NYSE:LZB

Stock Analysis Report

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Executive Summary

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has La-Z-Boy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LZB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LZB's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.2%

LZB

0.07%

US Consumer Durables

-1.3%

US Market


1 Year Return

44.0%

LZB

42.7%

US Consumer Durables

41.9%

US Market

Return vs Industry: LZB matched the US Consumer Durables industry which returned 44.6% over the past year.

Return vs Market: LZB exceeded the US Market which returned 36.5% over the past year.


Shareholder returns

LZBIndustryMarket
7 Day6.2%0.07%-1.3%
30 Day8.5%6.9%7.5%
90 Day14.4%15.9%15.9%
1 Year45.6%44.0%44.6%42.7%44.8%41.9%
3 Year41.8%36.4%53.5%47.2%49.1%41.0%
5 Year76.6%64.4%94.7%80.7%113.1%92.8%

Long-Term Price Volatility Vs. Market

How volatile is La-Z-Boy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is La-Z-Boy undervalued compared to its fair value and its price relative to the market?

15.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LZB ($42) is trading below our estimate of fair value ($49.46)

Significantly Below Fair Value: LZB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LZB is poor value based on its PE Ratio (27.1x) compared to the US Consumer Durables industry average (14x).

PE vs Market: LZB is poor value based on its PE Ratio (27.1x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: LZB is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: LZB is overvalued based on its PB Ratio (2.5x) compared to the US Consumer Durables industry average (1.9x).


Next Steps

Future Growth

How is La-Z-Boy forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LZB's forecast earnings growth (12.7% per year) is above the savings rate (2%).

Earnings vs Market: LZB's earnings (12.7% per year) are forecast to grow slower than the US market (20% per year).

High Growth Earnings: LZB's earnings are forecast to grow, but not significantly.

Revenue vs Market: LZB's revenue (5.9% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: LZB's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LZB's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has La-Z-Boy performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LZB has a large one-off loss of $58.7M impacting its January 23 2021 financial results.

Growing Profit Margin: LZB's current net profit margins (4.5%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: LZB's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: LZB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LZB had negative earnings growth (-6.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (32.8%).


Return on Equity

High ROE: LZB's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is La-Z-Boy's financial position?


Financial Position Analysis

Short Term Liabilities: LZB's short term assets ($888.2M) exceed its short term liabilities ($550.8M).

Long Term Liabilities: LZB's short term assets ($888.2M) exceed its long term liabilities ($401.3M).


Debt to Equity History and Analysis

Debt Level: LZB is debt free.

Reducing Debt: LZB had no debt 5 years ago.

Debt Coverage: LZB has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LZB has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is La-Z-Boy current dividend yield, its reliability and sustainability?

1.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LZB's dividend (1.43%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: LZB's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (3.76%).


Stability and Growth of Payments

Stable Dividend: LZB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LZB's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.6%), LZB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LZB's dividends in 3 years are forecast to be well covered by earnings (23.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Kurt Darrow (65 yo)

17.42yrs

Tenure

US$5,256,122

Compensation

Mr. Kurt L. Darrow has been the President and Chief Executive Officer at La-Z-Boy Inc. since September 9, 2003. He joined La-Z-Boy in 1979, Mr. Darrow served as the President of La-Z-Boy Residential, flags...


CEO Compensation Analysis

Compensation vs Market: Kurt's total compensation ($USD5.26M) is above average for companies of similar size in the US market ($USD3.68M).

Compensation vs Earnings: Kurt's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kurt Darrow
Chairman17.42yrsUS$5.26m0.98%
$ 19.1m
Melinda Whittington
Senior VP & CFO2.67yrsUS$1.75m0.048%
$ 942.9k
Darrell Edwards
Senior VP & COO1.75yrsUS$1.68m0.11%
$ 2.1m
Stephen Krull
VP, General Counsel & Corporate Secretary2.08yrsUS$1.19m0.019%
$ 365.0k
Otis Sawyer
Senior VP & President of La-Z-Boy Portfolio Brands13yrsUS$1.28m0.12%
$ 2.4m
Lindsay Barnes
VP, Corporate Controller3.5yrsno data0.021%
$ 408.7k
David Behen
Chief Information Officer & VP3.67yrsno datano data
Kathy Liebmann
Director of Investor Relations & Corporate Communications15.5yrsno datano data
Raphael Richmond
Senior Director of Corporate Compliance & Employment Law1.83yrsno datano data
Katie Vanderjagt
VP & Chief Human Resources Officer2.5yrsno datano data
Bob Ireland
Head of Strategic Initiatives14.83yrsno datano data
Tj Linz
President of Retail Division1.83yrsno datano data

3.1yrs

Average Tenure

55yo

Average Age

Experienced Management: LZB's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kurt Darrow
Chairman17.42yrsUS$5.26m0.98%
$ 19.1m
James Hackett
Directorno datano data0.0022%
$ 43.6k
H. Levy
Independent Director24.08yrsUS$204.66k0.043%
$ 839.6k
Nido Qubein
Independent Director15.08yrsUS$213.74k0.015%
$ 294.0k
W. McCollough
Independent Lead Director5.5yrsUS$231.91k0.017%
$ 322.0k
Lauren Peters
Independent Director4.5yrsUS$178.99kno data
Janet Kerr
Independent Director12yrsUS$202.72k0.00076%
$ 14.8k
Michael Lawton
Independent Director7.5yrsUS$202.26kno data
Sarah Gallagher
Independent Director4.5yrsUS$178.99kno data
Rebecca O'Grady
Independent Director1.5yrsUS$148.41kno data

7.5yrs

Average Tenure

65yo

Average Age

Experienced Board: LZB's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LZB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

La-Z-Boy Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: La-Z-Boy Incorporated
  • Ticker: LZB
  • Exchange: NYSE
  • Founded: 1927
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$1.944b
  • Shares outstanding: 46.30m
  • Website: https://www.la-z-boy.com

Number of Employees


Location

  • La-Z-Boy Incorporated
  • One La-Z-Boy Drive
  • Monroe
  • Michigan
  • 48162
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LZBNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
LAZDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972

Biography

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and intern...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/02 00:31
End of Day Share Price2021/03/01 00:00
Earnings2021/01/23
Annual Earnings2020/04/25


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.