LA-Z-BOY INC (LZB)
US5053361078 - Common Stock
We assign a fundamental rating of 6 out of 10 to LZB. LZB was compared to 66 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year LZB was profitable.
LZB had a positive operating cash flow in the past year.
Each year in the past 5 years LZB has 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 6.41%, LZB perfoms like the industry average, outperforming 55.38% of the companies in the same industry.
LZB has a Return On Equity of 12.23%. This is comparable to the rest of the industry: LZB outperforms 58.46% of its industry peers.
With a Return On Invested Capital value of 7.61%, LZB perfoms like the industry average, outperforming 55.38% of the companies in the same industry.
LZB had an Average Return On Invested Capital over the past 3 years of 10.40%. This is in line with the industry average of 10.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 12.23% | ||
| ROIC | 7.61% |
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 (5.99%) which is in line with its industry peers.
LZB's Profit Margin has improved in the last couple of years.
LZB has a Operating Margin of 7.37%. This is comparable to the rest of the industry: LZB outperforms 52.31% of its industry peers.
LZB's Operating Margin has been stable in the last couple of years.
LZB has a Gross Margin of 43.07%. This is amongst the best in the industry. LZB outperforms 81.54% 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 | 7.37% | ||
| PM (TTM) | 5.99% | ||
| GM | 43.07% |
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.
The number of shares outstanding for LZB has been reduced compared to 5 years ago.
LZB has a worse debt/assets ratio than last year.
2.2 Solvency
LZB has an Altman-Z score of 3.19. This indicates that LZB is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.19, LZB perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
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 | 3.19 |
ROIC/WACC0.74
WACC10.23%
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.
With a Current ratio value of 1.91, LZB is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
LZB has a Quick Ratio of 1.31. This is a normal value and indicates that LZB is financially healthy and should not expect problems in meeting 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 69.23% 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 strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.80%.
The Earnings Per Share has been growing by 8.19% on average over the past years. This is quite good.
Looking at the last year, LZB shows a very negative growth in Revenue. The Revenue has decreased by -12.87% in the last year.
Measured over the past years, LZB shows a small growth in Revenue. The Revenue has been growing by 3.24% on average per year.
EPS 1Y (TTM)-22.8%
EPS 3Y4.52%
EPS 5Y8.19%
EPS Q2Q%-4.04%
Revenue 1Y (TTM)-12.87%
Revenue growth 3Y5.68%
Revenue growth 5Y3.24%
Sales Q2Q%-1.38%
3.2 Future
LZB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.06% yearly.
LZB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
EPS Next Y-0.58%
EPS Next 2Y5.19%
EPS Next 3Y2.64%
EPS Next 5Y4.06%
Revenue Next Year2.56%
Revenue Next 2Y3.46%
Revenue Next 3Y2.95%
Revenue Next 5Y2.92%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.61 indicates a correct valuation of LZB.
The rest of the industry has a similar Price/Earnings ratio as LZB.
When comparing the Price/Earnings ratio of LZB to the average of the S&P500 Index (24.41), we can say LZB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.70, the valuation of LZB can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LZB is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LZB to the average of the S&P500 Index (20.59), we can say LZB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 14.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZB is valued cheaply inside the industry as 84.62% 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 61.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.47 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
The decent profitability rating of LZB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.78
EPS Next 2Y5.19%
EPS Next 3Y2.64%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 1.90%.
Compared to an average industry Dividend Yield of 2.49, LZB pays a better dividend. On top of this LZB pays more dividend than 87.69% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, LZB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
On average, the dividend of LZB grows each year by 8.74%, 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)8.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
LZB pays out 26.63% of its income as dividend. This is a sustainable payout ratio.
LZB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.63%
EPS Next 2Y5.19%
EPS Next 3Y2.64%
LA-Z-BOY INC
NYSE:LZB (7/26/2024, 7:04:00 PM)
After market: 43.55 0 (0%)43.55
+1.13 (+2.66%)
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 Cap1.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 14.7 | ||
| 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)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 12.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.37% | ||
| PM (TTM) | 5.99% | ||
| GM | 43.07% | ||
| 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 | 1.91 | ||
| Quick Ratio | 1.31 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-22.8%
EPS 3Y4.52%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.87%
Revenue growth 3Y5.68%
Revenue growth 5Y
Sales 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