LA-Z-BOY INC (LZB)

US5053361078 - Common Stock

43.44  +0.35 (+0.81%)

After market: 43.44 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to LZB. LZB was compared to 67 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 correct valuation and a medium growth rate.



6

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.
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

Looking at the Return On Assets, with a value of 6.44%, LZB is in line with its industry, outperforming 53.85% of the companies in the same industry.
LZB has a Return On Equity of 12.29%. This is comparable to the rest of the industry: LZB outperforms 52.31% of its industry peers.
LZB has a Return On Invested Capital (7.68%) which is in line with its industry peers.
LZB had an Average Return On Invested Capital over the past 3 years of 10.40%. This is in line with the industry average of 12.02%.
Industry RankSector Rank
ROA 6.44%
ROE 12.29%
ROIC 7.68%
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's Profit Margin of 6.00% is in line compared to the rest of the industry. LZB outperforms 50.77% of its industry peers.
In the last couple of years the Profit Margin of LZB has grown nicely.
Looking at the Operating Margin, with a value of 7.43%, LZB is in line with its industry, outperforming 50.77% of the companies in the same industry.
LZB's Operating Margin has been stable in the last couple of years.
The Gross Margin of LZB (43.34%) is better than 81.54% 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 RankSector Rank
OM 7.43%
PM (TTM) 6%
GM 43.34%
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%

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LZB is creating some value.
Compared to 1 year ago, LZB has less shares outstanding
The number of shares outstanding for LZB has been reduced compared to 5 years ago.
Compared to 1 year ago, LZB has a worse debt to assets ratio.

2.2 Solvency

LZB has an Altman-Z score of 3.19. This indicates that LZB is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.19, LZB perfoms like the industry average, outperforming 53.85% of the companies in the same 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.19
ROIC/WACC0.81
WACC9.42%

2.3 Liquidity

LZB has a Current Ratio of 1.88. 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 1.88, LZB is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
A Quick Ratio of 1.22 indicates that LZB should not have too much problems paying its short term obligations.
LZB's Quick ratio of 1.22 is fine compared to the rest of the industry. LZB outperforms 67.69% of its industry peers.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.22

4

3. Growth

3.1 Past

LZB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.51%.
The Earnings Per Share has been growing by 8.19% on average over the past years. This is quite good.
The Revenue has decreased by -2.66% in the past year.
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)-9.51%
EPS 3Y4.52%
EPS 5Y8.19%
EPS Q2Q%-4.05%
Revenue 1Y (TTM)-2.66%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%1.88%

3.2 Future

The Earnings Per Share is expected to grow by 8.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.41% on average over the next years.
EPS Next Y1.23%
EPS Next 2Y7.19%
EPS Next 3Y6.36%
EPS Next 5Y8.02%
Revenue Next Year4.19%
Revenue Next 2Y4.08%
Revenue Next 3Y3.14%
Revenue Next 5Y3.41%

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 stable: in the next years the growth will be about the same than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.73, which indicates a correct valuation of LZB.
The rest of the industry has a similar Price/Earnings ratio as LZB.
When comparing the Price/Earnings ratio of LZB to the average of the S&P500 Index (26.91), we can say LZB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.69, the valuation of LZB can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as LZB.
LZB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.26.
Industry RankSector Rank
PE 14.73
Fwd PE 12.69

4.2 Price Multiples

LZB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LZB is cheaper than 64.62% 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 69.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.43
EV/EBITDA 7.44

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LZB does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LZB may justify a higher PE ratio.
PEG (NY)12.01
PEG (5Y)1.8
EPS Next 2Y7.19%
EPS Next 3Y6.36%

6

5. Dividend

5.1 Amount

LZB has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.98, LZB pays a better dividend. On top of this LZB pays more dividend than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, LZB has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.04%

5.2 History

On average, the dividend of LZB grows each year by 8.74%, which is quite nice.
LZB has been paying a dividend for at least 10 years, so it has 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

27.20% 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.
DP27.2%
EPS Next 2Y7.19%
EPS Next 3Y6.36%

LA-Z-BOY INC

NYSE:LZB (1/10/2025, 8:04:00 PM)

After market: 43.44 0 (0%)

43.44

+0.35 (+0.81%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)11-19 2024-11-19/amc
Earnings (Next)02-18 2025-02-18/amc
Inst Owners102.41%
Inst Owner Change0%
Ins Owners0.69%
Ins Owner Change2.24%
Market Cap1.80B
Analysts48
Price Target46.92 (8.01%)
Short Float %3.95%
Short Ratio4.12
Dividend
Industry RankSector Rank
Dividend Yield 2.04%
Dividend Growth(5Y)8.74%
DP27.2%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.08%
Min EPS beat(2)2.88%
Max EPS beat(2)9.27%
EPS beat(4)3
Avg EPS beat(4)9.72%
Min EPS beat(4)-8.29%
Max EPS beat(4)35.01%
EPS beat(8)7
Avg EPS beat(8)17.67%
EPS beat(12)10
Avg EPS beat(12)15.35%
EPS beat(16)13
Avg EPS beat(16)13.51%
Revenue beat(2)2
Avg Revenue beat(2)2.12%
Min Revenue beat(2)1.95%
Max Revenue beat(2)2.28%
Revenue beat(4)3
Avg Revenue beat(4)1.27%
Min Revenue beat(4)-5.28%
Max Revenue beat(4)6.12%
Revenue beat(8)7
Avg Revenue beat(8)2.21%
Revenue beat(12)10
Avg Revenue beat(12)2.14%
Revenue beat(16)13
Avg Revenue beat(16)2.55%
PT rev (1m)6.98%
PT rev (3m)6.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.11%
EPS NY rev (1m)0%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.71%
Valuation
Industry RankSector Rank
PE 14.73
Fwd PE 12.69
P/S 0.87
P/FCF 16.43
P/OCF 10.63
P/B 1.78
P/tB 2.44
EV/EBITDA 7.44
EPS(TTM)2.95
EY6.79%
EPS(NY)3.42
Fwd EY7.88%
FCF(TTM)2.64
FCFY6.09%
OCF(TTM)4.09
OCFY9.41%
SpS49.92
BVpS24.35
TBVpS17.81
PEG (NY)12.01
PEG (5Y)1.8
Profitability
Industry RankSector Rank
ROA 6.44%
ROE 12.29%
ROCE 10.3%
ROIC 7.68%
ROICexc 9.65%
ROICexgc 12.51%
OM 7.43%
PM (TTM) 6%
GM 43.34%
FCFM 5.3%
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 126.99%
Cap/Sales 2.89%
Interest Coverage 250
Cash Conversion 84.37%
Profit Quality 88.35%
Current Ratio 1.88
Quick Ratio 1.22
Altman-Z 3.19
F-Score6
WACC9.42%
ROIC/WACC0.81
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)-9.51%
EPS 3Y4.52%
EPS 5Y8.19%
EPS Q2Q%-4.05%
EPS Next Y1.23%
EPS Next 2Y7.19%
EPS Next 3Y6.36%
EPS Next 5Y8.02%
Revenue 1Y (TTM)-2.66%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%1.88%
Revenue Next Year4.19%
Revenue Next 2Y4.08%
Revenue Next 3Y3.14%
Revenue Next 5Y3.41%
EBIT growth 1Y-6.79%
EBIT growth 3Y3.33%
EBIT growth 5Y3.06%
EBIT Next Year43.22%
EBIT Next 3Y20.28%
EBIT Next 5Y15.35%
FCF growth 1Y906.28%
FCF growth 3Y-27.28%
FCF growth 5Y0.44%
OCF growth 1Y79.18%
OCF growth 3Y-20.09%
OCF growth 5Y0.97%