NYSE:LZB

Stock Analysis Report

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.


Snowflake Analysis

Flawless balance sheet and good value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.6%

LZB

-9.1%

US Consumer Durables

-2.6%

US Market


1 Year Return

-40.3%

LZB

-30.6%

US Consumer Durables

-13.3%

US Market

Return vs Industry: LZB underperformed the US Consumer Durables industry which returned -30.6% over the past year.

Return vs Market: LZB underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

LZBIndustryMarket
7 Day-3.6%-9.1%-2.6%
30 Day-28.3%-37.3%-15.2%
90 Day-37.6%-40.9%-22.2%
1 Year-39.2%-40.3%-29.7%-30.6%-11.5%-13.3%
3 Year-24.4%-28.1%-29.2%-32.4%13.2%5.7%
5 Year-22.6%-28.5%-24.2%-29.2%31.8%17.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LZB ($19.81) is trading below our estimate of fair value ($58.46)

Significantly Below Fair Value: LZB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LZB is poor value based on its PE Ratio (12.1x) compared to the Consumer Durables industry average (6.6x).

PE vs Market: LZB is good value based on its PE Ratio (12.1x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: LZB is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: LZB is overvalued based on its PB Ratio (1.3x) compared to the US Consumer Durables industry average (0.7x).


Next Steps

Future Growth

How is La-Z-Boy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LZB's forecast earnings growth (16.6% per year) is above the savings rate (1.7%).

Earnings vs Market: LZB's earnings (16.6% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: LZB's revenue (4.6% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: LZB's revenue (4.6% 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 $31.7M impacting its January 25 2020 financial results.

Growing Profit Margin: LZB's current net profit margins (4.3%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: LZB's earnings have grown 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 (-23.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (10%).


Return on Equity

High ROE: LZB's Return on Equity (10.6%) 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 ($603.3M) exceed its short term liabilities ($328.5M).

Long Term Liabilities: LZB's short term assets ($603.3M) exceed its long term liabilities ($384.6M).


Debt to Equity History and Analysis

Debt Level: LZB is debt free.

Reducing Debt: LZB has no debt compared to 5 years ago when its debt to equity ratio was 0.02%.

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's current dividend yield, its reliability and sustainability?

2.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LZB's dividend (2.83%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: LZB's dividend (2.83%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LZB has been paying a dividend for less than 10 years.

Growing Dividend: LZB's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.3%), 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 (25.6% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Kurt Darrow (64yo)

16.58s

Tenure

US$6,561,010

Compensation

Mr. Kurt L. Darrow has been the President and Chief Executive Officer at La-Z-Boy Inc. since September 9, 2003. Mr. Darrow served as the President of La-Z-Boy Residential, flagship brand and largest divisi ...


CEO Compensation Analysis

Compensation vs Market: Kurt's total compensation ($USD6.56M) is above average for companies of similar size in the US market ($USD3.25M).

Compensation vs Earnings: Kurt's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kurt Darrow
Chairman16.58yrsUS$6.56m1.27% $11.6m
Melinda Whittington
Senior VP & CFO1.83yrsUS$2.50m0.071% $649.6k
Darrell Edwards
Senior VP & COO0.92yrUS$1.98m0.097% $888.8k
Otis Sawyer
Senior VP & President of La-Z-Boy Portfolio Brands12.17yrsUS$1.54m0.24% $2.2m
Lindsay Barnes
VP, Corporate Controller & Chief Accounting Officer2.67yrsno data0.015% $135.4k
David Behen
Chief Information Officer & VP2.83yrsno datano data
Kathy Liebmann
Director of Investor Relations & Corporate Communications14.67yrsno datano data
Stephen Krull
VP, General Counsel & Corporate Secretary1.25yrsno data0.016% $144.3k
Katie Vanderjagt
Chief Human Resources Officer1.67yrsno datano data
Bob Ireland
Head of Strategic Initiatives14yrsno datano data

2.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: LZB's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kurt Darrow
Chairman16.58yrsUS$6.56m1.27% $11.6m
H. Levy
Independent Director23.25yrsUS$196.11k0.13% $1.2m
Nido Qubein
Independent Director14.25yrsUS$206.11k0.10% $937.4k
W. McCollough
Lead Director4.67yrsUS$226.11k0.10% $947.7k
Edwin Holman
Independent Director10.25yrsUS$205.35k0.094% $860.0k
Lauren Peters
Independent Director3.67yrsUS$172.34k0.020% $184.2k
Janet Kerr
Independent Director11.17yrsUS$194.32k0.088% $805.7k
Michael Lawton
Independent Director6.67yrsUS$197.07k0.041% $371.4k
Sarah Gallagher
Independent Director3.67yrsUS$172.34k0.020% $184.2k
Rebecca O'Grady
Independent Director0.67yrno datano data

7.7yrs

Average Tenure

65.5yo

Average Age

Experienced Board: LZB's board of directors are considered experienced (7.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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$911.908m
  • Shares outstanding: 46.03m
  • 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 internationally. It operates through Upholstery, Casegoods, and Retail segments. The Upholstery segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas. It sells its products directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, England Custom Comfort Center locations, dealers, and other independent retailers. The Casegoods segment imports, markets, and distributes casegoods (wood) furniture, including bedroom sets, dining room sets, entertainment centers, and occasional pieces, as well as manufactures upholstered furniture. This segment sells its products to dealers, La-Z-Boy Furniture Galleries stores, and other independent retailers under the American Drew, Hammary, and Kincaid brands. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. It operates a network of 156 company-owned La-Z-Boy Furniture Galleries stores. La-Z-Boy Incorporated also produces reclining chairs; and manufactures and distributes residential furniture. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is based in Monroe, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 01:58
End of Day Share Price2020/04/06 00:00
Earnings2020/01/25
Annual Earnings2019/04/27


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.