LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - NYSE:LZB - US5053361078 - Common Stock
31.7 USD
-0.51 (-1.58%)
31.7 USD
0 (0%)
LZB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. LZB has only an average score on both its financial health and profitability. 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.
In the past year LZB had a positive cash flow from operations.
In the past 5 years LZB has always been profitable.
Each year in the past 5 years LZB had a positive operating cash flow.
1.2 Ratios
LZB's Return On Assets of 4.76% is in line compared to the rest of the industry. LZB outperforms 55.74% of its industry peers.
LZB's Return On Equity of 9.01% is in line compared to the rest of the industry. LZB outperforms 47.54% of its industry peers.
LZB has a Return On Invested Capital of 6.96%. This is comparable to the rest of the industry: LZB outperforms 47.54% 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 10.33%.
| 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
The Profit Margin of LZB (4.35%) is comparable to the rest of the industry.
LZB's Profit Margin has been stable in the last couple of years.
LZB has a Operating Margin of 6.93%. This is comparable to the rest of the industry: LZB outperforms 47.54% of its industry peers.
In the last couple of years the Operating Margin of LZB has declined.
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 | 6.93% | ||
| 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.
Compared to 1 year ago, LZB has less shares outstanding
Compared to 5 years ago, LZB has less shares outstanding
Compared to 1 year ago, LZB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.88 indicates that LZB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.88, LZB is in line with its industry, outperforming 52.46% of the companies in the same 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 | 2.88 |
ROIC/WACC0.78
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.91 indicates that LZB should not have too much problems paying its short term obligations.
LZB has a Current ratio of 1.91. This is in the lower half of the industry: LZB underperforms 67.21% of its industry peers.
A Quick Ratio of 1.30 indicates that LZB should not have too much problems paying its short term obligations.
LZB has a better Quick ratio (1.30) than 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
LZB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.71%.
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.
The Revenue has been growing slightly by 4.36% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.35% on average over the next years.
The Revenue is expected to grow by 2.91% on average over the next years.
EPS Next Y-5.43%
EPS Next 2Y1.97%
EPS Next 3Y9.51%
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 11.40, the valuation of LZB can be described as reasonable.
LZB's Price/Earnings is on the same level as the industry average.
LZB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.10.
Based on the Price/Forward Earnings ratio of 10.40, the valuation of LZB can be described as reasonable.
Based on the Price/Forward Earnings ratio, LZB is valued a bit cheaper than 65.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, LZB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
LZB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LZB is cheaper than 86.89% of the companies in the same industry.
70.49% of the companies in the same industry are more expensive than LZB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.88 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.79
EPS Next 2Y1.97%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.73%, LZB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.14, LZB pays a better dividend. On top of this LZB pays more dividend than 85.25% of the companies listed in the same industry.
LZB's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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
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 3Y9.51%
31.7
-0.51 (-1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.59%
Inst Owner Change0.34%
Ins Owners2.61%
Ins Owner Change16.34%
Market Cap1.31B
Revenue(TTM)2.11B
Net Income(TTM)91.60M
Analysts74.29
Price Target41.82 (31.92%)
Short Float %5.9%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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)0%
PT rev (3m)-10.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 10.4 | ||
| P/S | 0.62 | ||
| P/FCF | 13.88 | ||
| P/OCF | 7.63 | ||
| P/B | 1.29 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)2.78
EY8.77%
EPS(NY)3.05
Fwd EY9.61%
FCF(TTM)2.28
FCFY7.21%
OCF(TTM)4.16
OCFY13.11%
SpS51.1
BVpS24.66
TBVpS18.43
PEG (NY)N/A
PEG (5Y)1.79
Graham Number39.27
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%
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 Turnover1.09
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 | 2.88 |
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-5.43%
EPS Next 2Y1.97%
EPS Next 3Y9.51%
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 Year29.64%
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%
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 5 / 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 -5.43% 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 38.86%.