LA-Z-BOY INC (LZB)
US5053361078 - Common Stock
Overall LZB gets a fundamental rating of 5 out of 10. We evaluated LZB against 67 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 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.
In the past 5 years LZB has always been profitable.
In the past 5 years LZB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LZB (6.14%) is comparable to the rest of the industry.
LZB has a Return On Equity (12.04%) which is comparable to the rest of the industry.
LZB has a Return On Invested Capital (7.75%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for LZB is in line with the industry average of 9.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 12.04% | ||
| ROIC | 7.75% |
ROA(3y)7.26%
ROA(5y)6.73%
ROE(3y)16.09%
ROE(5y)13.86%
ROIC(3y)10.68%
ROIC(5y)10.6%
1.3 Margins
Looking at the Profit Margin, with a value of 5.73%, LZB is in line with its industry, outperforming 51.52% of the companies in the same industry.
LZB's Profit Margin has improved in the last couple of years.
LZB has a Operating Margin of 7.53%. This is comparable to the rest of the industry: LZB outperforms 54.55% of its industry peers.
LZB's Operating Margin has improved in the last couple of years.
LZB has a better Gross Margin (43.88%) than 80.30% of its industry peers.
LZB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.53% | ||
| PM (TTM) | 5.73% | ||
| GM | 43.88% |
OM growth 3Y1.72%
OM growth 5Y1.95%
PM growth 3Y12.19%
PM growth 5Y4.77%
GM growth 3Y0.47%
GM growth 5Y1.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LZB is destroying value.
The number of shares outstanding for LZB has been increased compared to 1 year ago.
LZB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LZB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.99 indicates that LZB is not in any danger for bankruptcy at the moment.
LZB has a Altman-Z score of 2.99. This is comparable to the rest of the industry: LZB outperforms 53.03% of its industry peers.
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 | 2.99 |
ROIC/WACC0.72
WACC10.69%
2.3 Liquidity
LZB has a Current Ratio of 1.93. This is a normal value and indicates that LZB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of LZB (1.93) is worse than 62.12% of its industry peers.
A Quick Ratio of 1.30 indicates that LZB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.30, LZB is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
LZB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.35%.
Measured over the past years, LZB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.47% on average per year.
LZB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.90%.
The Revenue has been growing by 8.20% on average over the past years. This is quite good.
EPS 1Y (TTM)-23.35%
EPS 3Y21.54%
EPS 5Y15.47%
EPS growth Q2Q-26.37%
Revenue 1Y (TTM)-16.9%
Revenue growth 3Y11.3%
Revenue growth 5Y8.2%
Revenue growth Q2Q-12.62%
3.2 Future
LZB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.97% yearly.
The Revenue is expected to decrease by -0.57% on average over the next years.
EPS Next Y-28.31%
EPS Next 2Y-11.7%
EPS Next 3Y-5.11%
EPS Next 5Y-1.97%
Revenue Next Year-13.31%
Revenue Next 2Y-5.53%
Revenue Next 3Y-2.33%
Revenue Next 5Y-0.57%
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.
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 11.89 indicates a reasonable valuation of LZB.
LZB's Price/Earnings is on the same level as the industry average.
LZB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.53.
A Price/Forward Earnings ratio of 11.93 indicates a reasonable valuation of LZB.
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 (20.31), we can say LZB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
93.94% of the companies in the same industry are more expensive than LZB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LZB is valued a bit cheaper than 65.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.42 | ||
| EV/EBITDA | 5.87 |
4.3 Compensation for Growth
LZB has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as LZB's earnings are expected to decrease with -5.11% in the coming years.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-11.7%
EPS Next 3Y-5.11%
5. Dividend
5.1 Amount
LZB has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.40, LZB pays a better dividend. On top of this LZB pays more dividend than 89.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, LZB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of LZB is nicely growing with an annual growth rate of 8.43%!
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)8.43%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
27.24% of the earnings are spent on dividend by LZB. This is a low number and sustainable payout ratio.
DP27.24%
EPS Next 2Y-11.7%
EPS Next 3Y-5.11%
LA-Z-BOY INC
NYSE:LZB (5/14/2024, 7:04:00 PM)
After market: 35.9 0 (0%)35.9
+0.18 (+0.5%)
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 Cap1.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 11.93 | ||
| 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)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 12.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.53% | ||
| PM (TTM) | 5.73% | ||
| GM | 43.88% | ||
| 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 | 1.93 | ||
| Quick Ratio | 1.3 | ||
| 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)
Growth
EPS 1Y (TTM)-23.35%
EPS 3Y21.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y-28.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.9%
Revenue growth 3Y11.3%
Revenue growth 5Y
Revenue growth 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