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

Fundamentals

Flawless balance sheet average 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


Market Performance


7 Day Return

1.9%

LZB

0.7%

US Consumer Durables

1.3%

US Market


1 Year Return

20.0%

LZB

33.5%

US Consumer Durables

5.9%

US Market

Return vs Industry: LZB underperformed the US Consumer Durables industry which returned 33.5% over the past year.

Return vs Market: LZB exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

LZBIndustryMarket
7 Day1.9%0.7%1.3%
30 Day1.9%0.3%-1.9%
90 Day4.5%4.8%-1.8%
1 Year22.0%20.0%35.3%33.5%8.3%5.9%
3 Year45.9%39.1%50.0%45.4%45.6%36.2%
5 Year69.2%56.9%38.9%30.4%66.1%47.9%

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?

23.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: LZB ($33.74) is trading above our estimate of fair value ($28.25)

Significantly Undervalued: LZB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LZB is poor value based on its PE Ratio (23.2x) compared to the Consumer Durables industry average (13.2x).

PE vs Market: LZB is poor value based on its PE Ratio (23.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: LZB is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: LZB is overvalued based on its PB Ratio (2.3x) 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 4 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LZB's forecast earnings growth (12.2% per year) is above the savings rate (2.7%).

Earnings vs Market: LZB's earnings (12.2% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: LZB's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LZB's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LZB's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LZB's earnings have grown by 5.1% 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 (-21.7%) over the past year, making it difficult to compare to the Consumer Durables industry average (13.5%).


Return on Equity

High ROE: LZB's Return on Equity (9.9%) is considered low.


Return on Assets

ROA vs Industry: LZB's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: LZB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: LZB's short term assets ($531.3M) exceeds its short term liabilities ($295.9M)

Long Term Liabilities: LZB's short term assets (531.3M) exceeds its long term liabilities (368.2M)


Debt to Equity History and Analysis

Debt Level: LZB is debt free.

Reducing Debt: LZB currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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

Inventory Level: LZB has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LZB's debt is covered by short term assets.


Next Steps

Dividend

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

1.54%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LZB's dividend (1.54%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: LZB's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: LZB's dividend payments have been volatile in the past 10 years.

Growing Dividend: LZB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.1%), 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 (25.5% payout ratio).


Next Steps

Management

What is the CEO of La-Z-Boy's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Kurt Darrow (64yo)

16.1yrs

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 ($USD6.56M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

2.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: LZB's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

7.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: LZB's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$457,20325 Feb 19
J. Collier
EntityIndividual
Shares12,814
Max PriceUS$35.68

Ownership Breakdown


Management Team

  • Steve Krull (54yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 0.8yrs
  • Kurt Darrow (64yo)

    Chairman

    • Tenure: 16.1yrs
    • Compensation: US$6.56m
  • Otis Sawyer (61yo)

    Senior VP & President of La-Z-Boy Portfolio Brands

    • Tenure: 11.7yrs
    • Compensation: US$1.54m
  • Kathy Liebmann

    Director of Investor Relations & Corporate Communications

    • Tenure: 14.2yrs
  • Bob Ireland

    Head of Strategic Initiatives

    • Tenure: 13.5yrs
  • David Behen

    Chief Information Officer & VP

    • Tenure: 2.3yrs
  • Darrell Edwards (55yo)

    Senior VP & COO

    • Tenure: 0.4yrs
    • Compensation: US$1.98m
  • Melinda Whittington (51yo)

    Senior VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$2.50m
  • Lindsay Barnes (41yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 2.2yrs
  • Katie Vanderjagt

    Chief Human Resources Officer

    • Tenure: 1.2yrs

Board Members

  • H. Levy (69yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$196.11k
  • Nido Qubein (70yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$206.11k
  • W. McCollough (69yo)

    Lead Director

    • Tenure: 4.2yrs
    • Compensation: US$226.11k
  • Ed Holman (72yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$205.35k
  • Lauren Peters (57yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$172.34k
  • Kurt Darrow (64yo)

    Chairman

    • Tenure: 16.1yrs
    • Compensation: US$6.56m
  • Janet Kerr (64yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$194.32k
  • Mike Lawton (60yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$197.07k
  • Sarah Gallagher (67yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$172.34k
  • Becky O’Grady (50yo)

    Independent Director

    • Tenure: 0.2yrs

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$1.573b
  • Shares outstanding: 46.63m
  • 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 Analysis2019/10/14 23:38
End of Day Share Price2019/10/14 00:00
Earnings2019/07/27
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.