La-Z-Boy Incorporated (LZB) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: 2.61%
• Average Volume (3M): 663.42K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.79
• Revenue Growth: 2.18%
• EPS Growth: -22.35%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.47
• Shares Outstanding: 41,207,237
• 10 Day Avg. Volume: 633,648
• 30 Day Avg. Volume: 663,419
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: 6.95
• 1Y Price Target: $43.00
• Price Target Upside: 27.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: $37.00 ▲(9.79% Upside)

La-Z-Boy's overall stock score reflects stable financial health and strategic growth initiatives, offset by technical bearishness and challenges in revenue and cash flow. The company's fair valuation and positive corporate events provide a balanced outlook.

La-Z-Boy Incorporated Business Overview & Revenue Model

Company Description

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 Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, and entertainment centers. This segment 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 company's Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. This segment operates a network of 161 company-owned La-Z-Boy Furniture Galleries stores. La-Z-Boy Incorporated also produces reclining chairs; and manufactures and distributes residential furniture. Its Corporate and Other segment sells the products through its website. 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.

How the Company Makes Money

La-Z-Boy generates revenue primarily through the sale of its furniture products across various channels. The company operates a wholesale business that supplies its products to a network of independent retailers and national chains, contributing a significant portion of its revenue. Additionally, La-Z-Boy's retail segment, which includes company-owned stores and franchised locations, directly sells furniture to consumers, enhancing its earnings. Customization options, such as fabric and leather choices, allow La-Z-Boy to cater to individual customer preferences, often resulting in higher margins. Strategic partnerships with retailers and online platforms also expand its reach and boost sales. Seasonal promotions and marketing campaigns further drive consumer interest and sales volume, contributing to the company's overall profitability.

La-Z-Boy Incorporated Financial Statement Overview

Summary

La-Z-Boy demonstrates stable financial health with efficient cost management and moderate leverage. However, challenges in revenue growth and cash flow generation are evident, necessitating improvements for sustained growth.

Income Statement

La-Z-Boy's income statement shows a mixed performance. The company has maintained a healthy gross profit margin of approximately 44% in the TTM, indicating efficient cost management. However, the net profit margin has decreased to 4.72%, reflecting challenges in maintaining profitability. Revenue has declined by 15.7% in the TTM, indicating a potential slowdown in sales. Despite these challenges, the EBIT and EBITDA margins remain stable, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.48, indicating moderate leverage. The return on equity is at 9.83%, showing a reasonable return for shareholders. The equity ratio stands at around 52.8%, suggesting a strong equity base relative to total assets. Overall, the balance sheet indicates financial stability with manageable debt levels.

Cash Flow

Cash flow analysis reveals some concerns, with a decline in free cash flow growth by 16.7% in the TTM. The operating cash flow to net income ratio is 0.45, indicating that operating cash flow covers net income adequately. However, the free cash flow to net income ratio is 0.60, suggesting some pressure on cash generation relative to net income. The company needs to focus on improving cash flow generation to support future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.11B	2.11B	2.05B	2.35B	2.36B	1.73B
Gross Profit	922.27M	926.42M	881.67M	1.01B	915.97M	740.26M
EBITDA	256.34M	271.31M	290.76M	322.84M	318.68M	180.32M
Net Income	91.60M	99.56M	122.63M	150.66M	150.02M	106.46M
Balance Sheet
Total Assets	1.93B	1.92B	1.91B	1.87B	1.93B	1.79B
Cash, Cash Equivalents and Short-Term Investments	318.54M	331.07M	347.91M	349.77M	262.95M	411.78M
Total Debt	501.70M	490.86M	481.75M	445.91M	430.11M	362.64M
Total Liabilities	897.93M	890.19M	900.08M	914.17M	1.11B	1.00B
Stockholders Equity	1.02B	1.02B	1.00B	941.84M	810.73M	773.50M
Cash Flow
Free Cash Flow	94.12M	112.99M	104.58M	136.35M	2.42M	271.96M
Operating Cash Flow	171.25M	187.27M	158.13M	205.17M	79.00M	309.92M
Investing Cash Flow	-100.02M	-98.39M	-81.55M	-70.12M	-78.37M	-40.70M
Financing Cash Flow	-96.01M	-102.61M	-81.23M	-37.14M	-144.56M	-141.05M

La-Z-Boy Incorporated Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 33.7 is below the 20-day moving average (MA) of 35.29, below the 50-day MA of 36.45, and below the 200-day MA of 40.14, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 37.71 is Neutral, neither overbought nor oversold. The STOCH value of 17.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LZB.

La-Z-Boy Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETD	77 Outperform	744.43M	14.54	10.70%	6.56%	-4.89%	-19.26%
MBC	74 Outperform	1.73B	18.20	6.88%	―	4.05%	-47.49%
AMWD	70 Outperform	966.65M	11.84	9.17%	―	-8.56%	-17.10%
LZB	64 Neutral	$1.39B	15.44	9.09%	2.61%	2.18%	-22.35%
BSET	55 Neutral	140.42M	56.82	1.48%	4.95%	-7.22%	0.00%
MLKN	46 Neutral	1.36B	-35.89	-2.89%	3.74%	1.14%	-149.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

La-Z-Boy Incorporated Corporate Events

La-Z-Boy Elects Directors at Annual Meeting

On August 26, 2025, La-Z-Boy Incorporated held its Annual Meeting of Shareholders, where nine director nominees were elected to serve until the 2026 annual meeting. Additionally, the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for fiscal year 2026 was ratified, and the compensation of the company’s named executive officers was approved through a non-binding advisory vote.

La-Z-Boy Reports Q1 Results and Southeast Expansion

La-Z-Boy Incorporated reported its first quarter results for the period ending July 26, 2025, with total sales of $492 million, a 1% decrease from the previous year. Despite this, the company saw growth in its Retail and Wholesale segments, with a 5% increase in Retail written sales and a 1% increase in Wholesale delivered sales. The company also announced a 15-store acquisition in the Southeast region and launched a new brand identity. However, challenges such as soft industry demand impacted margins, prompting La-Z-Boy to adjust operations to navigate the current environment.

La-Z-Boy Announces Acquisition of Southeast Stores

On July 14, 2025, La-Z-Boy Incorporated announced an asset purchase agreement to acquire a network of 15 La-Z-Boy Furniture Galleries® stores and four warehouses in the southeast United States from Atlanta Furniture Galleries, LLC. This acquisition, expected to close in late October 2025, will increase La-Z-Boy’s company-owned store count to 220, representing 60% of its total network, and is anticipated to be immediately accretive to sales and profits. The acquisition is part of La-Z-Boy’s strategy to expand in the rapidly growing southeast region, despite challenging macroeconomic conditions, and aligns with its Century Vision objectives to grow its Retail and direct-to-consumer segments.

La-Z-Boy Enhances Credit Agreement with Key Amendments

On July 1, 2025, La-Z-Boy Incorporated entered into a Second Amendment to its Credit Agreement, which extends the maturity date of its Credit Facility to July 1, 2030, increases the accordion basket for additional loans to $125 million, removes the SOFR credit spread adjustment, and decreases the consolidated fixed charge coverage ratio under the financial covenant. This amendment, made with Wells Fargo Bank and other lenders, aims to provide La-Z-Boy with enhanced financial flexibility and potentially improve its operational and market positioning.

La-Z-Boy Director James Hackett to Step Down

On June 18, 2025, James P. Hackett informed La-Z-Boy Incorporated that he will not be standing for re-election at the company’s 2025 Annual Meeting of Shareholders. His decision is not due to any disagreement with the company’s operations, policies, or practices, and the company expressed gratitude for his service and contributions.

La-Z-Boy Reports Strong Q4 and Fiscal 2025 Results

La-Z-Boy Incorporated reported strong financial results for the fourth quarter and fiscal year 2025, with sales growth across all segments despite challenges in the housing market and global economic volatility. The company achieved a 3% increase in consolidated sales for both the quarter and the year, expanded its retail footprint significantly, and returned $113 million to shareholders, reflecting its robust operational strategies and market positioning.