La-Z-Boy Inc

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LZB : NYSE : Consumer Goods
$25.86 -0.18 | -0.69%
Today's Range: 25.69 - 26.21
Avg. Daily Volume: 385,700
09/26/16 - 1:26 PM ET

Financial Analysis


LA-Z-BOY INC's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. LA-Z-BOY INC has strong liquidity. Currently, the Quick Ratio is 1.78 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.61% 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 FY16 Q1 FY15
Net Sales ($mil)340.78341.42
EBITDA ($mil)28.5726.4
EBIT ($mil)21.7720.13
Net Income ($mil)13.8113.68


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)140.83109.96
Total Assets ($mil)798.07761.6
Total Debt ($mil)0.711.09
Equity ($mil)547.98523.81


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin41.1838.22
EBITDA Margin8.387.73
Operating Margin6.395.9
Sales Turnover1.911.89
Return on Assets9.949.37
Return on Equity14.4813.47
Debt Q1 FY16 Q1 FY15
Current Ratio3.13.21
Debt/Capital0.00.0
Interest Expense0.120.11
Interest Coverage189.29179.75


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)49.1750.56
Div / share0.10.08
EPS0.280.27
Book value / share11.1410.36
Institutional Own % n/a n/a
Avg Daily Volume387523.0284943.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 33.09 for the Household Durables industry and a discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 2.35 indicates a discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 3.12. The price-to-sales ratio is well below both the S&P 500 average and 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 16.66 Peers 33.09   LZB 8.89 Peers 16.64

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 13.41 Peers 23.43   LZB 1.52 Peers 0.89

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 significant discount to its peers.

 

Premium. 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 trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LZB 2.35 Peers 3.12   LZB 16.29 Peers 75.11

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 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 0.84 Peers 1.36   LZB 5.89 Peers 16.81

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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