La-Z-Boy Inc

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LZB : NYSE : Consumer Goods
$25.6 up 0.25 | 0.99%
Today's Range: 25.2 - 25.675
Avg. Daily Volume: 579800.0
09/20/17 - 3:59 PM ET

Financial Analysis


LA-Z-BOY INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. LA-Z-BOY INC has strong liquidity. Currently, the Quick Ratio is 1.59 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 7.90% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)357.08340.78
EBITDA ($mil)24.0629.26
EBIT ($mil)16.322.46
Net Income ($mil)11.6513.81


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)142.33140.83
Total Assets ($mil)868.52798.07
Total Debt ($mil)0.450.71
Equity ($mil)591.31547.98


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin41.1341.38
EBITDA Margin6.738.58
Operating Margin4.566.59
Sales Turnover1.771.91
Return on Assets9.649.94
Return on Equity14.1614.48
Debt Q1 FY17 Q1 FY16
Current Ratio2.83.1
Debt/Capital0.00.0
Interest Expense0.160.12
Interest Coverage103.81195.29


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)48.2749.17
Div / share0.110.1
EPS0.240.28
Book value / share12.2511.14
Institutional Own % n/a n/a
Avg Daily Volume657363.0395806.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.01 for the Household Durables industry and a significant discount compared to the S&P 500 average of 24.97. To use another comparison, its price-to-book ratio of 2.07 indicates a discount versus the S&P 500 average of 3.11 and a significant discount versus the industry average of 4.87. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry 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 within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LZB 14.94 Peers 23.01   LZB 9.31 Peers 15.44

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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LZB 13.37 Peers 18.03   LZB NM Peers 0.92

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

LZB is trading at a discount to 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LZB 2.07 Peers 4.87   LZB 8.28 Peers 16.92

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LZB 0.80 Peers 1.22   LZB 0.76 Peers 14.60

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 industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

LZB significantly trails its peers on the basis of sales growth

 

 

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