LA-Z-BOY INC (LZB) Stock Fundamental Analysis
USA - NYSE:LZB - US5053361078 - Common Stock
34.54 USD
-0.27 (-0.78%)
34.68 USD
+0.14 (+0.41%)
LZB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 63 industry peers in the Household Durables industry. LZB has only an average score on both its financial health and profitability. LZB is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LZB had positive earnings in the past year.
In the past year LZB had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 4.76%, LZB is in line with its industry, outperforming 57.14% of the companies in the same industry.
With a Return On Equity value of 9.01%, LZB perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
LZB has a Return On Invested Capital (6.96%) 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 10.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 9.01% | ||
| ROIC | 6.96% |
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 (4.35%) which 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.
LZB has a Operating Margin of 6.93%. This is comparable to the rest of the industry: LZB outperforms 49.21% of its industry peers.
LZB's Operating Margin has declined in the last couple of years.
LZB has a Gross Margin of 43.79%. This is amongst the best in the industry. LZB outperforms 82.54% of its industry peers.
LZB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.93% | ||
| PM (TTM) | 4.35% | ||
| GM | 43.79% |
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
LZB has less shares outstanding than it did 5 years ago.
LZB has a worse debt/assets ratio than last year.
2.2 Solvency
LZB has an Altman-Z score of 2.95. This is not the best score and indicates that LZB is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.95, LZB perfoms like the industry average, outperforming 52.38% 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 | 2.95 |
ROIC/WACC0.77
WACC9.08%
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.
Looking at the Current ratio, with a value of 1.91, LZB is doing worse than 65.08% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that LZB should not have too much problems paying its short term obligations.
LZB has a better Quick ratio (1.30) than 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for LZB have decreased by -6.71% in the last year.
The Earnings Per Share has been growing slightly by 6.39% on average over the past years.
The Revenue has been growing slightly by 2.18% 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)-6.71%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%-24.19%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%-0.67%
3.2 Future
The Earnings Per Share is expected to grow by 4.35% on average over the next years.
The Revenue is expected to grow by 2.91% on average over the next years.
EPS Next Y-5.43%
EPS Next 2Y1.97%
EPS Next 3Y9.51%
EPS Next 5Y4.35%
Revenue Next Year1.75%
Revenue Next 2Y2.89%
Revenue Next 3Y3.17%
Revenue Next 5Y2.91%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 12.42, the valuation of LZB can be described as correct.
Based on the Price/Earnings ratio, LZB is valued a bit cheaper than 60.32% of the companies in the same industry.
LZB is valuated cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.34 indicates a reasonable valuation of LZB.
Based on the Price/Forward Earnings ratio, LZB is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, LZB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 11.34 |
4.2 Price Multiples
88.89% of the companies in the same industry are more expensive than LZB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LZB indicates a somewhat cheap valuation: LZB is cheaper than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.95
EPS Next 2Y1.97%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.56%. 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 2.76. LZB pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, LZB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
On average, the dividend of LZB grows each year by 9.12%, 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)9.12%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
LZB pays out 38.86% 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.
DP38.86%
EPS Next 2Y1.97%
EPS Next 3Y9.51%
34.54
-0.27 (-0.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.59%
Inst Owner Change-2.71%
Ins Owners2.61%
Ins Owner Change16.34%
Market Cap1.42B
Analysts74.29
Price Target41.82 (21.08%)
Short Float %5.91%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend0.84
Dividend Growth(5Y)9.12%
DP38.86%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.72%
Min EPS beat(2)-15.39%
Max EPS beat(2)-2.05%
EPS beat(4)1
Avg EPS beat(4)-2.41%
Min EPS beat(4)-15.39%
Max EPS beat(4)9.27%
EPS beat(8)4
Avg EPS beat(8)4.77%
EPS beat(12)8
Avg EPS beat(12)12.02%
EPS beat(16)11
Avg EPS beat(16)11.28%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)1.39%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)1.95%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)10
Avg Revenue beat(12)1.58%
Revenue beat(16)13
Avg Revenue beat(16)1.96%
PT rev (1m)0%
PT rev (3m)-10.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.34%
EPS NY rev (1m)8.15%
EPS NY rev (3m)-16.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 11.34 | ||
| P/S | 0.68 | ||
| P/FCF | 15.12 | ||
| P/OCF | 8.31 | ||
| P/B | 1.4 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)2.78
EY8.05%
EPS(NY)3.05
Fwd EY8.82%
FCF(TTM)2.28
FCFY6.61%
OCF(TTM)4.16
OCFY12.03%
SpS51.1
BVpS24.66
TBVpS18.43
PEG (NY)N/A
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 9.01% | ||
| ROCE | 9.67% | ||
| ROIC | 6.96% | ||
| ROICexc | 8.84% | ||
| ROICexgc | 11.27% | ||
| OM | 6.93% | ||
| PM (TTM) | 4.35% | ||
| GM | 43.79% | ||
| FCFM | 4.47% |
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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 168.21% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.24% | ||
| Profit Quality | 102.75% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.95 |
F-Score8
WACC9.08%
ROIC/WACC0.77
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)-6.71%
EPS 3Y-2.07%
EPS 5Y6.39%
EPS Q2Q%-24.19%
EPS Next Y-5.43%
EPS Next 2Y1.97%
EPS Next 3Y9.51%
EPS Next 5Y4.35%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y-3.63%
Revenue growth 5Y4.36%
Sales Q2Q%-0.67%
Revenue Next Year1.75%
Revenue Next 2Y2.89%
Revenue Next 3Y3.17%
Revenue Next 5Y2.91%
EBIT growth 1Y-1.75%
EBIT growth 3Y-8.89%
EBIT growth 5Y1.43%
EBIT Next Year29.64%
EBIT Next 3Y19.05%
EBIT Next 5Y11.64%
FCF growth 1Y-31.15%
FCF growth 3Y261.09%
FCF growth 5Y-0.9%
OCF growth 1Y-13.51%
OCF growth 3Y33.34%
OCF growth 5Y2.66%