LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LZB - US5053361078 - Common Stock
39.39 USD
+0.3 (+0.77%)
39.39 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LZB. LZB was compared to 61 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.
LZB had a positive operating cash flow in the past year.
LZB had positive earnings in each of the past 5 years.
LZB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LZB (4.62%) is comparable to the rest of the industry.
With a Return On Equity value of 8.70%, LZB perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
The Return On Invested Capital of LZB (6.72%) is comparable to the rest of the industry.
LZB had an Average Return On Invested Capital over the past 3 years of 8.59%. This 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's Profit Margin of 4.29% is in line compared 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.
Looking at the Operating Margin, with a value of 6.81%, LZB is in line with its industry, outperforming 49.18% of the companies in the same industry.
In the last couple of years the Operating Margin of LZB has declined.
LZB's Gross Margin of 43.79% is amongst the best of the industry. LZB outperforms 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.
The number of shares outstanding for LZB has been reduced compared to 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 3.05 indicates that LZB is not in any danger for bankruptcy at the moment.
The Altman-Z score of LZB (3.05) is comparable to the rest of the industry.
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 | 3.05 |
ROIC/WACC0.73
WACC9.23%
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.
A Quick Ratio of 1.41 indicates that LZB should not have too much problems paying 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
The earnings per share for LZB have decreased by -5.76% 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.
LZB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.78%.
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)-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
The Earnings Per Share is expected to grow by 6.05% on average over the next years.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 14.17 indicates a correct valuation of LZB.
Compared to the rest of the industry, the Price/Earnings ratio of LZB is on the same level as its industry peers.
LZB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.38.
The Price/Forward Earnings ratio is 13.07, which indicates a correct valuation of LZB.
LZB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LZB is cheaper than 60.66% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LZB to the average of the S&P500 Index (23.83), we can say LZB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 13.07 |
4.2 Price Multiples
LZB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LZB is cheaper than 73.77% of the companies in the same industry.
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 | 13.01 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.22
EPS Next 2Y1.41%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.48%. 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 1.17. LZB pays more dividend than 85.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, LZB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
On average, the dividend of LZB grows each year by 9.12%, 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)9.12%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
40.20% of the earnings are spent on dividend by LZB. This is a bit on the high side, but may be sustainable.
The dividend of LZB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.2%
EPS Next 2Y1.41%
EPS Next 3Y9.51%
39.39
+0.3 (+0.77%)
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 Cap1.62B
Revenue(TTM)2.11B
Net Income(TTM)90.42M
Analysts80
Price Target43.35 (10.05%)
Short Float %4.98%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 | 14.17 | ||
| Fwd PE | 13.07 | ||
| P/S | 0.77 | ||
| P/FCF | 13.01 | ||
| P/OCF | 7.91 | ||
| P/B | 1.56 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 6.69 |
EPS(TTM)2.78
EY7.06%
EPS(NY)3.01
Fwd EY7.65%
FCF(TTM)3.03
FCFY7.69%
OCF(TTM)4.98
OCFY12.64%
SpS51.09
BVpS25.2
TBVpS19.02
PEG (NY)N/A
PEG (5Y)2.22
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 | 3.05 |
F-Score8
WACC9.23%
ROIC/WACC0.73
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%.