying value.
- The number of shares outstanding for LZB has been reduced compared to 1 year ago.
- Compared to 5 years ago, LZB has less shares outstanding
- LZB has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.05 indicates that LZB is not in any danger for bankruptcy at the moment.
- LZB has a Altman-Z score (3.05) which is in line with its industry peers.
- There is no outstanding debt for LZB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.71
WACC9.53%
2.3 Liquidity
- LZB has a Current Ratio of 1.94. This is a normal value and indicates that LZB is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.94, LZB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- LZB has a Quick Ratio of 1.41. This is a normal value and indicates that LZB is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.41, LZB is in the better half of the industry, outperforming 68.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- The earnings per share for LZB have decreased by -5.76% in the last year.
- The Earnings Per Share has been growing slightly by 6.39% on average over the past years.
- The Revenue has been growing slightly by 1.78% in the past year.
- LZB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.36% yearly.
EPS 1Y (TTM)-5.76%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%0%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%0.28%
3.2 Future
- The Earnings Per Share is expected to grow by 6.05% on average over the next years.
- Based on estimates for the next years, LZB will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
EPS Next Y-8.77%
EPS Next 2Y1.41%
EPS Next 3Y9.51%
EPS Next 5Y6.05%
Revenue Next Year1.98%
Revenue Next 2Y2.77%
Revenue Next 3Y3.17%
Revenue Next 5Y2.15%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.09, the valuation of LZB can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of LZB is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of LZB to the average of the S&P500 Index (27.38), we can say LZB is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 13.00, LZB is valued correctly.
- Based on the Price/Forward Earnings ratio, LZB is valued a bit cheaper than 65.00% of the companies in the same industry.
- LZB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 13 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LZB indicates a somewhat cheap valuation: LZB is cheaper than 75.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, LZB is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.94 | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.21
EPS Next 2Y1.41%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
- LZB has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
- LZB's Dividend Yield is rather good when compared to the industry average which is at 1.16. LZB pays more dividend than 85.00% of the companies in the same industry.
- LZB's Dividend Yield is a higher than the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
- On average, the dividend of LZB grows each year by 9.12%, which is quite nice.
- LZB has paid a dividend for at least 10 years, which is a reliable track record.
- LZB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.12%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- LZB pays out 40.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
- LZB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.2%
EPS Next 2Y1.41%
EPS Next 3Y9.51%
39.17
-0.12 (-0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)11-18 2025-11-18/amc
Earnings (Next)02-16 2026-02-16
Inst Owners101.77%
Inst Owner Change-0.59%
Ins Owners2.6%
Ins Owner Change1.94%
Market Cap1.62B
Revenue(TTM)2.11B
Net Income(TTM)90.42M
Analysts80
Price Target43.35 (10.67%)
Short Float %5.12%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend0.84
Dividend Growth(5Y)9.12%
DP40.2%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.24%
Min EPS beat(2)-15.39%
Max EPS beat(2)15.87%
EPS beat(4)1
Avg EPS beat(4)-0.76%
Min EPS beat(4)-15.39%
Max EPS beat(4)15.87%
EPS beat(8)4
Avg EPS beat(8)4.48%
EPS beat(12)8
Avg EPS beat(12)11.52%
EPS beat(16)11
Avg EPS beat(16)11.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)-0.98%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)1.39%
Revenue beat(8)5
Avg Revenue beat(8)0.52%
Revenue beat(12)9
Avg Revenue beat(12)1.4%
Revenue beat(16)12
Avg Revenue beat(16)1.55%
PT rev (1m)0%
PT rev (3m)3.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 13 | ||
| P/S | 0.77 | ||
| P/FCF | 12.94 | ||
| P/OCF | 7.87 | ||
| P/B | 1.55 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)2.78
EY7.1%
EPS(NY)3.01
Fwd EY7.69%
FCF(TTM)3.03
FCFY7.73%
OCF(TTM)4.98
OCFY12.71%
SpS51.09
BVpS25.2
TBVpS19.02
PEG (NY)N/A
PEG (5Y)2.21
Graham Number39.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 8.7% | ||
| ROCE | 9.34% | ||
| ROIC | 6.72% | ||
| ROICexc | 8.64% | ||
| ROICexgc | 10.99% | ||
| OM | 6.81% | ||
| PM (TTM) | 4.29% | ||
| GM | 43.79% | ||
| FCFM | 5.93% |
ROA(3y)6.55%
ROA(5y)6.68%
ROE(3y)12.66%
ROE(5y)14.05%
ROIC(3y)8.59%
ROIC(5y)9.19%
ROICexc(3y)11.28%
ROICexc(5y)12.34%
ROICexgc(3y)14.64%
ROICexgc(5y)16.2%
ROCE(3y)11.95%
ROCE(5y)12.79%
ROICexgc growth 3Y-14.13%
ROICexgc growth 5Y-4.21%
ROICexc growth 3Y-13.73%
ROICexc growth 5Y-4.28%
OM growth 3Y-5.45%
OM growth 5Y-2.81%
PM growth 3Y-9.48%
PM growth 5Y0.77%
GM growth 3Y4.16%
GM growth 5Y0.74%
F-Score8
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 174.4% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.32% | ||
| Profit Quality | 138.14% | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 3.05 |
F-Score8
WACC9.53%
ROIC/WACC0.71
Cap/Depr(3y)146.87%
Cap/Depr(5y)149.65%
Cap/Sales(3y)3.02%
Cap/Sales(5y)2.9%
Profit Quality(3y)96.43%
Profit Quality(5y)109.29%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.76%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%0%
EPS Next Y-8.77%
EPS Next 2Y1.41%
EPS Next 3Y9.51%
EPS Next 5Y6.05%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%0.28%
Revenue Next Year1.98%
Revenue Next 2Y2.77%
Revenue Next 3Y3.17%
Revenue Next 5Y2.15%
EBIT growth 1Y-6.73%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year23.4%
EBIT Next 3Y15.02%
EBIT Next 5Y13.21%
FCF growth 1Y-29.1%
FCF growth 3Y261.09%
FCF growth 5Y-0.9%
OCF growth 1Y-11.14%
OCF growth 3Y33.34%
OCF growth 5Y2.66%
LA-Z-BOY INC / LZB FAQ
Can you provide the ChartMill fundamental rating for LA-Z-BOY INC?
ChartMill assigns a fundamental rating of 5 / 10 to LZB.
What is the valuation status of LA-Z-BOY INC (LZB) stock?
ChartMill assigns a valuation rating of 4 / 10 to LA-Z-BOY INC (LZB). This can be considered as Fairly Valued.
How profitable is LA-Z-BOY INC (LZB) stock?
LA-Z-BOY INC (LZB) has a profitability rating of 5 / 10.
What are the PE and PB ratios of LA-Z-BOY INC (LZB) stock?
The Price/Earnings (PE) ratio for LA-Z-BOY INC (LZB) is 14.09 and the Price/Book (PB) ratio is 1.55.
How sustainable is the dividend of LA-Z-BOY INC (LZB) stock?
The dividend rating of LA-Z-BOY INC (LZB) is 6 / 10 and the dividend payout ratio is 40.2%.