LA-Z-BOY INC (LZB) Stock Fundamental Analysis
NYSE:LZB - New York Stock Exchange, Inc. - US5053361078 - Common Stock - Currency: USD
LZB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. LZB is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LZB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LZB was profitable.
In the past year LZB had a positive cash flow from operations.
LZB had positive earnings in each of the past 5 years.
In the past 5 years LZB always reported a positive cash flow from operatings.
1.2 Ratios
LZB's Return On Assets of 5.18% is in line compared to the rest of the industry. LZB outperforms 56.25% of its industry peers.
LZB has a Return On Equity of 9.75%. This is comparable to the rest of the industry: LZB outperforms 51.56% of its industry peers.
The Return On Invested Capital of LZB (7.49%) 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 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 9.75% | ||
| ROIC | 7.49% |
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 (4.72%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LZB has remained more or less at the same level.
LZB's Operating Margin of 7.42% is in line compared to the rest of the industry. LZB outperforms 53.13% of its industry peers.
LZB's Operating Margin has declined in the last couple of years.
LZB has a better Gross Margin (43.92%) than 81.25% of its industry peers.
LZB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.42% | ||
| PM (TTM) | 4.72% | ||
| GM | 43.92% |
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.
The number of shares outstanding for LZB has been reduced compared to 1 year ago.
Compared to 5 years ago, LZB has less shares outstanding
LZB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.06 indicates that LZB is not in any danger for bankruptcy at the moment.
LZB has a Altman-Z score (3.06) which 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 | 3.06 |
ROIC/WACC0.74
WACC10.12%
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 68.75% of its industry peers.
LZB has a Quick Ratio of 1.31. This is a normal value and indicates that LZB is financially healthy and should not expect problems in meeting its short term obligations.
LZB's Quick ratio of 1.31 is fine compared to the rest of the industry. LZB outperforms 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The earnings per share for LZB have decreased by -1.68% in the last year.
LZB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.39% yearly.
LZB shows a small growth in Revenue. In the last year, the Revenue has grown by 3.04%.
The Revenue has been growing slightly by 4.36% on average over the past years.
EPS 1Y (TTM)-1.68%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%-3.16%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%3.13%
3.2 Future
The Earnings Per Share is expected to grow by 9.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y12.83%
EPS Next 2Y11.24%
EPS Next 3Y9.51%
EPS Next 5Y9.69%
Revenue Next Year3.45%
Revenue Next 2Y3.66%
Revenue Next 3Y3.17%
Revenue Next 5Y3.21%
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 accelerating.
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 13.19, the valuation of LZB can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as LZB.
LZB is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.69, the valuation of LZB can be described as reasonable.
LZB's Price/Forward Earnings ratio is in line with the industry average.
LZB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 11.69 |
4.2 Price Multiples
76.56% of the companies in the same industry are more expensive than LZB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LZB is valued a bit cheaper than the industry average as 76.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.12 | ||
| EV/EBITDA | 5.91 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.03
PEG (5Y)2.07
EPS Next 2Y11.24%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.34%.
LZB's Dividend Yield is rather good when compared to the industry average which is at 3.49. LZB pays more dividend than 82.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, LZB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
35.11% of the earnings are spent on dividend by LZB. This is a low number and sustainable payout ratio.
LZB's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP35.11%
EPS Next 2Y11.24%
EPS Next 3Y9.51%
38.65
+1.48 (+3.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners104.68%
Inst Owner Change6.88%
Ins Owners0.73%
Ins Owner Change19.09%
Market Cap1.60B
Analysts74.29
Price Target46.92 (21.4%)
Short Float %7.06%
Short Ratio6.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend0.84
Dividend Growth(5Y)9.12%
DP35.11%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.76%
Min EPS beat(2)-2.05%
Max EPS beat(2)-1.47%
EPS beat(4)2
Avg EPS beat(4)2.16%
Min EPS beat(4)-2.05%
Max EPS beat(4)9.27%
EPS beat(8)5
Avg EPS beat(8)8.06%
EPS beat(12)9
Avg EPS beat(12)16.12%
EPS beat(16)11
Avg EPS beat(16)12.04%
Revenue beat(2)2
Avg Revenue beat(2)0.7%
Min Revenue beat(2)0.01%
Max Revenue beat(2)1.39%
Revenue beat(4)4
Avg Revenue beat(4)1.41%
Min Revenue beat(4)0.01%
Max Revenue beat(4)2.28%
Revenue beat(8)7
Avg Revenue beat(8)0.97%
Revenue beat(12)11
Avg Revenue beat(12)2.16%
Revenue beat(16)14
Avg Revenue beat(16)2.48%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 11.69 | ||
| P/S | 0.76 | ||
| P/FCF | 14.12 | ||
| P/OCF | 8.52 | ||
| P/B | 1.56 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 5.91 |
EPS(TTM)2.93
EY7.58%
EPS(NY)3.31
Fwd EY8.55%
FCF(TTM)2.74
FCFY7.08%
OCF(TTM)4.54
OCFY11.73%
SpS51.08
BVpS24.72
TBVpS18.5
PEG (NY)1.03
PEG (5Y)2.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 9.75% | ||
| ROCE | 10.42% | ||
| ROIC | 7.49% | ||
| ROICexc | 9.61% | ||
| ROICexgc | 12.31% | ||
| OM | 7.42% | ||
| PM (TTM) | 4.72% | ||
| GM | 43.92% | ||
| FCFM | 5.36% |
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 Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 159.17% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 391.05 | ||
| Cash Conversion | 92.21% | ||
| Profit Quality | 113.5% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.06 |
F-Score8
WACC10.12%
ROIC/WACC0.74
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)-1.68%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%-3.16%
EPS Next Y12.83%
EPS Next 2Y11.24%
EPS Next 3Y9.51%
EPS Next 5Y9.69%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%3.13%
Revenue Next Year3.45%
Revenue Next 2Y3.66%
Revenue Next 3Y3.17%
Revenue Next 5Y3.21%
EBIT growth 1Y3.75%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year40.34%
EBIT Next 3Y19.05%
EBIT Next 5Y15.96%
FCF growth 1Y8.05%
FCF growth 3Y261.09%
FCF growth 5Y-0.9%
OCF growth 1Y18.43%
OCF growth 3Y33.34%
OCF growth 5Y2.66%