La-Z-Boy Incorporated
Find Ratings ReportsLA-Z-BOY INC's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the subsector, the net income growth did not. LA-Z-BOY INC has average liquidity. Currently, the Quick Ratio is 1.14 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 7.95% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 500.41 | 572.72 |
EBITDA ($mil) | 44.17 | 63.03 |
EBIT ($mil) | 32.77 | 52.93 |
Net Income ($mil) | 28.64 | 31.73 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 341.02 | 296.36 |
Total Assets ($mil) | 1918.29 | 1846.36 |
Total Debt ($mil) | 495.75 | 427.29 |
Equity ($mil) | 978.22 | 906.1 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 44.88 | 43.05 |
EBITDA Margin | 8.82 | 11.0 |
Operating Margin | 6.55 | 9.24 |
Sales Turnover | 1.07 | 1.34 |
Return on Assets | 6.13 | 9.41 |
Return on Equity | 12.03 | 19.18 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 1.93 | 1.67 |
Debt/Capital | 0.34 | 0.32 |
Interest Expense | 0.11 | 0.14 |
Interest Coverage | 309.12 | 389.16 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 42.61 | 43.14 |
Div / share | 0.2 | 0.18 |
EPS | 0.66 | 0.74 |
Book value / share | 22.96 | 21.0 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 393685.0 | 396214.0 |
BUY. LA-Z-BOY INC's P/E ratio indicates a significant discount compared to an average of 24.98 for the Furniture and Related Product Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.57 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 12.21. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, LA-Z-BOY INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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LZB 13.35 | Peers 24.98 | LZB 8.46 | Peers 10.17 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. LZB is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. LZB is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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LZB 12.35 | Peers 14.29 | LZB NM | Peers 0.92 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. LZB is trading at a valuation on par with its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. LZB's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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LZB 1.57 | Peers 12.21 | LZB -33.01 | Peers 81.60 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. LZB is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, LZB is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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LZB 0.75 | Peers 1.14 | LZB -16.91 | Peers 18.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. LZB is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. LZB significantly trails its peers on the basis of sales growth. |
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