LA-Z-BOY INC (LZB)
US5053361078 - Common Stock
Overall LZB gets a fundamental rating of 5 out of 10. We evaluated LZB against 64 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 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.
LZB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LZB has a Return On Assets (6.33%) which is comparable to the rest of the industry.
LZB has a Return On Equity (12.14%) which is in line with its industry peers.
LZB has a Return On Invested Capital (7.50%) 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 10.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 12.14% | ||
| ROIC | 7.5% |
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 (5.89%) which is comparable to the rest of the industry.
LZB's Profit Margin has improved in the last couple of years.
LZB has a Operating Margin (7.21%) which is comparable to the rest of the industry.
LZB's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 43.15%, LZB belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
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 | 7.21% | ||
| PM (TTM) | 5.89% | ||
| GM | 43.15% |
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
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
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.
LZB's Altman-Z score of 3.19 is in line compared to the rest of the industry. LZB outperforms 48.39% of 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 | 3.19 |
ROIC/WACC0.8
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.90 indicates that LZB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.90, LZB is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
A Quick Ratio of 1.28 indicates that LZB should not have too much problems paying its short term obligations.
LZB's Quick ratio of 1.28 is fine compared to the rest of the industry. LZB outperforms 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The earnings per share for LZB have decreased by -9.51% 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -12.87%.
The Revenue has been growing slightly by 3.24% on average over the past years.
EPS 1Y (TTM)-9.51%
EPS 3Y4.52%
EPS 5Y8.19%
EPS Q2Q%-4.05%
Revenue 1Y (TTM)-12.87%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%1.88%
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 4.06% on average per year.
LZB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
EPS Next Y0.32%
EPS Next 2Y6.93%
EPS Next 3Y6.36%
EPS Next 5Y4.06%
Revenue Next Year3.45%
Revenue Next 2Y3.7%
Revenue Next 3Y3.14%
Revenue Next 5Y2.92%
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 decreasing.
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
The Price/Earnings ratio is 14.89, 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 (28.96), we can say LZB is valued slightly cheaper.
LZB is valuated correctly with a Price/Forward Earnings ratio of 12.89.
The rest of the industry has a similar Price/Forward Earnings ratio as LZB.
When comparing the Price/Forward Earnings ratio of LZB to the average of the S&P500 Index (23.82), we can say LZB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 12.89 |
4.2 Price Multiples
79.03% of the companies in the same industry are more expensive than LZB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LZB indicates a somewhat cheap valuation: LZB is cheaper than 77.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 7.35 |
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)46.22
PEG (5Y)1.82
EPS Next 2Y6.93%
EPS Next 3Y6.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.06%, LZB has a reasonable but not impressive dividend return.
LZB's Dividend Yield is rather good when compared to the industry average which is at 2.47. LZB pays more dividend than 83.87% of the companies in the same industry.
LZB's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
The dividend of LZB is nicely growing with an annual growth rate of 8.74%!
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
27.32% 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.
DP27.32%
EPS Next 2Y6.93%
EPS Next 3Y6.36%
LA-Z-BOY INC
NYSE:LZB (11/22/2024, 10:27:04 AM)
43.925
+0.52 (+1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 12.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)46.22
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 12.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.21% | ||
| PM (TTM) | 5.89% | ||
| GM | 43.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.51%
EPS 3Y4.52%
EPS 5Y
EPS Q2Q%
EPS Next Y0.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.87%
Revenue growth 3Y5.68%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y