LA-Z-BOY INC (LZB)

US5053361078 - Common Stock

33.68  +0.15 (+0.45%)

After market: 33.68 0 (0%)

Fundamental Rating

5

Taking everything into account, LZB scores 5 out of 10 in our fundamental rating. LZB was compared to 68 industry peers in the Household Durables industry. Both the profitability and the financial health of LZB get a neutral evaluation. Nothing too spectacular is happening here. LZB has a valuation in line with the averages, but it does not seem to be growing.



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.
In the past 5 years LZB always reported a positive cash flow from operatings.

1.2 Ratios

LZB has a Return On Assets (6.14%) which is comparable to the rest of the industry.
LZB has a Return On Equity (12.04%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 7.75%, LZB perfoms like the industry average, outperforming 56.72% of the companies in the same industry.
LZB had an Average Return On Invested Capital over the past 3 years of 10.68%. This is in line with the industry average of 10.06%.
Industry RankSector Rank
ROA 6.14%
ROE 12.04%
ROIC 7.75%
ROA(3y)7.26%
ROA(5y)6.73%
ROE(3y)16.09%
ROE(5y)13.86%
ROIC(3y)10.68%
ROIC(5y)10.6%

1.3 Margins

With a Profit Margin value of 5.73%, LZB perfoms like the industry average, outperforming 50.75% of the companies in the same industry.
LZB's Profit Margin has improved in the last couple of years.
LZB has a Operating Margin of 7.53%. This is comparable to the rest of the industry: LZB outperforms 53.73% of its industry peers.
In the last couple of years the Operating Margin of LZB has grown nicely.
With an excellent Gross Margin value of 43.88%, LZB belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
LZB's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.53%
PM (TTM) 5.73%
GM 43.88%
OM growth 3Y1.72%
OM growth 5Y1.95%
PM growth 3Y12.19%
PM growth 5Y4.77%
GM growth 3Y0.47%
GM growth 5Y1.78%

6

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.
Compared to 1 year ago, LZB has more shares outstanding
The number of shares outstanding for LZB has been reduced compared to 5 years ago.
The debt/assets ratio for LZB has been reduced compared to a year ago.

2.2 Solvency

LZB has an Altman-Z score of 2.93. This is not the best score and indicates that LZB is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.93, LZB is in line with its industry, outperforming 52.24% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.93
ROIC/WACC0.71
WACC10.88%

2.3 Liquidity

LZB has a Current Ratio of 1.93. 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 1.93, LZB is not doing good in the industry: 64.18% of the companies in the same industry are doing better.
LZB has a Quick Ratio of 1.30. This is a normal value and indicates that LZB is financially healthy and should not expect problems in meeting its short term obligations.
LZB has a better Quick ratio (1.30) than 64.18% of its industry peers.
Industry RankSector Rank
Current Ratio 1.93
Quick Ratio 1.3

3

3. Growth

3.1 Past

LZB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.35%.
LZB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.47% yearly.
The Revenue for LZB has decreased by -16.90% in the past year. This is quite bad
Measured over the past years, LZB shows a quite strong growth in Revenue. The Revenue has been growing by 8.20% on average per year.
EPS 1Y (TTM)-23.35%
EPS 3Y21.54%
EPS 5Y15.47%
EPS growth Q2Q-26.37%
Revenue 1Y (TTM)-16.9%
Revenue growth 3Y11.3%
Revenue growth 5Y8.2%
Revenue growth Q2Q-12.62%

3.2 Future

The Earnings Per Share is expected to decrease by -1.24% on average over the next years.
The Revenue is expected to grow by 0.15% on average over the next years.
EPS Next Y-28.31%
EPS Next 2Y-11.7%
EPS Next 3Y-5.11%
EPS Next 5Y-1.24%
Revenue Next Year-13.31%
Revenue Next 2Y-5.53%
Revenue Next 3Y-2.33%
Revenue Next 5Y0.15%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.

5

4. Valuation

4.1 Price/Earnings Ratio

LZB is valuated reasonably with a Price/Earnings ratio of 11.15.
LZB's Price/Earnings ratio is a bit cheaper when compared to the industry. LZB is cheaper than 62.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of LZB to the average of the S&P500 Index (24.95), we can say LZB is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.19, the valuation of LZB can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LZB is valued a bit cheaper than 64.18% of the companies in the same industry.
LZB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.40, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.15
Fwd PE 11.19

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LZB is valued cheaply inside the industry as 92.54% of the companies are valued more expensively.
LZB's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 10.72
EV/EBITDA 5.37

4.3 Compensation for Growth

The decent profitability rating of LZB may justify a higher PE ratio.
A cheap valuation may be justified as LZB's earnings are expected to decrease with -5.11% in the coming years.
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y-11.7%
EPS Next 3Y-5.11%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.43%, LZB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.34, LZB pays a better dividend. On top of this LZB pays more dividend than 86.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, LZB has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.43%

5.2 History

The dividend of LZB is nicely growing with an annual growth rate of 8.43%!
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)8.43%
Div Incr Years3
Div Non Decr Years3

5.3 Sustainability

LZB pays out 27.24% of its income as dividend. This is a sustainable payout ratio.
DP27.24%
EPS Next 2Y-11.7%
EPS Next 3Y-5.11%

LA-Z-BOY INC

NYSE:LZB (4/22/2024, 3:15:00 PM)

After market: 33.68 0 (0%)

33.68

+0.15 (+0.45%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.44B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.43%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 11.15
Fwd PE 11.19
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.72
Profitability
Industry RankSector Rank
ROA 6.14%
ROE 12.04%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.53%
PM (TTM) 5.73%
GM 43.88%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.93
Quick Ratio 1.3
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.35%
EPS 3Y21.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y-28.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.9%
Revenue growth 3Y11.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y