La-Z-Boy, Inc. (LZB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tempur Sealy International, Inc.

HNI Corp.

Arhaus, Inc.

Ethan Allen Interiors, Inc.

Leggett & Platt, Inc.

La-Z-Boy, Inc.

Hooker Furnishings Corp.

The Lovesac Co.

MasterBrand, Inc.

Helen of Troy Ltd.

Sleep Number Corp.

Why is La-Z-Boy, Inc. ?

High Management Efficiency with a high ROE of 15.06%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 3.31% of over the last 5 years

Flat results in Jul 25

OPERATING CASH FLOW(Y) Lowest at USD 170.47 MM
ROCE(HY) Lowest at 9.09%
DEBT-EQUITY RATIO (HY) Highest at 17.76 %

With ROE of 12.84%, it has a very attractive valuation with a 1.63 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.96%, its profits have risen by 2.2% ; the PEG ratio of the company is 2.3

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.96% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to La-Z-Boy, Inc. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is La-Z-Boy, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

La-Z-Boy, Inc.

-13.61%

0.39

39.60%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.10%

EBIT Growth (5y)

-0.69%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.92

Tax Ratio

31.39%

Dividend Payout Ratio

35.73%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

28.87%

ROE (avg)

15.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.32

EV to EBIT

8.37

EV to EBITDA

4.39

EV to Capital Employed

1.40

EV to Sales

0.54

PEG Ratio

Dividend Yield

2.91%

ROCE (Latest)

16.80%

ROE (Latest)

9.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 236.91 MM

DIVIDEND PER SHARE(HY)

Highest at USD 12.4

DIVIDEND PAYOUT RATIO(Y)

Highest at 46.37%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.59 times

-7What is not working for the Company

INTEREST(HY)

At USD 0.27 MM has Grown at 33.83%

ROCE(HY)

Lowest at 8.11%

INTEREST COVERAGE RATIO(Q)

Lowest at 40,262.89

DEBT-EQUITY RATIO (HY)

Highest at 24.9 %

Here's what is working for La-Z-Boy, Inc.

Dividend per share

Highest at USD 12.4 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 236.91 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Highest at 4.59 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 46.37%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 34.21 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for La-Z-Boy, Inc.

Interest Coverage Ratio

Lowest at 40,262.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 0.27 MM has Grown at 33.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 24.9 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio