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

Excellent balance sheet and overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

LZB

2.7%

US Consumer Durables

2.3%

US Market


1 Year Return

-5.6%

LZB

21.0%

US Consumer Durables

17.2%

US Market

Return vs Industry: LZB underperformed the US Consumer Durables industry which returned 21.4% over the past year.

Return vs Market: LZB underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

LZBIndustryMarket
7 Day0.1%2.7%2.3%
30 Day-5.7%3.1%-4.6%
90 Day13.4%26.8%7.4%
1 Year-4.5%-5.6%22.5%21.0%19.8%17.2%
3 Year16.6%11.7%16.9%12.0%37.4%28.3%
5 Year20.0%11.4%45.5%36.5%83.8%63.0%

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?

0.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LZB ($30.66) is trading below our estimate of fair value ($30.74)

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 (22.1x) compared to the US Consumer Durables industry average (14.2x).

PE vs Market: LZB is poor value based on its PE Ratio (22.1x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: LZB is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: LZB is overvalued based on its PB Ratio (2x) compared to the US Consumer Durables industry average (1.6x).


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?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LZB's forecast earnings growth (12% per year) is above the savings rate (2.2%).

Earnings vs Market: LZB's earnings (12% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: LZB's revenue (5.2% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: LZB's revenue (5.2% 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 (13.8%).


Next Steps

Past Performance

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

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LZB has a large one-off loss of $49.8M impacting its July 25 2020 financial results.

Growing Profit Margin: LZB's current net profit margins (4.1%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: LZB's earnings have declined by 0.7% 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 (-5.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (17.8%).


Return on Equity

High ROE: LZB's Return on Equity (9.2%) 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 ($704.0M) exceed its short term liabilities ($424.5M).

Long Term Liabilities: LZB's short term assets ($704.0M) exceed its long term liabilities ($364.2M).


Debt to Equity History and Analysis

Debt Level: LZB's debt to equity ratio (7%) is considered satisfactory.

Reducing Debt: LZB's debt to equity ratio has increased from 0.02% to 7% over the past 5 years.

Debt Coverage: LZB's debt is well covered by operating cash flow (502.4%).

Interest Coverage: LZB earns more interest than it pays, so 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?

1.29%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LZB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LZB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LZB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LZB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LZB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LZB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Kurt Darrow (65 yo)

17yrs

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. 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 ($USD5.26M) is about average for companies of similar size in the US market ($USD4.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kurt Darrow
Chairman17yrsUS$5.26m1.22%
$ 17.2m
Melinda Whittington
Senior VP & CFO2.25yrsUS$1.75m0.049%
$ 688.2k
Darrell Edwards
Senior VP & COO1.33yrsUS$1.68m0.088%
$ 1.2m
Stephen Krull
VP, General Counsel & Corporate Secretary1.67yrsUS$1.19m0.015%
$ 217.6k
Otis Sawyer
Senior VP & President of La-Z-Boy Portfolio Brands12.5yrsUS$1.28m0.15%
$ 2.1m
Lindsay Barnes
VP, Corporate Controller & Chief Accounting Officer3.08yrsno data0.021%
$ 298.4k
David Behen
Chief Information Officer & VP3.25yrsno datano data
Kathy Liebmann
Director of Investor Relations & Corporate Communications15.08yrsno datano data
Katie Vanderjagt
Chief Human Resources Officer2.08yrsno datano data
Bob Ireland
Head of Strategic Initiatives14.42yrsno datano data
Tj Linz
President of Retail Division1.42yrsno datano data
Keith Wilson
President of International1.17yrsno datano data

2.7yrs

Average Tenure

55.5yo

Average Age

Experienced Management: LZB's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kurt Darrow
Chairman17yrsUS$5.26m1.22%
$ 17.2m
H. Levy
Independent Director23.67yrsUS$204.66k0.043%
$ 613.0k
Nido Qubein
Independent Director14.67yrsUS$213.74k0.015%
$ 214.6k
W. McCollough
Independent Lead Director5.08yrsUS$231.91k0.017%
$ 235.1k
Lauren Peters
Independent Director4.08yrsUS$178.99k0%
$ 0
Janet Kerr
Independent Director11.5yrsUS$202.72k0.00076%
$ 10.7k
Michael Lawton
Independent Director7.08yrsUS$202.26k0%
$ 0
Sarah Gallagher
Independent Director4.08yrsUS$178.99k0%
$ 0
Rebecca O'Grady
Independent Director1.08yrsUS$148.41kno data

7.1yrs

Average Tenure

65yo

Average Age

Experienced Board: LZB's board of directors are considered experienced (7.1 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$1.410b
  • Shares outstanding: 46.00m
  • 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 Analysis2020/09/30 00:27
End of Day Share Price2020/09/29 00:00
Earnings2020/07/25
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.