La-Z-Boy Inc

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LZB : NYSE : Consumer Goods
$32.55 up 0.25 | 0.77%
Today's Range: 32.2 - 32.7
Avg. Daily Volume: 496800.0
07/20/17 - 4:02 PM ET

Financial Analysis


LA-Z-BOY INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged 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 1.60 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.81% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)412.71417.07
EBITDA ($mil)50.5841.6
EBIT ($mil)42.7634.39
Net Income ($mil)28.022.72


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)167.77136.65
Total Assets ($mil)888.86800.03
Total Debt ($mil)0.520.8
Equity ($mil)589.92547.14


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin42.6541.05
EBITDA Margin12.259.97
Operating Margin10.368.25
Sales Turnover1.711.91
Return on Assets9.669.9
Return on Equity14.5614.48
Debt Q4 FY16 Q4 FY15
Current Ratio2.63.06
Debt/Capital0.00.0
Interest Expense0.180.12
Interest Coverage238.9284.25


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)48.4749.33
Div / share0.110.1
EPS0.570.45
Book value / share12.1711.09
Institutional Own % n/a n/a
Avg Daily Volume487821.0370100.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 31.53 for the Household Durables industry and a discount compared to the S&P 500 average of 24.41. For additional comparison, its price-to-book ratio of 2.60 indicates a discount versus the S&P 500 average of 3.04 and a discount versus the industry average of 2.72. 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 18.22 Peers 31.53   LZB 10.51 Peers 15.18

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 15.39 Peers 16.76   LZB 2.43 Peers 1.80

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

LZB is trading at a valuation on par with 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 2.60 Peers 2.72   LZB 11.53 Peers 20.31

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.

 

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 1.01 Peers 1.27   LZB -0.35 Peers 24.49

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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