La-Z-Boy Inc

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LZB : NYSE : Consumer Goods
$29.1 -0.2 | -0.68%
Today's Range: 29.0 - 29.55
Avg. Daily Volume: 392400.0
01/18/17 - 10:03 AM ET

Financial Analysis


LA-Z-BOY INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. LA-Z-BOY INC has strong liquidity. Currently, the Quick Ratio is 1.68 which shows 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 5.18% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)376.58382.89
EBITDA ($mil)40.3739.99
EBIT ($mil)33.1733.58
Net Income ($mil)20.8320.95


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)130.42101.44
Total Assets ($mil)823.04786.02
Total Debt ($mil)0.654.97
Equity ($mil)561.73534.05


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin41.439.77
EBITDA Margin10.7110.44
Operating Margin8.818.77
Sales Turnover1.841.85
Return on Assets9.639.26
Return on Equity14.1113.53
Debt Q2 FY16 Q2 FY15
Current Ratio2.972.92
Debt/Capital0.00.01
Interest Expense0.120.13
Interest Coverage283.49252.48


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)49.0350.29
Div / share0.10.08
EPS0.420.41
Book value / share11.4610.62
Institutional Own % n/a n/a
Avg Daily Volume392282.0374864.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 35.34 for the Household Durables industry and a discount compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 2.54 indicates a discount versus the S&P 500 average of 2.84 and a discount versus the industry average of 2.82. 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 18.39 Peers 35.34   LZB 9.97 Peers 13.65

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 15.37 Peers 26.33   LZB 3.56 Peers 0.79

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 2.54 Peers 2.82   LZB 12.85 Peers 10.57

Average. 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 valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

LZB is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LZB 0.94 Peers 1.20   LZB 4.20 Peers 21.34

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 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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