LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LZB - US5053361078 - Common Stock
39.71 USD
+0.16 (+0.4%)
39.71 USD
0 (0%)
Overall LZB gets a fundamental rating of 5 out of 10. We evaluated LZB against 61 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 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.
LZB had a positive operating cash flow in the past year.
LZB had positive earnings in each of the past 5 years.
Each year in the past 5 years LZB had a positive operating cash flow.
1.2 Ratios
LZB has a Return On Assets (4.62%) which 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 49.18% 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 49.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LZB is in line with the industry average of 9.73%.
| 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 49.18% of its industry peers.
In the last couple of years the Profit Margin of LZB has remained more or less at the same level.
The Operating Margin of LZB (6.81%) is comparable to the rest of the industry.
LZB's Operating Margin has declined in the last couple of years.
LZB has a better Gross Margin (43.79%) than 81.97% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LZB is destroying value.
LZB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LZB has been reduced compared to 5 years ago.
The debt/assets ratio for LZB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.06 indicates that LZB is not in any danger for bankruptcy at the moment.
LZB has a Altman-Z score (3.06) which is in line with its industry peers.
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 | 3.06 |
ROIC/WACC0.72
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.94 indicates that LZB should not have too much problems paying its short term obligations.
LZB has a worse Current ratio (1.94) than 65.57% of its industry peers.
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 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
LZB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.76%.
LZB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.39% yearly.
Looking at the last year, LZB shows a small growth in Revenue. The Revenue has grown by 1.78% in the last 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
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
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 14.28, the valuation of LZB can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as LZB.
Compared to an average S&P500 Price/Earnings ratio of 26.43, LZB is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.18, which indicates a correct valuation of LZB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LZB indicates a somewhat cheap valuation: LZB is cheaper than 62.30% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LZB to the average of the S&P500 Index (23.66), we can say LZB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 13.18 |
4.2 Price Multiples
73.77% of the companies in the same industry are more expensive than LZB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LZB is valued a bit cheaper than 72.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.11 | ||
| EV/EBITDA | 6.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.24
EPS Next 2Y1.41%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.44%. 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 85.25% of the companies in the same industry.
LZB's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
The dividend of LZB is nicely growing with an annual growth rate of 9.12%!
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%
39.71
+0.16 (+0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners102.18%
Inst Owner Change0.63%
Ins Owners2.6%
Ins Owner Change16.34%
Market Cap1.64B
Revenue(TTM)2.11B
Net Income(TTM)90.42M
Analysts80
Price Target43.35 (9.17%)
Short Float %4.98%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend0.84
Dividend Growth(5Y)9.12%
DP40.2%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)3.66%
PT rev (3m)3.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-3.52%
EPS NY rev (3m)4.34%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 13.18 | ||
| P/S | 0.78 | ||
| P/FCF | 13.11 | ||
| P/OCF | 7.98 | ||
| P/B | 1.58 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 6.79 |
EPS(TTM)2.78
EY7%
EPS(NY)3.01
Fwd EY7.59%
FCF(TTM)3.03
FCFY7.63%
OCF(TTM)4.98
OCFY12.54%
SpS51.09
BVpS25.2
TBVpS19.02
PEG (NY)N/A
PEG (5Y)2.24
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 | 3.06 |
F-Score8
WACC9.27%
ROIC/WACC0.72
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.
Can you provide the valuation status for LA-Z-BOY INC?
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 is the earnings growth outlook for LA-Z-BOY INC?
The Earnings per Share (EPS) of LA-Z-BOY INC (LZB) is expected to decline by -8.77% in the next year.
Can you provide the dividend sustainability for LZB stock?
The dividend rating of LA-Z-BOY INC (LZB) is 6 / 10 and the dividend payout ratio is 40.2%.