LA-Z-BOY INC (LZB)
US5053361078 - Common Stock
LZB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Household Durables industry. LZB has an average financial health and profitability rating. 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.
In the past year LZB had a positive cash flow from operations.
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
The Return On Assets of LZB (6.14%) is comparable to the rest of the industry.
LZB has a Return On Equity (12.04%) which is comparable to the rest of the industry.
The Return On Invested Capital of LZB (7.75%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LZB is in line with the industry average of 9.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 12.04% | ||
| ROIC | 7.75% |
ROA(3y)7.26%
ROA(5y)6.73%
ROE(3y)16.09%
ROE(5y)13.86%
ROIC(3y)10.68%
ROIC(5y)10.6%
1.3 Margins
LZB's Profit Margin of 5.73% is in line compared to the rest of the industry. LZB outperforms 50.75% of its industry peers.
LZB's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 7.53%, LZB perfoms like the industry average, outperforming 53.73% of the companies in the same industry.
In the last couple of years the Operating Margin of LZB has grown nicely.
LZB's Gross Margin of 43.88% is amongst the best of the industry. LZB outperforms 82.09% of its industry peers.
In the last couple of years the Gross Margin of LZB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.53% | ||
| PM (TTM) | 5.73% | ||
| GM | 43.88% |
OM growth 3Y1.72%
OM growth 5Y1.95%
PM growth 3Y12.19%
PM growth 5Y4.77%
GM growth 3Y0.47%
GM growth 5Y1.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LZB is still creating some value.
LZB has more shares outstanding than it did 1 year ago.
LZB has less shares outstanding than it did 5 years ago.
LZB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.91 indicates that LZB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.91, LZB is in line with its industry, outperforming 52.24% 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 | 2.91 |
ROIC/WACC0.73
WACC10.67%
2.3 Liquidity
LZB has a Current Ratio of 1.93. 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 Current ratio of 1.93 is on the low side compared to the rest of the industry. LZB is outperformed by 62.69% 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 65.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
LZB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.35%.
Measured over the past years, LZB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.47% on average per year.
LZB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.90%.
LZB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.20% yearly.
EPS 1Y (TTM)-23.35%
EPS 3Y21.54%
EPS 5Y15.47%
EPS growth Q2Q-26.37%
Revenue 1Y (TTM)-16.9%
Revenue growth 3Y11.3%
Revenue growth 5Y8.2%
Revenue growth Q2Q-12.62%
3.2 Future
Based on estimates for the next years, LZB will show a decrease in Earnings Per Share. The EPS will decrease by -1.24% on average per year.
Based on estimates for the next years, LZB will show a small growth in Revenue. The Revenue will grow by 0.15% on average per year.
EPS Next Y-28.31%
EPS Next 2Y-11.7%
EPS Next 3Y-5.11%
EPS Next 5Y-1.24%
Revenue Next Year-13.31%
Revenue Next 2Y-5.53%
Revenue Next 3Y-2.33%
Revenue Next 5Y0.15%
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
A Price/Earnings ratio of 10.92 indicates a reasonable valuation of LZB.
64.18% of the companies in the same industry are more expensive than LZB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.80, LZB is valued rather cheaply.
A Price/Forward Earnings ratio of 10.96 indicates a reasonable valuation of LZB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LZB indicates a somewhat cheap valuation: LZB is cheaper than 64.18% of the companies listed in the same industry.
LZB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
LZB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LZB is cheaper than 95.52% 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 61.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.49 | ||
| EV/EBITDA | 5.25 |
4.3 Compensation for Growth
LZB has a very decent profitability rating, which may justify a higher PE ratio.
LZB's earnings are expected to decrease with -5.11% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.71
EPS Next 2Y-11.7%
EPS Next 3Y-5.11%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.26, LZB pays a better dividend. On top of this LZB pays more dividend than 86.57% of the companies listed in the same industry.
LZB's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
The dividend of LZB is nicely growing with an annual growth rate of 8.43%!
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)8.43%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
LZB pays out 27.24% of its income as dividend. This is a sustainable payout ratio.
DP27.24%
EPS Next 2Y-11.7%
EPS Next 3Y-5.11%
LA-Z-BOY INC
NYSE:LZB (4/18/2024, 7:06:32 PM)
After market: 32.98 0 (0%)32.98
+0.27 (+0.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 10.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 12.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.53% | ||
| PM (TTM) | 5.73% | ||
| GM | 43.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.35%
EPS 3Y21.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y-28.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.9%
Revenue growth 3Y11.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y