LA-Z-BOY INC (LZB) Stock Fundamental Analysis
NYSE:LZB - New York Stock Exchange, Inc. - US5053361078 - Common Stock - Currency: USD
LZB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. LZB is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LZB is not valued too expensively and it also shows a decent 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.
In the past 5 years LZB has always been profitable.
Each year in the past 5 years LZB had a positive operating cash flow.
1.2 Ratios
LZB has a Return On Assets (5.18%) which is in line with its industry peers.
The Return On Equity of LZB (9.75%) is comparable to the rest of the industry.
LZB has a Return On Invested Capital (7.49%) which is in line with 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 10.34%.
| 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
LZB has a Profit Margin of 4.72%. This is comparable to the rest of the industry: LZB outperforms 51.56% of its industry peers.
In the last couple of years the Profit Margin of LZB has remained more or less at the same level.
LZB has a Operating Margin (7.42%) which is in line with its industry peers.
LZB's Operating Margin has declined in the last couple of years.
The Gross Margin of LZB (43.92%) is better than 81.25% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LZB is destroying value.
Compared to 1 year ago, LZB has less shares outstanding
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
An Altman-Z score of 3.13 indicates that LZB is not in any danger for bankruptcy at the moment.
The Altman-Z score of LZB (3.13) is comparable to the rest of the 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 | 3.13 |
ROIC/WACC0.76
WACC9.89%
2.3 Liquidity
A Current Ratio of 1.91 indicates that LZB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.91, LZB is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
A Quick Ratio of 1.31 indicates that LZB should not have too much problems paying its short term obligations.
LZB has a better Quick ratio (1.31) than 67.19% of its industry peers.
| 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.
LZB shows a small growth in Revenue. In the last year, the Revenue has grown by 3.04%.
LZB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.36% yearly.
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
LZB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.69% yearly.
LZB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.21% yearly.
EPS Next Y12.83%
EPS Next 2Y11.24%
EPS Next 3Y9.51%
EPS Next 5Y9.69%
Revenue Next Year3.45%
Revenue Next 2Y3.66%
Revenue Next 3Y3.17%
Revenue Next 5Y3.21%
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 accelerating.
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
With a Price/Earnings ratio of 13.51, LZB is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of LZB is on the same level as its industry peers.
LZB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 11.97, the valuation of LZB can be described as very reasonable.
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 21.90, LZB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 11.97 |
4.2 Price Multiples
LZB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LZB is cheaper than 70.31% 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 78.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.46 | ||
| EV/EBITDA | 6.4 |
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)1.05
PEG (5Y)2.12
EPS Next 2Y11.24%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
LZB's Dividend Yield is rather good when compared to the industry average which is at 3.49. LZB pays more dividend than 82.81% of the companies in the same industry.
LZB's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
The dividend of LZB is nicely growing with an annual growth rate of 9.12%!
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
35.11% of the earnings are spent on dividend by LZB. This is a low number and 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 2Y11.24%
EPS Next 3Y9.51%
39.58
+0.16 (+0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners104.68%
Inst Owner Change6.88%
Ins Owners0.73%
Ins Owner Change19.09%
Market Cap1.63B
Analysts74.29
Price Target46.92 (18.54%)
Short Float %7.06%
Short Ratio6.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 11.97 | ||
| P/S | 0.77 | ||
| P/FCF | 14.46 | ||
| P/OCF | 8.73 | ||
| P/B | 1.6 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 6.4 |
EPS(TTM)2.93
EY7.4%
EPS(NY)3.31
Fwd EY8.35%
FCF(TTM)2.74
FCFY6.91%
OCF(TTM)4.54
OCFY11.46%
SpS51.08
BVpS24.72
TBVpS18.5
PEG (NY)1.05
PEG (5Y)2.12
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 | 3.13 |
F-Score8
WACC9.89%
ROIC/WACC0.76
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 Y12.83%
EPS Next 2Y11.24%
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 Year3.45%
Revenue Next 2Y3.66%
Revenue Next 3Y3.17%
Revenue Next 5Y3.21%
EBIT growth 1Y3.75%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year40.34%
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%