LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LZB - US5053361078 - Common Stock
38.1 USD
-0.71 (-1.83%)
38.1 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LZB. LZB was compared to 60 industry peers in the Household Durables industry. LZB has an excellent financial health rating, but there are some minor concerns on its 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 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.
- The Return On Equity of LZB (8.70%) is comparable to the rest of the industry.
- 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.
- 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 9.71%.
| 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
- LZB has a Profit Margin of 4.29%. This is comparable to the rest of the industry: LZB outperforms 46.67% of its industry peers.
- 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 6.81%. This is comparable to the rest of the industry: LZB outperforms 48.33% of its industry peers.
- In the last couple of years the Operating Margin of LZB has declined.
- LZB's Gross Margin of 43.79% is amongst the best of the industry. LZB outperforms 81.67% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LZB is destroying value.
- LZB has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for LZB has been reduced compared to 5 years ago.
- The debt/assets ratio for LZB is higher compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of 3.04, LZB is in line with its industry, outperforming 48.33% of the companies in the same 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 | 3.04 |
ROIC/WACC0.71
WACC9.53%
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.
- Looking at the Current ratio, with a value of 1.94, LZB is doing worse than 66.67% of the companies in the same industry.
- A Quick Ratio of 1.41 indicates that LZB should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.41, LZB is in the better half of the industry, outperforming 68.33% of the companies in the same industry.
| 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%.
- LZB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.39% yearly.
- The Revenue has been growing slightly by 1.78% 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)-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
- The Earnings Per Share is expected to grow by 6.05% on average over the next years.
- The Revenue is expected to grow by 2.15% on average over the next years.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.71, which indicates a correct valuation of LZB.
- The rest of the industry has a similar Price/Earnings ratio as LZB.
- LZB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- LZB is valuated correctly with a Price/Forward Earnings ratio of 12.64.
- LZB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LZB is cheaper than 65.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. LZB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LZB is valued a bit cheaper than 76.67% 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 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.15
EPS Next 2Y1.41%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
- LZB has a Yearly Dividend Yield of 2.46%.
- 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
- On average, the dividend of LZB grows each year by 9.12%, which is quite nice.
- 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
- 40.20% of the earnings are spent on dividend by LZB. This is a bit on the high side, but may be sustainable.
- LZB's earnings are growing slower than its dividend. 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 13.71 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%.