LA-Z-BOY INC (LZB) Stock Fundamental Analysis
NYSE:LZB - New York Stock Exchange, Inc. - US5053361078 - Common Stock - Currency: USD
Overall LZB gets a fundamental rating of 6 out of 10. We evaluated LZB against 64 industry peers in the Household Durables industry. LZB has an excellent financial health rating, but there are some minor concerns on its profitability. 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 (6.33%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 12.14%, LZB is in line with its industry, outperforming 57.81% of the companies in the same industry.
The Return On Invested Capital of LZB (7.75%) 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 10.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 12.14% | ||
| ROIC | 7.75% |
ROA(3y)7.42%
ROA(5y)6.72%
ROE(3y)15.58%
ROE(5y)14.31%
ROIC(3y)10.4%
ROIC(5y)9.85%
1.3 Margins
LZB has a Profit Margin of 5.92%. This is comparable to the rest of the industry: LZB outperforms 54.69% of its industry peers.
In the last couple of years the Profit Margin of LZB has grown nicely.
The Operating Margin of LZB (7.48%) is comparable to the rest of the industry.
LZB's Operating Margin has been stable in the last couple of years.
The Gross Margin of LZB (43.76%) is better than 81.25% of its industry peers.
LZB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.48% | ||
| PM (TTM) | 5.92% | ||
| GM | 43.76% |
OM growth 3Y-2.23%
OM growth 5Y-0.17%
PM growth 3Y-0.79%
PM growth 5Y8.89%
GM growth 3Y0.3%
GM growth 5Y1.36%
2. Health
2.1 Basic Checks
LZB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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
An Altman-Z score of 3.10 indicates that LZB is not in any danger for bankruptcy at the moment.
LZB has a Altman-Z score (3.10) which is in line with 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 | 3.1 |
ROIC/WACC0.85
WACC9.11%
2.3 Liquidity
LZB has a Current Ratio of 1.85. 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 Current ratio value of 1.85, LZB is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
LZB has a Quick Ratio of 1.21. This is a normal value and indicates that LZB is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of LZB (1.21) is better than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for LZB have decreased by -1.99% in the last year.
LZB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.19% yearly.
Looking at the last year, LZB shows a small growth in Revenue. The Revenue has grown by 1.80% in the last year.
LZB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.24% yearly.
EPS 1Y (TTM)-1.99%
EPS 3Y4.52%
EPS 5Y8.19%
EPS Q2Q%1.49%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%4.27%
3.2 Future
The Earnings Per Share is expected to grow by 7.11% on average over the next years.
The Revenue is expected to grow by 3.40% on average over the next years.
EPS Next Y-0.13%
EPS Next 2Y5.33%
EPS Next 3Y6.76%
EPS Next 5Y7.11%
Revenue Next Year4.29%
Revenue Next 2Y3.89%
Revenue Next 3Y3.9%
Revenue Next 5Y3.4%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.87, which indicates a correct valuation of LZB.
LZB's Price/Earnings is on the same level as the industry average.
LZB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.43.
A Price/Forward Earnings ratio of 12.42 indicates a correct valuation of LZB.
The rest of the industry has a similar Price/Forward Earnings ratio as LZB.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, LZB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
LZB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LZB is cheaper than 64.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LZB is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.28 | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
LZB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.69
EPS Next 2Y5.33%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.09%, LZB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.61, LZB pays a bit more dividend than its industry peers.
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 | 2.09% |
5.2 History
The dividend of LZB is nicely growing with an annual growth rate of 8.74%!
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)8.74%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
27.72% of the earnings are spent on dividend by LZB. This is a low number and sustainable payout ratio.
LZB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.72%
EPS Next 2Y5.33%
EPS Next 3Y6.76%
41.06
-0.47 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners99.98%
Inst Owner Change6.88%
Ins Owners0.73%
Ins Owner Change0.23%
Market Cap1.70B
Analysts74.29
Price Target46.92 (14.27%)
Short Float %5.79%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend0.76
Dividend Growth(5Y)8.74%
DP27.72%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.9%
Min EPS beat(2)-1.47%
Max EPS beat(2)9.27%
EPS beat(4)3
Avg EPS beat(4)11.42%
Min EPS beat(4)-1.47%
Max EPS beat(4)35.01%
EPS beat(8)6
Avg EPS beat(8)12.83%
EPS beat(12)10
Avg EPS beat(12)17.55%
EPS beat(16)12
Avg EPS beat(16)13.16%
Revenue beat(2)2
Avg Revenue beat(2)0.98%
Min Revenue beat(2)0.01%
Max Revenue beat(2)1.95%
Revenue beat(4)4
Avg Revenue beat(4)2.59%
Min Revenue beat(4)0.01%
Max Revenue beat(4)6.12%
Revenue beat(8)7
Avg Revenue beat(8)1.33%
Revenue beat(12)11
Avg Revenue beat(12)2.21%
Revenue beat(16)14
Avg Revenue beat(16)2.59%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.36%
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)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.42 | ||
| P/S | 0.81 | ||
| P/FCF | 15.28 | ||
| P/OCF | 9.52 | ||
| P/B | 1.66 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 6.86 |
EPS(TTM)2.96
EY7.21%
EPS(NY)3.31
Fwd EY8.05%
FCF(TTM)2.69
FCFY6.55%
OCF(TTM)4.31
OCFY10.5%
SpS50.66
BVpS24.73
TBVpS18.14
PEG (NY)N/A
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 12.14% | ||
| ROCE | 10.4% | ||
| ROIC | 7.75% | ||
| ROICexc | 9.83% | ||
| ROICexgc | 12.76% | ||
| OM | 7.48% | ||
| PM (TTM) | 5.92% | ||
| GM | 43.76% | ||
| FCFM | 5.31% |
ROA(3y)7.42%
ROA(5y)6.72%
ROE(3y)15.58%
ROE(5y)14.31%
ROIC(3y)10.4%
ROIC(5y)9.85%
ROICexc(3y)13.54%
ROICexc(5y)13.27%
ROICexgc(3y)17.64%
ROICexgc(5y)17.41%
ROCE(3y)13.96%
ROCE(5y)13.39%
ROICexcg growth 3Y-10.85%
ROICexcg growth 5Y-9.43%
ROICexc growth 3Y-9.31%
ROICexc growth 5Y-7.14%
OM growth 3Y-2.23%
OM growth 5Y-0.17%
PM growth 3Y-0.79%
PM growth 5Y8.89%
GM growth 3Y0.3%
GM growth 5Y1.36%
F-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 142.43% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.5% | ||
| Profit Quality | 89.55% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 3.1 |
F-Score6
WACC9.11%
ROIC/WACC0.85
Cap/Depr(3y)157.97%
Cap/Depr(5y)147.3%
Cap/Sales(3y)2.93%
Cap/Sales(5y)2.74%
Profit Quality(3y)59.13%
Profit Quality(5y)117.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.99%
EPS 3Y4.52%
EPS 5Y8.19%
EPS Q2Q%1.49%
EPS Next Y-0.13%
EPS Next 2Y5.33%
EPS Next 3Y6.76%
EPS Next 5Y7.11%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%4.27%
Revenue Next Year4.29%
Revenue Next 2Y3.89%
Revenue Next 3Y3.9%
Revenue Next 5Y3.4%
EBIT growth 1Y1.06%
EBIT growth 3Y3.33%
EBIT growth 5Y3.06%
EBIT Next Year42.91%
EBIT Next 3Y19.8%
EBIT Next 5Y14.79%
FCF growth 1Y29.81%
FCF growth 3Y-27.28%
FCF growth 5Y0.44%
OCF growth 1Y10.65%
OCF growth 3Y-20.09%
OCF growth 5Y0.97%