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 decent growth rate and is not valued too expensively.
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.
In the past 5 years LZB has always been profitable.
LZB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 5.18%, LZB perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
LZB has a Return On Equity (9.75%) which is in line with its industry peers.
LZB has a Return On Invested Capital of 7.49%. This is comparable to the rest of the industry: LZB outperforms 53.97% 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 10.40%.
| 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
The Profit Margin of LZB (4.72%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LZB has remained more or less at the same level.
Looking at the Operating Margin, with a value of 7.42%, LZB is in line with its industry, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Operating Margin of LZB has declined.
LZB has a Gross Margin of 43.92%. This is amongst the best in the industry. LZB outperforms 80.95% 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
LZB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LZB has less shares outstanding
LZB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LZB has a worse debt to assets ratio.
2.2 Solvency
LZB has an Altman-Z score of 3.03. This indicates that LZB is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.03, LZB perfoms like the industry average, outperforming 53.97% 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 | 3.03 |
ROIC/WACC0.84
WACC8.92%
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 1.31 indicates that LZB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.31, LZB is in the better half of 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
LZB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.68%.
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.
The Revenue has been growing slightly by 3.04% in the past year.
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)-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
The Earnings Per Share is expected to grow by 9.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y10.65%
EPS Next 2Y9.79%
EPS Next 3Y9.51%
EPS Next 5Y9.69%
Revenue Next Year3.31%
Revenue Next 2Y3.37%
Revenue Next 3Y3.17%
Revenue Next 5Y3.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.35 indicates a correct valuation of LZB.
LZB's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LZB to the average of the S&P500 Index (26.51), we can say LZB is valued rather cheaply.
The Price/Forward Earnings ratio is 11.16, which indicates a very decent valuation of LZB.
Based on the Price/Forward Earnings ratio, LZB is valued a bit cheaper than the industry average as 60.32% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LZB to the average of the S&P500 Index (34.09), we can say LZB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZB is valued cheaper than 80.95% of the companies in the same industry.
84.13% 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 | 13.19 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.16
PEG (5Y)1.93
EPS Next 2Y9.79%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, LZB has a reasonable but not impressive dividend return.
LZB's Dividend Yield is rather good when compared to the industry average which is at 3.34. LZB pays more dividend than 84.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, LZB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
On average, the dividend of LZB grows each year by 9.12%, which is quite nice.
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 35.11% of its income as dividend. This is a sustainable payout ratio.
The dividend of LZB is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP35.11%
EPS Next 2Y9.79%
EPS Next 3Y9.51%
36.19
-0.29 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.26%
Inst Owner Change-0.38%
Ins Owners2.55%
Ins Owner Change14.79%
Market Cap1.49B
Analysts74.29
Price Target46.92 (29.65%)
Short Float %6.95%
Short Ratio6.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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 | 12.35 | ||
| Fwd PE | 11.16 | ||
| P/S | 0.71 | ||
| P/FCF | 13.19 | ||
| P/OCF | 7.96 | ||
| P/B | 1.46 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 5.69 |
EPS(TTM)2.93
EY8.1%
EPS(NY)3.24
Fwd EY8.96%
FCF(TTM)2.74
FCFY7.58%
OCF(TTM)4.55
OCFY12.57%
SpS51.23
BVpS24.79
TBVpS18.55
PEG (NY)1.16
PEG (5Y)1.93
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 | 3.03 |
F-Score8
WACC8.92%
ROIC/WACC0.84
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 3Y9.51%
EPS Next 5Y9.69%
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 3Y3.17%
Revenue Next 5Y3.21%
EBIT growth 1Y3.75%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year39.16%
EBIT Next 3Y19.05%
EBIT Next 5Y15.96%
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%