LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - NYSE:LZB - US5053361078 - Common Stock
30.36 USD
-0.45 (-1.46%)
30.36 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 an average financial health and profitability rating. LZB is valued correctly, but it does not seem to be growing.
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.
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
LZB's Return On Assets of 4.76% is in line compared to the rest of the industry. LZB outperforms 57.38% of its industry peers.
LZB has a Return On Equity of 9.01%. This is comparable to the rest of the industry: LZB outperforms 49.18% of its industry peers.
LZB's Return On Invested Capital of 6.96% is in line compared to the rest of the industry. LZB outperforms 50.82% of its industry peers.
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 9.86%.
| 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
Looking at the Profit Margin, with a value of 4.35%, LZB is in line with its industry, outperforming 50.82% 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.
LZB has a Operating Margin of 6.93%. This is comparable to the rest of the industry: LZB outperforms 49.18% of its industry peers.
LZB's Operating Margin has declined in the last couple of years.
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
LZB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LZB has less shares outstanding than it did 1 year ago.
LZB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LZB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.84 indicates that LZB is not a great score, but indicates only limited risk for bankruptcy at the moment.
LZB has a Altman-Z score of 2.84. This is comparable to the rest of the industry: LZB outperforms 50.82% 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 | 2.84 |
ROIC/WACC0.79
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.91 indicates that LZB should not have too much problems paying its short term obligations.
The Current ratio of LZB (1.91) is worse than 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.
Looking at the Quick ratio, with a value of 1.30, LZB is in the better half of the industry, outperforming 63.93% 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.
The Earnings Per Share has been growing slightly by 6.39% on average over the past years.
The Revenue has been growing slightly by 2.18% in the past year.
LZB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.36% yearly.
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
Based on estimates for the next years, LZB will show a small growth in Earnings Per Share. The EPS will grow by 4.35% on average per year.
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 3Y1.68%
EPS Next 5Y4.35%
Revenue Next Year1.75%
Revenue Next 2Y2.89%
Revenue Next 3Y2.88%
Revenue Next 5Y2.91%
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.
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
A Price/Earnings ratio of 10.92 indicates a reasonable valuation of LZB.
Based on the Price/Earnings ratio, LZB is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LZB to the average of the S&P500 Index (25.89), we can say LZB is valued rather cheaply.
A Price/Forward Earnings ratio of 9.96 indicates a reasonable valuation of LZB.
67.21% of the companies in the same industry are more expensive than LZB, based on the Price/Forward Earnings ratio.
LZB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 9.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZB is valued cheaper than 90.16% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LZB indicates a somewhat cheap valuation: LZB is cheaper than 70.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 4.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.71
EPS Next 2Y1.97%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.86%.
In the last 3 months the price of LZB has falen by -21.47%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
LZB's Dividend Yield is rather good when compared to the industry average which is at 3.31. LZB pays more dividend than 85.25% of the companies in the same industry.
LZB's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of LZB is nicely growing with an annual growth rate of 9.12%!
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
38.86% 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.
DP38.86%
EPS Next 2Y1.97%
EPS Next 3Y1.68%
30.36
-0.45 (-1.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.59%
Inst Owner Change2.95%
Ins Owners2.61%
Ins Owner Change16.34%
Market Cap1.25B
Revenue(TTM)2.11B
Net Income(TTM)91.60M
Analysts74.29
Price Target41.82 (37.75%)
Short Float %5.9%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 9.96 | ||
| P/S | 0.59 | ||
| P/FCF | 13.29 | ||
| P/OCF | 7.31 | ||
| P/B | 1.23 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 4.93 |
EPS(TTM)2.78
EY9.16%
EPS(NY)3.05
Fwd EY10.04%
FCF(TTM)2.28
FCFY7.52%
OCF(TTM)4.16
OCFY13.69%
SpS51.1
BVpS24.66
TBVpS18.43
PEG (NY)N/A
PEG (5Y)1.71
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 | 2.84 |
F-Score8
WACC8.79%
ROIC/WACC0.79
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 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 3Y2.88%
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 6 / 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%.