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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LZB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LZB had positive earnings in the past year.
LZB had a positive operating cash flow in the past year.
LZB had positive earnings in each of the past 5 years.
In the past 5 years LZB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LZB (6.33%) is comparable to the rest of the industry.
LZB's Return On Equity of 12.14% is in line compared to the rest of the industry. LZB outperforms 51.56% of its industry peers.
With a Return On Invested Capital value of 7.75%, LZB perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LZB is in line with the industry average of 12.00%.
| 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's Profit Margin of 5.92% is in line compared to the rest of the industry. LZB outperforms 51.56% of its industry peers.
LZB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.48%, LZB is in line with its industry, outperforming 51.56% of the companies in the same industry.
LZB's Operating Margin has been stable in the last couple of years.
LZB has a better Gross Margin (43.76%) 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LZB is still creating some value.
Compared to 1 year ago, LZB has less shares outstanding
Compared to 5 years ago, LZB has less shares outstanding
The debt/assets ratio for LZB is higher compared to a year ago.
2.2 Solvency
LZB has an Altman-Z score of 3.08. This indicates that LZB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.08, LZB is in line with its industry, outperforming 59.38% 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 | 3.08 |
ROIC/WACC0.87
WACC8.95%
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.
LZB's Current ratio of 1.85 is on the low side compared to the rest of the industry. LZB is outperformed by 68.75% of its industry peers.
A Quick Ratio of 1.21 indicates that LZB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.21, LZB is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
LZB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.99%.
Measured over the past years, LZB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.19% on average per year.
Looking at the last year, LZB shows a small growth in Revenue. The Revenue has grown by 1.80% 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)-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
LZB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.11% yearly.
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
A Price/Earnings ratio of 13.68 indicates a correct valuation of LZB.
LZB's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 23.99. LZB is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.25, which indicates a correct valuation of LZB.
LZB's Price/Forward Earnings ratio is in line with the industry average.
LZB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 12.25 |
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 | 15.07 | ||
| EV/EBITDA | 6.73 |
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)1.67
EPS Next 2Y5.33%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, 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 3.59. 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
On average, the dividend of LZB grows each year by 8.74%, 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)8.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
LZB pays out 27.72% of its income as dividend. This is a sustainable payout ratio.
The dividend of LZB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.72%
EPS Next 2Y5.33%
EPS Next 3Y6.76%
40.5
-0.39 (-0.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners99.98%
Inst Owner Change0.73%
Ins Owners0.73%
Ins Owner Change0.23%
Market Cap1.67B
Analysts74.29
Price Target46.92 (15.85%)
Short Float %6.39%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend0.76
Dividend Growth(5Y)8.74%
DP27.72%
Div Incr Years3
Div Non Decr Years3
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)-6.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 12.25 | ||
| P/S | 0.8 | ||
| P/FCF | 15.07 | ||
| P/OCF | 9.39 | ||
| P/B | 1.64 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 6.73 |
EPS(TTM)2.96
EY7.31%
EPS(NY)3.31
Fwd EY8.16%
FCF(TTM)2.69
FCFY6.64%
OCF(TTM)4.31
OCFY10.65%
SpS50.66
BVpS24.73
TBVpS18.14
PEG (NY)N/A
PEG (5Y)1.67
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 | 3.08 |
F-Score6
WACC8.95%
ROIC/WACC0.87
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 Year44.06%
EBIT Next 3Y20.28%
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%