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 6 out of 10 in our fundamental rating. LZB was compared to 63 industry peers in the Household Durables industry. While LZB has a great health rating, its profitability is only average at the moment. LZB has a correct valuation and a medium growth rate.
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.
1.2 Ratios
The Return On Assets of LZB (5.18%) is comparable to the rest of the industry.
LZB has a Return On Equity (9.75%) which is in line with its industry peers.
The Return On Invested Capital of LZB (7.49%) 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 10.39%.
| 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
LZB has a Profit Margin (4.72%) which is in line with its industry peers.
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.
The Gross Margin of LZB (43.92%) is better than 82.54% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LZB is destroying value.
LZB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LZB has less shares outstanding
LZB has a worse debt/assets ratio than last year.
2.2 Solvency
LZB has an Altman-Z score of 3.09. This indicates that LZB is financially healthy and has little risk of bankruptcy at the moment.
LZB's Altman-Z score of 3.09 is in line compared to the rest of the industry. LZB outperforms 53.97% of 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.83
WACC8.99%
2.3 Liquidity
A Current Ratio of 1.91 indicates that LZB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.91, LZB is doing worse than 65.08% of the companies in the same industry.
A Quick Ratio of 1.31 indicates that LZB should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.31, LZB is doing good in the industry, outperforming 69.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The earnings per share for LZB have decreased by -1.68% 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 3.04% in the last year.
The Revenue has been growing slightly by 4.36% on average over the past years.
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
Based on estimates for the next years, LZB will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
LZB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.22% yearly.
EPS Next Y10.65%
EPS Next 2Y9.79%
EPS Next 3Y9.13%
EPS Next 5Y9.5%
Revenue Next Year3.31%
Revenue Next 2Y3.37%
Revenue Next 3Y3.28%
Revenue Next 5Y3.22%
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
Based on the Price/Earnings ratio of 13.35, the valuation of LZB can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of LZB is on the same level as its industry peers.
LZB is valuated cheaply when we compare the Price/Earnings ratio to 26.85, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.06, the valuation of LZB can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as LZB.
The average S&P500 Price/Forward Earnings ratio is at 34.98. LZB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LZB indicates a rather cheap valuation: LZB is cheaper than 82.54% of the companies listed in the same industry.
82.54% 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 | 14.25 | ||
| EV/EBITDA | 6.13 |
4.3 Compensation for Growth
LZB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.25
PEG (5Y)2.09
EPS Next 2Y9.79%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.28%.
Compared to an average industry Dividend Yield of 3.23, LZB pays a better dividend. On top of this LZB pays more dividend than 84.13% of the companies listed in the same industry.
LZB's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
The dividend of LZB is nicely growing with an annual growth rate of 9.12%!
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
35.11% of the earnings are spent on dividend by LZB. This is a low number and 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 2Y9.79%
EPS Next 3Y9.13%
39.11
+0.77 (+2.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.26%
Inst Owner Change-2.68%
Ins Owners2.55%
Ins Owner Change14.79%
Market Cap1.61B
Analysts74.29
Price Target46.92 (19.97%)
Short Float %6.96%
Short Ratio5.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)-4.42%
EPS NQ rev (3m)-9.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12.06 | ||
| P/S | 0.76 | ||
| P/FCF | 14.25 | ||
| P/OCF | 8.6 | ||
| P/B | 1.58 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 6.13 |
EPS(TTM)2.93
EY7.49%
EPS(NY)3.24
Fwd EY8.29%
FCF(TTM)2.74
FCFY7.02%
OCF(TTM)4.55
OCFY11.63%
SpS51.23
BVpS24.79
TBVpS18.55
PEG (NY)1.25
PEG (5Y)2.09
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 | 3.09 |
F-Score8
WACC8.99%
ROIC/WACC0.83
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 Y10.65%
EPS Next 2Y9.79%
EPS Next 3Y9.13%
EPS Next 5Y9.5%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%3.13%
Revenue Next Year3.31%
Revenue Next 2Y3.37%
Revenue Next 3Y3.28%
Revenue Next 5Y3.22%
EBIT growth 1Y3.75%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year39.16%
EBIT Next 3Y18.6%
EBIT Next 5Y15.76%
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%