LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - NYSE:LZB - US5053361078 - Common Stock
34.31 USD
+0.54 (+1.6%)
We assign a fundamental rating of 5 out of 10 to LZB. LZB was compared to 63 industry peers in the Household Durables industry. LZB has only an average score on both its financial health and profitability. LZB is valued correctly, 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.
In the past 5 years LZB has always been profitable.
Each year in the past 5 years LZB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LZB (4.76%) is comparable to the rest of the industry.
LZB has a Return On Equity (9.01%) which is in line with its industry peers.
LZB's Return On Invested Capital of 6.96% is in line compared to the rest of the industry. LZB outperforms 49.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LZB is in line with the industry average of 10.51%.
| 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
With a Profit Margin value of 4.35%, LZB perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
LZB's Profit Margin has been stable in the last couple of years.
LZB's Operating Margin of 6.93% is in line compared to the rest of the industry. LZB outperforms 49.21% of its industry peers.
In the last couple of years the Operating Margin of LZB has declined.
The Gross Margin of LZB (43.79%) is better than 82.54% of its industry peers.
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
LZB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.
2.2 Solvency
LZB has an Altman-Z score of 2.92. 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.
With a Altman-Z score value of 2.92, LZB perfoms like the industry average, outperforming 52.38% 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 | 2.92 |
ROIC/WACC0.78
WACC8.94%
2.3 Liquidity
LZB has a Current Ratio of 1.91. 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 worse Current ratio (1.91) than 65.08% of its industry peers.
A Quick Ratio of 1.30 indicates that LZB should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.30, LZB is doing good in the industry, outperforming 68.25% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 6.39% on average over the past years.
LZB shows a small growth in Revenue. In the last year, the Revenue has grown by 2.18%.
The Revenue has been growing slightly by 4.36% on average over the past years.
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
Based on estimates for the next years, LZB will show a small growth in Earnings Per Share. The EPS will grow by 4.35% on average per year.
LZB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.91% yearly.
EPS Next Y-12.56%
EPS Next 2Y1.97%
EPS Next 3Y1.68%
EPS Next 5Y4.35%
Revenue Next Year1.75%
Revenue Next 2Y2.89%
Revenue Next 3Y3.17%
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
With a Price/Earnings ratio of 12.34, LZB is valued correctly.
LZB's Price/Earnings is on the same level as the industry average.
LZB is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.26, the valuation of LZB can be described as very reasonable.
68.25% of the companies in the same industry are more expensive than LZB, based on the Price/Forward Earnings ratio.
LZB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZB is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LZB is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.02 | ||
| EV/EBITDA | 5.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.93
EPS Next 2Y1.97%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.03, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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
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%
NYSE:LZB (9/18/2025, 12:48:50 PM)
34.31
+0.54 (+1.6%)
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 Change16.34%
Market Cap1.41B
Analysts74.29
Price Target41.82 (21.89%)
Short Float %6.36%
Short Ratio4.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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)-10.87%
PT rev (3m)-10.87%
EPS NQ rev (1m)-23.53%
EPS NQ rev (3m)-27.34%
EPS NY rev (1m)-20.98%
EPS NY rev (3m)-22.5%
Revenue NQ rev (1m)-2.26%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)-1.51%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 11.26 | ||
| P/S | 0.67 | ||
| P/FCF | 15.02 | ||
| P/OCF | 8.26 | ||
| P/B | 1.39 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 5.56 |
EPS(TTM)2.78
EY8.1%
EPS(NY)3.05
Fwd EY8.88%
FCF(TTM)2.28
FCFY6.66%
OCF(TTM)4.16
OCFY12.11%
SpS51.1
BVpS24.66
TBVpS18.43
PEG (NY)N/A
PEG (5Y)1.93
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%
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 Turnover1.09
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 | 2.92 |
F-Score8
WACC8.94%
ROIC/WACC0.78
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-12.56%
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 3Y3.17%
Revenue Next 5Y2.91%
EBIT growth 1Y-1.75%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year39.16%
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%