LA-Z-BOY INC (LZB) Stock Fundamental Analysis
NYSE:LZB - New York Stock Exchange, Inc. - US5053361078 - Common Stock - Currency: USD
Taking everything into account, LZB scores 6 out of 10 in our fundamental rating. LZB was compared to 64 industry peers in the Household Durables industry. While LZB has a great health rating, its profitability is only average at the moment. LZB has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years LZB has been profitable.
Each year in the past 5 years LZB had a positive operating cash flow.
1.2 Ratios
LZB has a Return On Assets (6.33%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 12.14%, LZB is in line with its industry, outperforming 50.00% of the companies in the same industry.
LZB has a Return On Invested Capital (7.75%) which is in line with 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 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 12.14% | ||
| ROIC | 7.75% |
ROA(3y)7.42%
ROA(5y)6.72%
ROE(3y)15.58%
ROE(5y)14.31%
ROIC(3y)10.4%
ROIC(5y)9.85%
1.3 Margins
LZB has a Profit Margin (5.92%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LZB has grown nicely.
LZB has a Operating Margin (7.48%) which is comparable to the rest of the industry.
LZB's Operating Margin has been stable in the last couple of years.
LZB's Gross Margin of 43.76% is amongst the best of the industry. LZB outperforms 81.25% of its industry peers.
In the last couple of years the Gross Margin of LZB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.48% | ||
| PM (TTM) | 5.92% | ||
| GM | 43.76% |
OM growth 3Y-2.23%
OM growth 5Y-0.17%
PM growth 3Y-0.79%
PM growth 5Y8.89%
GM growth 3Y0.3%
GM growth 5Y1.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LZB is still creating some value.
Compared to 1 year ago, LZB has less shares outstanding
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 3.02 indicates that LZB is not in any danger for bankruptcy at the moment.
The Altman-Z score of LZB (3.02) is comparable to the rest of the industry.
LZB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.86
WACC8.99%
2.3 Liquidity
LZB has a Current Ratio of 1.85. This is a normal value and indicates that LZB is financially healthy and should not expect problems in meeting its short term obligations.
LZB's Current ratio of 1.85 is on the low side compared to the rest of the industry. LZB is outperformed by 68.75% of its industry peers.
A Quick Ratio of 1.21 indicates that LZB should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.21, LZB is doing good in the industry, outperforming 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for LZB have decreased by -1.99% in the last year.
LZB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.19% yearly.
LZB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.80%.
Measured over the past years, LZB shows a small growth in Revenue. The Revenue has been growing by 3.24% on average per year.
EPS 1Y (TTM)-1.99%
EPS 3Y4.52%
EPS 5Y8.19%
EPS Q2Q%1.49%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%4.27%
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 7.11% on average per year.
LZB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y-0.13%
EPS Next 2Y5.33%
EPS Next 3Y6.76%
EPS Next 5Y7.11%
Revenue Next Year4.29%
Revenue Next 2Y3.89%
Revenue Next 3Y3.9%
Revenue Next 5Y3.4%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.99, LZB is valued correctly.
LZB's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. LZB is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.63, the valuation of LZB can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as LZB.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, LZB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 11.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZB is valued a bit cheaper than 62.50% of the companies in the same industry.
LZB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LZB is cheaper than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.31 | ||
| EV/EBITDA | 6.23 |
4.3 Compensation for Growth
The decent profitability rating of LZB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y5.33%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.29%.
Compared to an average industry Dividend Yield of 3.71, LZB pays a better dividend. On top of this LZB pays more dividend than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, LZB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
The dividend of LZB is nicely growing with an annual growth rate of 8.74%!
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)8.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
27.72% of the earnings are spent on dividend by LZB. This is a low number and sustainable payout ratio.
The dividend of LZB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.72%
EPS Next 2Y5.33%
EPS Next 3Y6.76%
38.46
+0.79 (+2.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners99.98%
Inst Owner Change0.28%
Ins Owners0.73%
Ins Owner Change0.23%
Market Cap1.59B
Analysts48
Price Target46.92 (22%)
Short Float %5.47%
Short Ratio4.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend0.76
Dividend Growth(5Y)8.74%
DP27.72%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.9%
Min EPS beat(2)-1.47%
Max EPS beat(2)9.27%
EPS beat(4)3
Avg EPS beat(4)11.42%
Min EPS beat(4)-1.47%
Max EPS beat(4)35.01%
EPS beat(8)6
Avg EPS beat(8)12.83%
EPS beat(12)10
Avg EPS beat(12)17.55%
EPS beat(16)12
Avg EPS beat(16)13.16%
Revenue beat(2)2
Avg Revenue beat(2)0.98%
Min Revenue beat(2)0.01%
Max Revenue beat(2)1.95%
Revenue beat(4)4
Avg Revenue beat(4)2.59%
Min Revenue beat(4)0.01%
Max Revenue beat(4)6.12%
Revenue beat(8)7
Avg Revenue beat(8)1.33%
Revenue beat(12)11
Avg Revenue beat(12)2.21%
Revenue beat(16)14
Avg Revenue beat(16)2.59%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.06%
EPS NY rev (1m)-1.45%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 11.63 | ||
| P/S | 0.76 | ||
| P/FCF | 14.31 | ||
| P/OCF | 8.92 | ||
| P/B | 1.55 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)2.96
EY7.7%
EPS(NY)3.31
Fwd EY8.6%
FCF(TTM)2.69
FCFY6.99%
OCF(TTM)4.31
OCFY11.21%
SpS50.66
BVpS24.73
TBVpS18.14
PEG (NY)N/A
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 12.14% | ||
| ROCE | 10.4% | ||
| ROIC | 7.75% | ||
| ROICexc | 9.83% | ||
| ROICexgc | 12.76% | ||
| OM | 7.48% | ||
| PM (TTM) | 5.92% | ||
| GM | 43.76% | ||
| FCFM | 5.31% |
ROA(3y)7.42%
ROA(5y)6.72%
ROE(3y)15.58%
ROE(5y)14.31%
ROIC(3y)10.4%
ROIC(5y)9.85%
ROICexc(3y)13.54%
ROICexc(5y)13.27%
ROICexgc(3y)17.64%
ROICexgc(5y)17.41%
ROCE(3y)13.96%
ROCE(5y)13.39%
ROICexcg growth 3Y-10.85%
ROICexcg growth 5Y-9.43%
ROICexc growth 3Y-9.31%
ROICexc growth 5Y-7.14%
OM growth 3Y-2.23%
OM growth 5Y-0.17%
PM growth 3Y-0.79%
PM growth 5Y8.89%
GM growth 3Y0.3%
GM growth 5Y1.36%
F-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 142.43% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.5% | ||
| Profit Quality | 89.55% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 3.02 |
F-Score6
WACC8.99%
ROIC/WACC0.86
Cap/Depr(3y)157.97%
Cap/Depr(5y)147.3%
Cap/Sales(3y)2.93%
Cap/Sales(5y)2.74%
Profit Quality(3y)59.13%
Profit Quality(5y)117.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.99%
EPS 3Y4.52%
EPS 5Y8.19%
EPS Q2Q%1.49%
EPS Next Y-0.13%
EPS Next 2Y5.33%
EPS Next 3Y6.76%
EPS Next 5Y7.11%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%4.27%
Revenue Next Year4.29%
Revenue Next 2Y3.89%
Revenue Next 3Y3.9%
Revenue Next 5Y3.4%
EBIT growth 1Y1.06%
EBIT growth 3Y3.33%
EBIT growth 5Y3.06%
EBIT Next Year44.06%
EBIT Next 3Y20.28%
EBIT Next 5Y14.79%
FCF growth 1Y29.81%
FCF growth 3Y-27.28%
FCF growth 5Y0.44%
OCF growth 1Y10.65%
OCF growth 3Y-20.09%
OCF growth 5Y0.97%