LA-Z-BOY INC (LZB) Stock Fundamental Analysis
NYSE:LZB - New York Stock Exchange, Inc. - US5053361078 - Common Stock - Currency: USD
Taking everything into account, LZB scores 5 out of 10 in our fundamental rating. LZB was compared to 64 industry peers in the Household Durables industry. LZB is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
LZB had positive earnings in each of the past 5 years.
Each year in the past 5 years LZB had a positive operating cash flow.
1.2 Ratios
LZB has a Return On Assets (5.18%) which is comparable to the rest of the industry.
LZB's Return On Equity of 9.75% is in line compared to the rest of the industry. LZB outperforms 51.56% of its industry peers.
LZB has a Return On Invested Capital of 7.49%. This is comparable to the rest of the industry: LZB outperforms 53.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LZB is in line with the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 9.75% | ||
| ROIC | 7.49% |
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
With a Profit Margin value of 4.72%, LZB perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
LZB's Profit Margin has been stable in the last couple of years.
LZB has a Operating Margin (7.42%) which is comparable to the rest of the industry.
LZB's Operating Margin has declined in the last couple of years.
LZB has a Gross Margin of 43.92%. This is amongst the best in the industry. LZB outperforms 81.25% 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 | 7.42% | ||
| PM (TTM) | 4.72% | ||
| GM | 43.92% |
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
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 less shares outstanding
LZB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LZB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.07 indicates that LZB is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.07, LZB perfoms like the industry average, outperforming 56.25% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.74
WACC10.09%
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 worse Current ratio (1.91) than 68.75% of its industry peers.
LZB has a Quick Ratio of 1.31. 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 1.31, LZB is doing good in the industry, outperforming 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
LZB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.68%.
The Earnings Per Share has been growing slightly by 6.39% on average over the past years.
The Revenue has been growing slightly by 3.04% in the past 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)-1.68%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%-3.16%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%3.13%
3.2 Future
LZB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.69% yearly.
LZB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.21% yearly.
EPS Next Y12.83%
EPS Next 2Y11.24%
EPS Next 3Y9.51%
EPS Next 5Y9.69%
Revenue Next Year3.45%
Revenue Next 2Y3.66%
Revenue Next 3Y3.17%
Revenue Next 5Y3.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 correctly with a Price/Earnings ratio of 12.96.
LZB's Price/Earnings ratio is in line with the industry average.
LZB is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.48, which indicates a very decent valuation of LZB.
The rest of the industry has a similar Price/Forward Earnings ratio as LZB.
LZB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZB is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LZB indicates a somewhat cheap valuation: LZB is cheaper than 76.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.87 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.01
PEG (5Y)2.03
EPS Next 2Y11.24%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, LZB pays a better dividend. On top of this LZB pays more dividend than 82.81% of the companies listed in the same industry.
LZB's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
On average, the dividend of LZB grows each year by 9.12%, which is quite nice.
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)9.12%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
LZB pays out 35.11% of its income as dividend. This is a sustainable payout ratio.
LZB's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP35.11%
EPS Next 2Y11.24%
EPS Next 3Y9.51%
37.96
+0.42 (+1.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners104.68%
Inst Owner Change6.88%
Ins Owners0.73%
Ins Owner Change0.23%
Market Cap1.57B
Analysts74.29
Price Target46.92 (23.6%)
Short Float %6.52%
Short Ratio6.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend0.84
Dividend Growth(5Y)9.12%
DP35.11%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.76%
Min EPS beat(2)-2.05%
Max EPS beat(2)-1.47%
EPS beat(4)2
Avg EPS beat(4)2.16%
Min EPS beat(4)-2.05%
Max EPS beat(4)9.27%
EPS beat(8)5
Avg EPS beat(8)8.06%
EPS beat(12)9
Avg EPS beat(12)16.12%
EPS beat(16)11
Avg EPS beat(16)12.04%
Revenue beat(2)2
Avg Revenue beat(2)0.7%
Min Revenue beat(2)0.01%
Max Revenue beat(2)1.39%
Revenue beat(4)4
Avg Revenue beat(4)1.41%
Min Revenue beat(4)0.01%
Max Revenue beat(4)2.28%
Revenue beat(8)7
Avg Revenue beat(8)0.97%
Revenue beat(12)11
Avg Revenue beat(12)2.16%
Revenue beat(16)14
Avg Revenue beat(16)2.48%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
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%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.48 | ||
| P/S | 0.74 | ||
| P/FCF | 13.87 | ||
| P/OCF | 8.37 | ||
| P/B | 1.54 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)2.93
EY7.72%
EPS(NY)3.31
Fwd EY8.71%
FCF(TTM)2.74
FCFY7.21%
OCF(TTM)4.54
OCFY11.95%
SpS51.08
BVpS24.72
TBVpS18.5
PEG (NY)1.01
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 9.75% | ||
| ROCE | 10.42% | ||
| ROIC | 7.49% | ||
| ROICexc | 9.61% | ||
| ROICexgc | 12.31% | ||
| OM | 7.42% | ||
| PM (TTM) | 4.72% | ||
| GM | 43.92% | ||
| FCFM | 5.36% |
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%
ROICexcg growth 3Y-14.13%
ROICexcg 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 Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 159.17% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 391.05 | ||
| Cash Conversion | 92.21% | ||
| Profit Quality | 113.5% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.07 |
F-Score8
WACC10.09%
ROIC/WACC0.74
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)-1.68%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%-3.16%
EPS Next Y12.83%
EPS Next 2Y11.24%
EPS Next 3Y9.51%
EPS Next 5Y9.69%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%3.13%
Revenue Next Year3.45%
Revenue Next 2Y3.66%
Revenue Next 3Y3.17%
Revenue Next 5Y3.21%
EBIT growth 1Y3.75%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year40.34%
EBIT Next 3Y19.05%
EBIT Next 5Y15.96%
FCF growth 1Y8.05%
FCF growth 3Y261.09%
FCF growth 5Y-0.9%
OCF growth 1Y18.43%
OCF growth 3Y33.34%
OCF growth 5Y2.66%