LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LZB - US5053361078 - Common Stock
38.03 USD
-0.78 (-2.01%)
We assign a fundamental rating of 5 out of 10 to LZB. LZB was compared to 60 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 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.
- 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 of 4.62%. This is comparable to the rest of the industry: LZB outperforms 53.33% of its industry peers.
- LZB's Return On Equity of 8.70% is in line compared to the rest of the industry. LZB outperforms 46.67% of its industry peers.
- LZB's Return On Invested Capital of 6.72% is in line compared to the rest of the industry. LZB outperforms 50.00% of 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 9.71%.
| 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
- With a Profit Margin value of 4.29%, LZB perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
- 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 48.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of LZB has declined.
- With an excellent Gross Margin value of 43.79%, LZB belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
- LZB's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- LZB has a worse debt/assets ratio than last year.
2.2 Solvency
- LZB has an Altman-Z score of 3.04. This indicates that LZB is financially healthy and has little risk of bankruptcy at the moment.
- LZB has a Altman-Z score (3.04) which is in line with its industry peers.
- 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 | 3.04 |
ROIC/WACC0.7
WACC9.55%
2.3 Liquidity
- LZB has a Current Ratio of 1.94. 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 1.94, LZB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- LZB has a Quick Ratio of 1.41. This is a normal value and indicates that LZB is financially healthy and should not expect problems in meeting its short term obligations.
- LZB has a Quick ratio of 1.41. This is in the better half of the industry: LZB outperforms 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- LZB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.76%.
- 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 1.78% in the past year.
- The Revenue has been growing slightly by 4.36% on average over the past years.
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
- LZB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.05% yearly.
- Based on estimates for the next years, LZB will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- LZB is valuated correctly with a Price/Earnings ratio of 13.68.
- 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 (27.30), we can say LZB is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 12.62, LZB is valued correctly.
- 65.00% of the companies in the same industry are more expensive than LZB, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of LZB to the average of the S&P500 Index (24.32), we can say LZB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LZB is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
- 73.33% 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 | 12.56 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.14
EPS Next 2Y1.41%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.46%, 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 1.16. LZB pays more dividend than 85.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, LZB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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
- LZB pays out 40.20% of its income as dividend. 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%
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.
What is the valuation status of LA-Z-BOY INC (LZB) stock?
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 are the PE and PB ratios of LA-Z-BOY INC (LZB) stock?
The Price/Earnings (PE) ratio for LA-Z-BOY INC (LZB) is 13.68 and the Price/Book (PB) ratio is 1.51.
How sustainable is the dividend of LA-Z-BOY INC (LZB) stock?
The dividend rating of LA-Z-BOY INC (LZB) is 6 / 10 and the dividend payout ratio is 40.2%.