LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - NYSE:LZB - US5053361078 - Common Stock
31.41 USD
+0.24 (+0.77%)
31.41 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LZB. LZB was compared to 61 industry peers in the Household Durables industry. LZB has an average financial health and profitability rating. LZB has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LZB had positive earnings in the past year.
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.
1.2 Ratios
The Return On Assets of LZB (4.76%) is comparable to the rest of the industry.
The Return On Equity of LZB (9.01%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.96%, LZB perfoms like the industry average, outperforming 50.82% of the companies in the same industry.
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 10.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 9.01% | ||
| ROIC | 6.96% |
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
Looking at the Profit Margin, with a value of 4.35%, LZB is in line with its industry, outperforming 50.82% of the companies in the same industry.
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 6.93%. This is comparable to the rest of the industry: LZB outperforms 47.54% of its industry peers.
In the last couple of years the Operating Margin of LZB has declined.
Looking at the Gross Margin, with a value of 43.79%, LZB belongs to the top of the industry, outperforming 83.61% of the companies in the same industry.
LZB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.93% | ||
| PM (TTM) | 4.35% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LZB is destroying 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
An Altman-Z score of 2.86 indicates that LZB is not a great score, but indicates only limited risk for bankruptcy at the moment.
LZB has a Altman-Z score (2.86) which is in line with 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 | 2.86 |
ROIC/WACC0.77
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.91 indicates that LZB should not have too much problems paying its short term obligations.
LZB has a Current ratio of 1.91. This is in the lower half of the industry: LZB underperforms 65.57% of its industry peers.
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's Quick ratio of 1.30 is fine compared to the rest of the industry. LZB outperforms 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for LZB have decreased by -6.71% in the last year.
LZB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.39% yearly.
Looking at the last year, LZB shows a small growth in Revenue. The Revenue has grown by 2.18% in the last 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)-6.71%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%-24.19%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%-0.67%
3.2 Future
The Earnings Per Share is expected to grow by 4.35% on average over the next years.
The Revenue is expected to grow by 2.91% on average over the next years.
EPS Next Y-5.43%
EPS Next 2Y1.97%
EPS Next 3Y1.68%
EPS Next 5Y4.35%
Revenue Next Year1.75%
Revenue Next 2Y2.89%
Revenue Next 3Y2.88%
Revenue Next 5Y2.91%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LZB is valuated reasonably with a Price/Earnings ratio of 11.30.
Compared to the rest of the industry, the Price/Earnings ratio of LZB is on the same level as its industry peers.
When comparing the Price/Earnings ratio of LZB to the average of the S&P500 Index (26.06), we can say LZB is valued rather cheaply.
LZB is valuated reasonably with a Price/Forward Earnings ratio of 10.31.
67.21% of the companies in the same industry are more expensive than LZB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, LZB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZB is valued cheaply inside the industry as 85.25% of the companies are valued more expensively.
67.21% of the companies in the same industry are more expensive than LZB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.75 | ||
| EV/EBITDA | 5.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y1.97%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.82%, LZB has a reasonable but not impressive dividend return.
LZB's Dividend Yield is rather good when compared to the industry average which is at 3.32. LZB pays more dividend than 85.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, LZB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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
LZB pays out 38.86% of its income as dividend. This is a sustainable payout ratio.
The dividend of LZB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.86%
EPS Next 2Y1.97%
EPS Next 3Y1.68%
31.41
+0.24 (+0.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.59%
Inst Owner Change2.95%
Ins Owners2.61%
Ins Owner Change16.34%
Market Cap1.29B
Revenue(TTM)2.11B
Net Income(TTM)91.60M
Analysts74.29
Price Target41.82 (33.14%)
Short Float %5.9%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend0.84
Dividend Growth(5Y)9.12%
DP38.86%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.72%
Min EPS beat(2)-15.39%
Max EPS beat(2)-2.05%
EPS beat(4)1
Avg EPS beat(4)-2.41%
Min EPS beat(4)-15.39%
Max EPS beat(4)9.27%
EPS beat(8)4
Avg EPS beat(8)4.77%
EPS beat(12)8
Avg EPS beat(12)12.02%
EPS beat(16)11
Avg EPS beat(16)11.28%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)1.39%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)1.95%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)10
Avg Revenue beat(12)1.58%
Revenue beat(16)13
Avg Revenue beat(16)1.96%
PT rev (1m)0%
PT rev (3m)-10.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.61 | ||
| P/FCF | 13.75 | ||
| P/OCF | 7.56 | ||
| P/B | 1.27 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 5.06 |
EPS(TTM)2.78
EY8.85%
EPS(NY)3.05
Fwd EY9.7%
FCF(TTM)2.28
FCFY7.27%
OCF(TTM)4.16
OCFY13.23%
SpS51.1
BVpS24.66
TBVpS18.43
PEG (NY)N/A
PEG (5Y)1.77
Graham Number39.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 9.01% | ||
| ROCE | 9.67% | ||
| ROIC | 6.96% | ||
| ROICexc | 8.84% | ||
| ROICexgc | 11.27% | ||
| OM | 6.93% | ||
| PM (TTM) | 4.35% | ||
| GM | 43.79% | ||
| FCFM | 4.47% |
ROA(3y)6.55%
ROA(5y)6.68%
ROE(3y)12.66%
ROE(5y)14.05%
ROIC(3y)8.59%
ROIC(5y)9.19%
ROICexc(3y)11.28%
ROICexc(5y)12.34%
ROICexgc(3y)14.64%
ROICexgc(5y)16.2%
ROCE(3y)11.95%
ROCE(5y)12.79%
ROICexgc growth 3Y-14.13%
ROICexgc growth 5Y-4.21%
ROICexc growth 3Y-13.73%
ROICexc growth 5Y-4.28%
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%
F-Score8
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 168.21% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.24% | ||
| Profit Quality | 102.75% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.86 |
F-Score8
WACC9.07%
ROIC/WACC0.77
Cap/Depr(3y)146.87%
Cap/Depr(5y)149.65%
Cap/Sales(3y)3.02%
Cap/Sales(5y)2.9%
Profit Quality(3y)96.43%
Profit Quality(5y)109.29%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.71%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%-24.19%
EPS Next Y-5.43%
EPS Next 2Y1.97%
EPS Next 3Y1.68%
EPS Next 5Y4.35%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%-0.67%
Revenue Next Year1.75%
Revenue Next 2Y2.89%
Revenue Next 3Y2.88%
Revenue Next 5Y2.91%
EBIT growth 1Y-1.75%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year29.64%
EBIT Next 3Y12.57%
EBIT Next 5Y11.64%
FCF growth 1Y-31.15%
FCF growth 3Y261.09%
FCF growth 5Y-0.9%
OCF growth 1Y-13.51%
OCF growth 3Y33.34%
OCF growth 5Y2.66%
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.
Can you provide the valuation status for LA-Z-BOY INC?
ChartMill assigns a valuation rating of 5 / 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 is the earnings growth outlook for LA-Z-BOY INC?
The Earnings per Share (EPS) of LA-Z-BOY INC (LZB) is expected to decline by -5.43% in the next year.
Can you provide the dividend sustainability for LZB stock?
The dividend rating of LA-Z-BOY INC (LZB) is 6 / 10 and the dividend payout ratio is 38.86%.