LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - NYSE:LZB - US5053361078 - Common Stock
32.2 USD
+0.44 (+1.39%)
32.2 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LZB. LZB was compared to 63 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 is valued correctly, but it does not seem to be growing.
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
With a Return On Assets value of 4.76%, LZB perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
LZB has a Return On Equity (9.01%) which is comparable to the rest of the industry.
LZB has a Return On Invested Capital (6.96%) which 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 10.32%.
| 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
LZB's Profit Margin of 4.35% is in line compared to the rest of the industry. LZB outperforms 50.79% of its industry peers.
LZB's Profit Margin has been stable in the last couple of years.
LZB has a Operating Margin (6.93%) which is in line with its industry peers.
In the last couple of years the Operating Margin of LZB has declined.
LZB has a better Gross Margin (43.79%) 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.
The number of shares outstanding for LZB has been reduced compared to 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 2.87. 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.
LZB has a Altman-Z score of 2.87. This is comparable to the rest of the industry: LZB outperforms 49.21% 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 | 2.87 |
ROIC/WACC0.77
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.91 indicates that LZB should not have too much problems paying its short term obligations.
LZB's Current ratio of 1.91 is on the low side compared to the rest of the industry. LZB is outperformed by 68.25% 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
LZB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.71%.
Measured over the past 5 years, LZB shows a small growth in Earnings Per Share. The EPS has been growing by 6.39% on average per year.
LZB shows a small growth in Revenue. In the last year, the Revenue has grown by 2.18%.
Measured over the past years, LZB shows a small growth in Revenue. The Revenue has been growing by 4.36% on average per year.
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
LZB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.35% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 11.58.
Compared to the rest of the industry, the Price/Earnings ratio of LZB indicates a somewhat cheap valuation: LZB is cheaper than 60.32% of the companies listed in the same industry.
LZB is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.57, which indicates a very decent valuation of LZB.
65.08% 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 22.85, LZB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZB is valued cheaply inside the industry as 92.06% of the companies are valued more expensively.
LZB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LZB is cheaper than 73.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.1 | ||
| EV/EBITDA | 5.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.81
EPS Next 2Y1.97%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.72%.
LZB's Dividend Yield is rather good when compared to the industry average which is at 2.93. LZB pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, LZB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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
38.86% of the earnings are spent on dividend by LZB. This is a low number and 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%
32.2
+0.44 (+1.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.59%
Inst Owner Change-0.01%
Ins Owners2.61%
Ins Owner Change16.34%
Market Cap1.33B
Analysts74.29
Price Target41.82 (29.88%)
Short Float %5.91%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)-23.85%
EPS NY rev (1m)8.15%
EPS NY rev (3m)-14.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 10.57 | ||
| P/S | 0.63 | ||
| P/FCF | 14.1 | ||
| P/OCF | 7.75 | ||
| P/B | 1.31 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 5.13 |
EPS(TTM)2.78
EY8.63%
EPS(NY)3.05
Fwd EY9.46%
FCF(TTM)2.28
FCFY7.09%
OCF(TTM)4.16
OCFY12.91%
SpS51.1
BVpS24.66
TBVpS18.43
PEG (NY)N/A
PEG (5Y)1.81
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 | 2.87 |
F-Score8
WACC9.06%
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%