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LA-Z-BOY INC (LZB) Stock Fundamental Analysis

NYSE:LZB - New York Stock Exchange, Inc. - US5053361078 - Common Stock - Currency: USD

41.06  -0.47 (-1.13%)

After market: 41.06 0 (0%)

Fundamental Rating

6

Overall LZB gets a fundamental rating of 6 out of 10. We evaluated LZB against 64 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year LZB was profitable.
LZB had a positive operating cash flow in the past year.
LZB had positive earnings in each of the past 5 years.
LZB had a positive operating cash flow in each of the past 5 years.
LZB Yearly Net Income VS EBIT VS OCF VS FCFLZB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

1.2 Ratios

The Return On Assets of LZB (6.33%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 12.14%, LZB is in line with its industry, outperforming 57.81% of the companies in the same industry.
The Return On Invested Capital of LZB (7.75%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for LZB is in line with the industry average of 10.47%.
Industry RankSector 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%
LZB Yearly ROA, ROE, ROICLZB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

LZB has a Profit Margin of 5.92%. This is comparable to the rest of the industry: LZB outperforms 54.69% of its industry peers.
In the last couple of years the Profit Margin of LZB has grown nicely.
The Operating Margin of LZB (7.48%) is comparable to the rest of the industry.
LZB's Operating Margin has been stable in the last couple of years.
The Gross Margin of LZB (43.76%) is better than 81.25% of its industry peers.
LZB's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
LZB Yearly Profit, Operating, Gross MarginsLZB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

7

2. Health

2.1 Basic Checks

LZB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LZB has less shares outstanding than it did 1 year ago.
LZB has less shares outstanding than it did 5 years ago.
LZB has a worse debt/assets ratio than last year.
LZB Yearly Shares OutstandingLZB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
LZB Yearly Total Debt VS Total AssetsLZB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 3.10 indicates that LZB is not in any danger for bankruptcy at the moment.
LZB has a Altman-Z score (3.10) which is in line with its industry peers.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.1
ROIC/WACC0.85
WACC9.11%
LZB Yearly LT Debt VS Equity VS FCFLZB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

LZB has a Current Ratio of 1.85. 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 Current ratio value of 1.85, LZB is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
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.
The Quick ratio of LZB (1.21) is better than 65.63% of its industry peers.
Industry RankSector Rank
Current Ratio 1.85
Quick Ratio 1.21
LZB Yearly Current Assets VS Current LiabilitesLZB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

4

3. Growth

3.1 Past

The earnings per share for LZB have decreased by -1.99% in the last year.
LZB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.19% yearly.
Looking at the last year, LZB shows a small growth in Revenue. The Revenue has grown by 1.80% in the last year.
LZB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.24% yearly.
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

The Earnings Per Share is expected to grow by 7.11% on average over the next years.
The Revenue is expected to grow by 3.40% on average over the next years.
EPS Next Y-0.13%
EPS Next 2Y5.33%
EPS Next 3Y6.76%
EPS Next 5Y7.11%
Revenue Next Year4.29%
Revenue Next 2Y3.89%
Revenue Next 3Y3.9%
Revenue Next 5Y3.4%

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.
LZB Yearly Revenue VS EstimatesLZB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B 1.5B 2B
LZB Yearly EPS VS EstimatesLZB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.87, which indicates a correct valuation of LZB.
LZB's Price/Earnings is on the same level as the industry average.
LZB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.43.
A Price/Forward Earnings ratio of 12.42 indicates a correct valuation of LZB.
The rest of the industry has a similar Price/Forward Earnings ratio as LZB.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, LZB is valued a bit cheaper.
Industry RankSector Rank
PE 13.87
Fwd PE 12.42
LZB Price Earnings VS Forward Price EarningsLZB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

LZB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LZB is cheaper than 64.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LZB is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.28
EV/EBITDA 6.86
LZB Per share dataLZB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

LZB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.69
EPS Next 2Y5.33%
EPS Next 3Y6.76%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.09%, LZB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.61, LZB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, LZB has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.09%

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 Years4
Div Non Decr Years4
LZB Yearly Dividends per shareLZB Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

27.72% of the earnings are spent on dividend by LZB. This is a low number and sustainable payout ratio.
LZB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.72%
EPS Next 2Y5.33%
EPS Next 3Y6.76%
LZB Yearly Income VS Free CF VS DividendLZB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
LZB Dividend Payout.LZB Dividend Payout, showing the Payout Ratio.LZB Dividend Payout.PayoutRetained Earnings

LA-Z-BOY INC

NYSE:LZB (6/4/2025, 8:04:00 PM)

After market: 41.06 0 (0%)

41.06

-0.47 (-1.13%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-18 2025-02-18/amc
Earnings (Next)06-24 2025-06-24/amc
Inst Owners99.98%
Inst Owner Change6.88%
Ins Owners0.73%
Ins Owner Change0.23%
Market Cap1.70B
Analysts74.29
Price Target46.92 (14.27%)
Short Float %5.79%
Short Ratio4.88
Dividend
Industry RankSector Rank
Dividend Yield 2.09%
Yearly Dividend0.76
Dividend Growth(5Y)8.74%
DP27.72%
Div Incr Years4
Div Non Decr Years4
Ex-Date06-03 2025-06-03 (0.22)
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 13.87
Fwd PE 12.42
P/S 0.81
P/FCF 15.28
P/OCF 9.52
P/B 1.66
P/tB 2.26
EV/EBITDA 6.86
EPS(TTM)2.96
EY7.21%
EPS(NY)3.31
Fwd EY8.05%
FCF(TTM)2.69
FCFY6.55%
OCF(TTM)4.31
OCFY10.5%
SpS50.66
BVpS24.73
TBVpS18.14
PEG (NY)N/A
PEG (5Y)1.69
Profitability
Industry RankSector 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 RankSector 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 3.1
F-Score6
WACC9.11%
ROIC/WACC0.85
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 Y-0.13%
EPS Next 2Y5.33%
EPS Next 3Y6.76%
EPS Next 5Y7.11%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%4.27%
Revenue Next Year4.29%
Revenue Next 2Y3.89%
Revenue Next 3Y3.9%
Revenue Next 5Y3.4%
EBIT growth 1Y1.06%
EBIT growth 3Y3.33%
EBIT growth 5Y3.06%
EBIT Next Year42.91%
EBIT Next 3Y19.8%
EBIT Next 5Y14.79%
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%