LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - NYSE:LZB - US5053361078 - Common Stock
34.18 USD
+0.41 (+1.21%)
34.18 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LZB. LZB was compared to 63 industry peers in the Household Durables industry. Both the profitability and the financial health of LZB get a neutral evaluation. Nothing too spectacular is happening here. LZB has a valuation in line with the averages, but it does not seem to be growing.
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
LZB has a Return On Assets of 4.76%. This is comparable to the rest of the industry: LZB outperforms 57.14% of its industry peers.
LZB has a Return On Equity (9.01%) which is comparable to the rest of the industry.
LZB has a Return On Invested Capital (6.96%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LZB is in line with the industry average of 10.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 9.01% | ||
| ROIC | 6.96% |
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 (4.35%) which is in line with its industry peers.
In the last couple of years the Profit Margin of LZB has remained more or less at the same level.
LZB has a Operating Margin (6.93%) which is comparable to the rest of the industry.
LZB's Operating Margin has declined in the last couple of years.
LZB's Gross Margin of 43.79% is amongst the best of the industry. LZB outperforms 82.54% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.93% | ||
| PM (TTM) | 4.35% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
LZB has an Altman-Z score of 2.92. This is not the best score and indicates that LZB is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.92, LZB is in line with its industry, outperforming 52.38% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.78
WACC8.96%
2.3 Liquidity
LZB has a Current Ratio of 1.91. 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 1.91, LZB is not doing good in the industry: 65.08% of the companies in the same industry are doing better.
LZB has a Quick Ratio of 1.30. 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 decent Quick ratio value of 1.30, LZB is doing good in the industry, outperforming 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for LZB have decreased by -6.71% 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.
The Revenue has been growing slightly by 2.18% in the past year.
Measured over the past years, LZB shows a small growth in Revenue. The Revenue has been growing by 4.36% on average per year.
EPS 1Y (TTM)-6.71%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%-24.19%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%-0.67%
3.2 Future
LZB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.35% yearly.
Based on estimates for the next years, LZB will show a small growth in Revenue. The Revenue will grow by 2.91% on average per year.
EPS Next Y-12.56%
EPS Next 2Y1.97%
EPS Next 3Y1.68%
EPS Next 5Y4.35%
Revenue Next Year1.75%
Revenue Next 2Y2.89%
Revenue Next 3Y3.17%
Revenue Next 5Y2.91%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 12.29, the valuation of LZB can be described as correct.
LZB's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.41. LZB is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.22, the valuation of LZB can be described as reasonable.
Based on the Price/Forward Earnings ratio, LZB is valued a bit cheaper than the industry average as 68.25% of the companies are valued more expensively.
LZB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 11.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZB is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LZB indicates a somewhat cheap valuation: LZB is cheaper than 79.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.96 | ||
| EV/EBITDA | 5.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.93
EPS Next 2Y1.97%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.51%, 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 3.03. LZB pays more dividend than 84.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, LZB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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
38.86% of the earnings are spent on dividend by LZB. This is a low number and sustainable payout ratio.
LZB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.86%
EPS Next 2Y1.97%
EPS Next 3Y1.68%
34.18
+0.41 (+1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.26%
Inst Owner Change-2.68%
Ins Owners2.55%
Ins Owner Change16.34%
Market Cap1.41B
Analysts74.29
Price Target41.82 (22.35%)
Short Float %6.36%
Short Ratio4.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend0.84
Dividend Growth(5Y)9.12%
DP38.86%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.72%
Min EPS beat(2)-15.39%
Max EPS beat(2)-2.05%
EPS beat(4)1
Avg EPS beat(4)-2.41%
Min EPS beat(4)-15.39%
Max EPS beat(4)9.27%
EPS beat(8)4
Avg EPS beat(8)4.77%
EPS beat(12)8
Avg EPS beat(12)12.02%
EPS beat(16)11
Avg EPS beat(16)11.28%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)1.39%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)1.95%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)10
Avg Revenue beat(12)1.58%
Revenue beat(16)13
Avg Revenue beat(16)1.96%
PT rev (1m)-10.87%
PT rev (3m)-10.87%
EPS NQ rev (1m)-23.53%
EPS NQ rev (3m)-27.34%
EPS NY rev (1m)-20.98%
EPS NY rev (3m)-22.5%
Revenue NQ rev (1m)-2.26%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)-1.51%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 11.22 | ||
| P/S | 0.67 | ||
| P/FCF | 14.96 | ||
| P/OCF | 8.23 | ||
| P/B | 1.39 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 5.56 |
EPS(TTM)2.78
EY8.13%
EPS(NY)3.05
Fwd EY8.91%
FCF(TTM)2.28
FCFY6.68%
OCF(TTM)4.16
OCFY12.16%
SpS51.1
BVpS24.66
TBVpS18.43
PEG (NY)N/A
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 9.01% | ||
| ROCE | 9.67% | ||
| ROIC | 6.96% | ||
| ROICexc | 8.84% | ||
| ROICexgc | 11.27% | ||
| OM | 6.93% | ||
| PM (TTM) | 4.35% | ||
| GM | 43.79% | ||
| FCFM | 4.47% |
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%
ROICexcg growth 3Y-14.13%
ROICexcg 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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 168.21% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.24% | ||
| Profit Quality | 102.75% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.92 |
F-Score8
WACC8.96%
ROIC/WACC0.78
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)-6.71%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%-24.19%
EPS Next Y-12.56%
EPS Next 2Y1.97%
EPS Next 3Y1.68%
EPS Next 5Y4.35%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%-0.67%
Revenue Next Year1.75%
Revenue Next 2Y2.89%
Revenue Next 3Y3.17%
Revenue Next 5Y2.91%
EBIT growth 1Y-1.75%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year39.16%
EBIT Next 3Y12.57%
EBIT Next 5Y11.64%
FCF growth 1Y-31.15%
FCF growth 3Y261.09%
FCF growth 5Y-0.9%
OCF growth 1Y-13.51%
OCF growth 3Y33.34%
OCF growth 5Y2.66%