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La-Z-Boy Incorporated (LZB)
:LZB
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La-Z-Boy Incorporated
(NYSE:LZB)
73Outperform
La-Z-Boy Incorporated (LZB) vs. S&P 500 (SPY)
Market Cap
$1.54B
Dividend Yield2.25%
Average Volume (3M)669.87K
Price to Earnings (P/E)12.8
Beta (1Y)0.81
Revenue Growth1.81%
EPS Growth8.09%
CountryUS
Employees10,200
SectorConsumer Cyclical
Sector Strength61
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)2.92
Shares Outstanding41,288,850
10 Day Avg. Volume492,393
30 Day Avg. Volume669,867
Financial Highlights & Ratios
PEG Ratio1.58
Price to Book (P/B)N/A
Price to Sales (P/S)0.76
Price to Cash Flow (P/CF)7.00
P/FCF Ratio7.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$46.00Price Target Upside23.23% Upside
Rating ConsensusHold
Number of Analyst Covering1
La-Z-Boy Incorporated Business Overview & Revenue Model
Company DescriptionLa-Z-Boy Incorporated (LZB) is a leading furniture manufacturer based in the United States, renowned for its comfortable seating products, particularly recliners. The company operates in the home furnishings sector, designing and producing a wide range of furniture items, including sofas, loveseats, chairs, and home accessories. Through its retail and wholesale channels, La-Z-Boy serves both domestic and international markets, offering both custom and standard furniture solutions.
How the Company Makes MoneyLa-Z-Boy Incorporated generates revenue primarily through the sale of its furniture products across various distribution channels. The company operates a network of company-owned retail stores and independent dealers who sell La-Z-Boy branded products. Additionally, La-Z-Boy supplies furniture to third-party retailers, expanding its market reach. Customization options also serve as a revenue stream, allowing customers to select materials and configurations tailored to their preferences. The company benefits from strategic partnerships with fabric and material suppliers, enabling efficient production and cost management. Furthermore, La-Z-Boy's e-commerce platform supports direct-to-consumer sales, enhancing its ability to reach a broader audience and drive sales growth.
La-Z-Boy Incorporated Financial Statement Overview
Summary
La-Z-Boy Incorporated exhibits a stable financial position with strong profitability and a healthy balance sheet. While revenue has slightly declined, the company maintains efficient operations and a robust capital structure. Cash flow generation is solid but could benefit from higher growth rates. Overall, the financial health of the company is commendable, with room for improvement in revenue and cash flow expansion.Income Statement
La-Z-Boy Incorporated shows stable profitability with a gross profit margin of 43.8% TTM and a net profit margin of 5.9% TTM. However, there is a slight decline in revenue, with a TTM revenue of $2.09 billion compared to $2.35 billion in 2022. The EBIT and EBITDA margins are moderate at 7.5% and 12.6% TTM, respectively, indicating efficient operations despite competitive pressures.76
Positive
Balance Sheet
The company's balance sheet is strong, with a debt-to-equity ratio of 0.48 TTM, reflecting a manageable debt level. The return on equity stands at 12.1% TTM, indicating good returns for shareholders. The equity ratio is solid at 52.1% TTM, showcasing a robust capital structure with substantial equity backing.82
Very Positive
Cash Flow
Cash flow performance is decent, with an operating cash flow to net income ratio of 1.44 TTM, indicating effective cash generation. The free cash flow to net income ratio is 0.9 TTM, supported by consistent capital expenditures. However, the free cash flow growth rate is modest at 6.1% from the previous period, suggesting a need for improvement in cash flow expansion.70
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.09B | 2.05B | 2.35B | 2.36B | 1.73B | 1.70B | Gross Profit |
| 915.44M | 881.67M | 1.01B | 915.97M | 740.26M | 721.45M | EBIT |
| 157.61M | 150.80M | 211.44M | 206.76M | 136.74M | 118.76M | EBITDA |
| 297.73M | 290.76M | 322.84M | 318.68M | 169.41M | 215.33M | Net Income Common Stockholders |
| 123.93M | 122.63M | 150.66M | 150.02M | 106.46M | 77.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 83.66M | 347.91M | 343.37M | 245.59M | 391.21M | 261.55M | Total Assets |
| 586.52M | 1.91B | 1.87B | 1.93B | 1.79B | 1.43B | Total Debt |
| 45.66M | 481.75M | 445.91M | 430.11M | 362.64M | 409.54M | Net Debt |
| -37.99M | 140.65M | 102.54M | 184.53M | -28.58M | 147.99M | Total Liabilities |
| 239.58M | 900.08M | 914.17M | 1.11B | 1.00B | 718.58M | Stockholders Equity |
| 347.56M | 1.00B | 941.84M | 810.73M | 773.50M | 700.75M |
| Cash Flow | Free Cash Flow | ||||
| 110.99M | 104.58M | 136.35M | 2.42M | 271.96M | 118.21M | Operating Cash Flow |
| 178.04M | 158.13M | 205.17M | 79.00M | 309.92M | 164.24M | Investing Cash Flow |
| -98.72M | -81.55M | -70.12M | -78.37M | -40.70M | -40.77M | Financing Cash Flow |
| -97.96M | -81.23M | -37.14M | -144.56M | -141.05M | 2.56M |
La-Z-Boy Incorporated Technical Analysis
Negative
37.33
Price Trends
42.60
Negative
43.17
Negative
41.63
Negative
Market Momentum
-1.06
Negative
43.89
Neutral
49.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LZB, the sentiment is Negative. The current price of 37.33 is below the 20-day moving average (MA) of 39.09, below the 50-day MA of 42.60, and below the 200-day MA of 41.63, indicating a bearish trend. The MACD of -1.06 indicates Negative momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LZB.
La-Z-Boy Incorporated Risk Analysis
La-Z-Boy Incorporated disclosed 19 risk factors in its most recent earnings report. La-Z-Boy Incorporated reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
La-Z-Boy Incorporated Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.54B | 12.80 | 12.40% | 2.25% | 1.81% | 8.09% | |
68 Neutral | $181.42M | 9.61 | 13.04% | 1.92% | 7.75% | 27.88% | |
66 Neutral | $17.15B | 15.80 | 53.91% | 1.60% | -0.50% | 24.11% | |
60 Neutral | $970.31M | ― | -50.58% | 2.78% | -7.27% | -272.76% | |
59 Neutral | $11.22B | 10.13 | -1.22% | 3.96% | 1.32% | -18.57% | |
56 Neutral | $132.48M | ― | -3.83% | 5.12% | -11.78% | -13.89% | |
52 Neutral | $1.98B | 14.68 | 17.42% | 3.13% | 3.80% | 182.70% |
* Consumer Cyclical Sector Average
Performance Comparison
LZB
La-Z-Boy Incorporated
37.33
2.04
5.78%
BSET
Bassett Furniture
15.22
2.05
15.57%
FLXS
Flexsteel
34.43
-3.85
-10.06%
HNI
HNI
42.22
-0.51
-1.19%
LEG
Leggett & Platt
7.19
-11.44
-61.41%
WSM
Williams-Sonoma
141.68
-10.19
-6.71%
La-Z-Boy Incorporated Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -17.14% | Next Earnings Date: Jun 24, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment with strong sales growth across segments, successful strategic initiatives, and recognition for responsible practices. However, challenges in the international segment and consumer traffic concerns were noted.Highlights
Consolidated Sales Growth
La-Z-Boy reported consolidated delivered sales of $522 million, marking a 4% increase compared to the previous year.
Retail Segment Success
The retail segment saw an 11% increase in sales, driven by same-store sales growth, acquisitions, and new store openings.
Joybird Sales Increase
Joybird experienced a 9% increase in delivered sales and achieved breakeven operating profit for the quarter.
Operating Margin Expansion
Non-GAAP operating margin increased by 20 basis points year-over-year, reaching 6.8%.
Strategic Acquisitions
La-Z-Boy opened three new company-owned stores and acquired two independent stores, with plans to acquire two more.
Recognition for Responsible Practices
La-Z-Boy was named in Newsweek's 2025 list of America's responsible companies, acknowledging its commitment to responsible manufacturing.
Lowlights
International Business Challenges
The international wholesale segment faced significant customer transition challenges, impacting operating margins.
Consumer Traffic Concerns
Despite improved execution, consumer traffic remained negative, affecting overall sales potential.
Volatile Industry Environment
The furniture industry continues to face challenges from low existing home sales and high mortgage rates.
Company Guidance
During the La-Z-Boy Fiscal 2025 Third Quarter Conference Call, the company reported substantial growth across its segments, with consolidated delivered sales reaching $522 million, marking a 4% increase from the previous year. The retail segment led the growth with an 11% increase in sales, bolstered by a 7% rise in same-store sales and strategic acquisitions. The company also achieved a non-GAAP operating margin expansion of 20 basis points, resulting in a 6.8% non-GAAP operating margin and diluted EPS of $0.68. Additionally, La-Z-Boy opened three new company-owned stores and completed strategic acquisitions in Ohio and Michigan. The Joybird business saw a 10% increase in written sales, contributing to the company's strong performance despite industry challenges. As La-Z-Boy continues to execute its Century Vision strategy, it remains focused on expanding its brand reach and improving operational efficiencies, with expectations for further growth in the fourth quarter, projecting delivered sales of approximately $545 million and a non-GAAP operating margin between 8.5% and 9.5%.La-Z-Boy Incorporated Corporate Events
Business Operations and StrategyFinancial Disclosures
La-Z-Boy Reports Strong Q3 2025 Financial Results
Positive
Feb 18, 2025
La-Z-Boy Incorporated reported strong third quarter results for fiscal 2025, with sales of $522 million, a 4% increase compared to the previous year. The company achieved high-end guidance sales and margin growth, driven by robust retail segment performance and significant same-store sales increases, despite ongoing macroeconomic challenges, showcasing its market resilience and strategic execution.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.