LA-Z-BOY INC (LZB) Stock Fundamental Analysis
NYSE:LZB - New York Stock Exchange, Inc. - US5053361078 - Common Stock - Currency: USD
Overall LZB gets a fundamental rating of 6 out of 10. We evaluated LZB against 66 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LZB was profitable.
LZB had a positive operating cash flow in the past year.
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
The Return On Assets of LZB (6.33%) is comparable to the rest of the industry.
LZB has a Return On Equity (12.14%) which is comparable to the rest of the industry.
LZB's Return On Invested Capital of 7.75% is in line compared to the rest of the industry. LZB outperforms 54.55% of its industry peers.
LZB had an Average Return On Invested Capital over the past 3 years of 10.40%. This is in line with the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 12.14% | ||
| ROIC | 7.75% |
ROA(3y)7.42%
ROA(5y)6.72%
ROE(3y)15.58%
ROE(5y)14.31%
ROIC(3y)10.4%
ROIC(5y)9.85%
1.3 Margins
LZB has a Profit Margin (5.92%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LZB has grown nicely.
With a Operating Margin value of 7.48%, LZB perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
LZB's Operating Margin has been stable in the last couple of years.
The Gross Margin of LZB (43.76%) is better than 81.82% 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 | 7.48% | ||
| PM (TTM) | 5.92% | ||
| GM | 43.76% |
OM growth 3Y-2.23%
OM growth 5Y-0.17%
PM growth 3Y-0.79%
PM growth 5Y8.89%
GM growth 3Y0.3%
GM growth 5Y1.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LZB is still creating some 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
The debt/assets ratio for LZB is higher compared to a year ago.
2.2 Solvency
LZB has an Altman-Z score of 3.12. This indicates that LZB is financially healthy and has little risk of bankruptcy at the moment.
LZB's Altman-Z score of 3.12 is in line compared to the rest of the industry. LZB outperforms 51.52% of 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 | 3.12 |
ROIC/WACC0.86
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.85 indicates that LZB should not have too much problems paying its short term obligations.
LZB has a Current ratio of 1.85. This is in the lower half of the industry: LZB underperforms 69.70% of its industry peers.
LZB has a Quick Ratio of 1.21. 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 decent Quick ratio value of 1.21, LZB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
LZB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.99%.
The Earnings Per Share has been growing by 8.19% on average over the past years. This is quite good.
LZB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.80%.
The Revenue has been growing slightly by 3.24% on average over the past years.
EPS 1Y (TTM)-1.99%
EPS 3Y4.52%
EPS 5Y8.19%
EPS Q2Q%1.49%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%4.27%
3.2 Future
Based on estimates for the next years, LZB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.02% on average per year.
Based on estimates for the next years, LZB will show a small growth in Revenue. The Revenue will grow by 3.41% on average per year.
EPS Next Y1.34%
EPS Next 2Y7.19%
EPS Next 3Y6.36%
EPS Next 5Y8.02%
Revenue Next Year4.19%
Revenue Next 2Y4.08%
Revenue Next 3Y3.14%
Revenue Next 5Y3.41%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.23, the valuation of LZB can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as LZB.
Compared to an average S&P500 Price/Earnings ratio of 29.71, LZB is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.30, LZB is valued correctly.
LZB's Price/Forward Earnings is on the same level as the industry average.
LZB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 12.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZB is valued a bit cheaper than 66.67% of the companies in the same industry.
LZB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LZB is cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.74 | ||
| EV/EBITDA | 7.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LZB may justify a higher PE ratio.
PEG (NY)10.63
PEG (5Y)1.74
EPS Next 2Y7.19%
EPS Next 3Y6.36%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 1.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.10, LZB pays a better dividend. On top of this LZB pays more dividend than 81.82% of the companies listed in the same industry.
LZB's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
The dividend of LZB is nicely growing with an annual growth rate of 8.74%!
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)8.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
LZB pays out 27.72% of its income as dividend. This is a sustainable payout ratio.
LZB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.72%
EPS Next 2Y7.19%
EPS Next 3Y6.36%
42.11
-0.12 (-0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners99.98%
Inst Owner Change-2.19%
Ins Owners0.73%
Ins Owner Change-0.09%
Market Cap1.75B
Analysts48
Price Target46.92 (11.42%)
Short Float %5.94%
Short Ratio5.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend0.76
Dividend Growth(5Y)8.74%
DP27.72%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.9%
Min EPS beat(2)-1.47%
Max EPS beat(2)9.27%
EPS beat(4)3
Avg EPS beat(4)11.42%
Min EPS beat(4)-1.47%
Max EPS beat(4)35.01%
EPS beat(8)6
Avg EPS beat(8)12.83%
EPS beat(12)10
Avg EPS beat(12)17.55%
EPS beat(16)12
Avg EPS beat(16)13.16%
Revenue beat(2)2
Avg Revenue beat(2)0.98%
Min Revenue beat(2)0.01%
Max Revenue beat(2)1.95%
Revenue beat(4)4
Avg Revenue beat(4)2.59%
Min Revenue beat(4)0.01%
Max Revenue beat(4)6.12%
Revenue beat(8)7
Avg Revenue beat(8)1.33%
Revenue beat(12)11
Avg Revenue beat(12)2.21%
Revenue beat(16)14
Avg Revenue beat(16)2.59%
PT rev (1m)0%
PT rev (3m)6.98%
EPS NQ rev (1m)-5.72%
EPS NQ rev (3m)-5.72%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 12.3 | ||
| P/S | 0.84 | ||
| P/FCF | 15.74 | ||
| P/OCF | 9.81 | ||
| P/B | 1.71 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 7.01 |
EPS(TTM)2.96
EY7.03%
EPS(NY)3.42
Fwd EY8.13%
FCF(TTM)2.68
FCFY6.35%
OCF(TTM)4.29
OCFY10.19%
SpS50.43
BVpS24.62
TBVpS18.05
PEG (NY)10.63
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 12.14% | ||
| ROCE | 10.4% | ||
| ROIC | 7.75% | ||
| ROICexc | 9.83% | ||
| ROICexgc | 12.76% | ||
| OM | 7.48% | ||
| PM (TTM) | 5.92% | ||
| GM | 43.76% | ||
| FCFM | 5.31% |
ROA(3y)7.42%
ROA(5y)6.72%
ROE(3y)15.58%
ROE(5y)14.31%
ROIC(3y)10.4%
ROIC(5y)9.85%
ROICexc(3y)13.54%
ROICexc(5y)13.27%
ROICexgc(3y)17.64%
ROICexgc(5y)17.41%
ROCE(3y)13.96%
ROCE(5y)13.39%
ROICexcg growth 3Y-10.85%
ROICexcg growth 5Y-9.43%
ROICexc growth 3Y-9.31%
ROICexc growth 5Y-7.14%
OM growth 3Y-2.23%
OM growth 5Y-0.17%
PM growth 3Y-0.79%
PM growth 5Y8.89%
GM growth 3Y0.3%
GM growth 5Y1.36%
F-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 142.43% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.5% | ||
| Profit Quality | 89.55% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 3.12 |
F-Score6
WACC8.98%
ROIC/WACC0.86
Cap/Depr(3y)157.97%
Cap/Depr(5y)147.3%
Cap/Sales(3y)2.93%
Cap/Sales(5y)2.74%
Profit Quality(3y)59.13%
Profit Quality(5y)117.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.99%
EPS 3Y4.52%
EPS 5Y8.19%
EPS Q2Q%1.49%
EPS Next Y1.34%
EPS Next 2Y7.19%
EPS Next 3Y6.36%
EPS Next 5Y8.02%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%4.27%
Revenue Next Year4.19%
Revenue Next 2Y4.08%
Revenue Next 3Y3.14%
Revenue Next 5Y3.41%
EBIT growth 1Y1.06%
EBIT growth 3Y3.33%
EBIT growth 5Y3.06%
EBIT Next Year43.22%
EBIT Next 3Y20.28%
EBIT Next 5Y15.35%
FCF growth 1Y29.81%
FCF growth 3Y-27.28%
FCF growth 5Y0.44%
OCF growth 1Y10.65%
OCF growth 3Y-20.09%
OCF growth 5Y0.97%