LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LZB - US5053361078 - Common Stock
38.1 USD
-0.71 (-1.83%)
38.1 USD
0 (0%)
LZB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. LZB is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LZB is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year LZB was profitable.
- In the past year LZB had a positive cash flow from operations.
- In the past 5 years LZB has always been profitable.
- In the past 5 years LZB always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 4.62%, LZB perfoms like the industry average, outperforming 53.33% of the companies in the same 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.
- Looking at the Return On Invested Capital, with a value of 6.72%, LZB is in line with its industry, outperforming 50.00% of the companies in the same industry.
- 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
- LZB has a Profit Margin of 4.29%. This is comparable to the rest of the industry: LZB outperforms 46.67% of its industry peers.
- LZB's Profit Margin has been stable in the last couple of years.
- LZB has a Operating Margin (6.81%) which is comparable to the rest of the industry.
- LZB's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 43.79%, LZB belongs to the top 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
- LZB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for LZB has been reduced compared to 1 year ago.
- LZB has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, LZB has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.04 indicates that LZB is not in any danger for bankruptcy at the moment.
- LZB has a Altman-Z score (3.04) 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 | 3.04 |
ROIC/WACC0.71
WACC9.53%
2.3 Liquidity
- A Current Ratio of 1.94 indicates that LZB should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.94, LZB is doing worse than 66.67% of the companies in the same industry.
- 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.
- LZB has a better Quick ratio (1.41) than 68.33% of its industry peers.
| 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.
- Measured over the past 5 years, LZB shows a small growth in Earnings Per Share. The EPS has been growing by 6.39% on average per year.
- LZB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.78%.
- 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
- Based on estimates for the next years, LZB will show a small growth in Earnings Per Share. The EPS will grow by 6.05% on average per year.
- The Revenue is expected to grow by 2.15% on average over the next years.
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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.71, 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.
- LZB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- LZB is valuated correctly with a Price/Forward Earnings ratio of 12.64.
- Based on the Price/Forward Earnings ratio, LZB is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of LZB to the average of the S&P500 Index (24.26), we can say LZB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LZB is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, LZB is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.15
EPS Next 2Y1.41%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
- LZB has a Yearly Dividend Yield of 2.49%.
- Compared to an average industry Dividend Yield of 1.16, LZB pays a better dividend. On top of this LZB pays more dividend than 85.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, LZB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
- 40.20% of the earnings are spent on dividend by LZB. This is a bit on the high side, but may be sustainable.
- The dividend of LZB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.2%
EPS Next 2Y1.41%
EPS Next 3Y9.51%
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 13.71 and the Price/Book (PB) ratio is 1.51.
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%.