LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LZB - US5053361078 - Common Stock
38.63 USD
-0.32 (-0.82%)
38.63 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 excellent financial health rating, but there are some minor concerns on its profitability. LZB is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years LZB has been profitable.
In the past 5 years LZB always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.62%, LZB perfoms like the industry average, outperforming 55.74% of the companies in the same 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.
LZB has a Return On Invested Capital of 6.72%. This is comparable to the rest of the industry: LZB outperforms 49.18% 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 9.75%.
| 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.
LZB's Profit Margin has been stable in the last couple of years.
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.
LZB's Operating Margin has declined in the last couple of years.
LZB has a better Gross Margin (43.79%) than 80.33% 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
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.
The number of shares outstanding for LZB has been reduced compared to 5 years ago.
Compared to 1 year ago, LZB has a worse debt to assets ratio.
2.2 Solvency
LZB has an Altman-Z score of 3.05. This indicates that LZB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LZB (3.05) is comparable to the rest of the industry.
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 | 3.05 |
ROIC/WACC0.76
WACC8.79%
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.
LZB's Current ratio of 1.94 is on the low side compared to the rest of the industry. LZB is outperformed by 65.57% of its industry peers.
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's Quick ratio of 1.41 is fine compared to the rest of the industry. LZB outperforms 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.
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 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
Based on estimates for the next years, LZB will show a small growth in Earnings Per Share. The EPS will grow by 6.05% on average per year.
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-5.43%
EPS Next 2Y1.97%
EPS Next 3Y4.07%
EPS Next 5Y6.05%
Revenue Next Year1.75%
Revenue Next 2Y2.89%
Revenue Next 3Y1.84%
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
A Price/Earnings ratio of 13.90 indicates a correct valuation of LZB.
LZB's Price/Earnings ratio is in line with the industry average.
LZB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.68, the valuation of LZB can be described as correct.
LZB's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, LZB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
73.77% of the companies in the same industry are more expensive than LZB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LZB indicates a somewhat cheap valuation: LZB is cheaper than 73.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| EV/EBITDA | 6.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.18
EPS Next 2Y1.97%
EPS Next 3Y4.07%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.49%.
LZB's Dividend Yield is rather good when compared to the industry average which is at 3.09. LZB pays more dividend than 85.25% of the companies in the same industry.
LZB's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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 2Y1.97%
EPS Next 3Y4.07%
38.63
-0.32 (-0.82%)
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 Cap1.59B
Revenue(TTM)2.11B
Net Income(TTM)90.42M
Analysts80
Price Target43.35 (12.22%)
Short Float %4.33%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)8.15%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 12.68 | ||
| P/S | 0.76 | ||
| P/FCF | 12.76 | ||
| P/OCF | 7.76 | ||
| P/B | 1.53 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 6.66 |
EPS(TTM)2.78
EY7.2%
EPS(NY)3.05
Fwd EY7.89%
FCF(TTM)3.03
FCFY7.84%
OCF(TTM)4.98
OCFY12.89%
SpS51.09
BVpS25.2
TBVpS19.02
PEG (NY)N/A
PEG (5Y)2.18
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
WACC8.79%
ROIC/WACC0.76
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-5.43%
EPS Next 2Y1.97%
EPS Next 3Y4.07%
EPS Next 5Y6.05%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%0.28%
Revenue Next Year1.75%
Revenue Next 2Y2.89%
Revenue Next 3Y1.84%
Revenue Next 5Y2.15%
EBIT growth 1Y-6.73%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year29.64%
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 -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 5 / 10 and the dividend payout ratio is 40.2%.