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Why LA-Z-BOY INC (NYSE:LZB) should be investigated by quality investors.

By Mill Chart

Last update: Sep 15, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LA-Z-BOY INC (NYSE:LZB) is suited for quality investing. Investors should of couse do their own research, but we spotted LA-Z-BOY INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • LA-Z-BOY INC has shown strong performance in revenue growth over the past 5 years, with a 8.2% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 17.54%, LA-Z-BOY INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a Debt/Free Cash Flow Ratio of 0.0, LA-Z-BOY INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a robust Profit Quality (5-year) ratio of 130.0%, LA-Z-BOY INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • LA-Z-BOY INC has consistently achieved strong EBIT growth over the past 5 years, with a 10.32% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of LA-Z-BOY INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What is the full fundamental picture of NYSE:LZB telling us.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

LZB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making LZB a very profitable company, without any liquidiy or solvency issues. LZB has a valuation in line with the averages, but it does not seem to be growing.

Check the latest full fundamental report of LZB for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.