La-z-boy Inc

LZB

Household Furniture

Mkt Cap

$1.547B

PE

13.14

Debt

Cash

$333.2M

EV

FCF

$134.1M

Market Cap

$1.547B

P/E Ratio

13.14

Debt

Cash

$333.2M

EV

FCF

$134.1M

Charts data: {"Earnings":[{"time":"2015-04-24","value":70378000},{"time":"2016-04-29","value":78851000},{"time":"2017-04-28","value":85500000},{"time":"2018-04-27","value":80459000},{"time":"2019-04-26","value":68349000},{"time":"2020-04-24","value":77352000},{"time":"2021-04-23","value":106415000},{"time":"2022-04-29","value":150010000},{"time":"2023-04-28","value":150664000}],"Sales":[{"time":"2015-04-24","value":1425395000},{"time":"2016-04-29","value":1525398000},{"time":"2017-04-28","value":1520060000},{"time":"2018-04-27","value":1583947000},{"time":"2019-04-26","value":1745401000},{"time":"2020-04-24","value":1703982000},{"time":"2021-04-23","value":1734244000},{"time":"2022-04-29","value":2356811000},{"time":"2023-04-28","value":2349433000}],"Net Margins":[{"time":"2015-04-24","value":0.04937438394269659},{"time":"2016-04-29","value":0.05169208298424411},{"time":"2017-04-28","value":0.05624777969290686},{"time":"2018-04-27","value":0.050796522863454395},{"time":"2019-04-26","value":0.039159482548709434},{"time":"2020-04-24","value":0.04539484572020127},{"time":"2021-04-23","value":0.06136103108905091},{"time":"2022-04-29","value":0.06364956714815062},{"time":"2023-04-28","value":0.06412781296593689}],"Assets":[{"time":"2015-04-24","value":774604000},{"time":"2016-04-29","value":800029000},{"time":"2017-04-28","value":888855000},{"time":"2018-04-27","value":892967000},{"time":"2019-04-26","value":1059790000},{"time":"2020-04-24","value":1434889000},{"time":"2021-04-23","value":1786322000},{"time":"2022-04-29","value":1932089000},{"time":"2023-04-28","value":1866263000}],"Stockholders Equity":[{"time":"2015-04-24","value":533100000},{"time":"2016-04-29","value":557212000},{"time":"2017-04-28","value":601105000},{"time":"2018-04-27","value":625216000},{"time":"2019-04-26","value":696976000},{"time":"2020-04-24","value":716306000},{"time":"2021-04-23","value":782146000},{"time":"2022-04-29","value":819622000},{"time":"2023-04-28","value":952097000}],"ROE":[{"time":"2015-04-24","value":0.13201650722190958},{"time":"2016-04-29","value":0.1415098741592069},{"time":"2017-04-28","value":0.14223804493391337},{"time":"2018-04-27","value":0.12868992476200225},{"time":"2019-04-26","value":0.0980650696724134},{"time":"2020-04-24","value":0.10798736852685863},{"time":"2021-04-23","value":0.1360551610568871},{"time":"2022-04-29","value":0.18302339371075935},{"time":"2023-04-28","value":0.15824438056206458}],"ROA":[{"time":"2015-04-24","value":0.13636387108767836},{"time":"2016-04-29","value":0.15629808419444796},{"time":"2017-04-28","value":0.14708810773410735},{"time":"2018-04-27","value":0.14487545452407535},{"time":"2019-04-26","value":0.12235820304022495},{"time":"2020-04-24","value":0.0827673778250443},{"time":"2021-04-23","value":0.08168348147758354},{"time":"2022-04-29","value":0.10701163352205825},{"time":"2023-04-28","value":0.11329539298587606}]}

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, and entertainment centers. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, England Custom Comfort Center locations, dealers, and other independent retailers. The company's Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. This segment operates a network of 161 company-owned La-Z-Boy Furniture Galleries stores. La-Z-Boy Incorporated also produces reclining chairs; and manufactures and distributes residential furniture. Its Corporate and Other segment sells the products through its website. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is based in Monroe, Michigan.

Sector

CODI

10-Q
10/28/23
10-Q
7/29/23
10-K
4/29/23
10-Q
1/28/23
10-Q
10/29/22
10-Q
7/30/22
10-K
4/30/22
10-Q
1/22/22
10-Q
10/23/21
10-Q
7/24/21
10-K
4/24/21
10-Q
1/23/21
10-Q
10/24/20
10-Q
7/25/20
10-K
4/25/20
10-Q
1/25/20
10-Q
10/26/19
10-Q
7/27/19
10-K
4/27/19
10-Q
1/26/19
10-Q
10/27/18
10-Q
7/28/18
10-K
4/28/18
10-Q
1/27/18

DCF

Discounted Cash Flow Valuation of La-z-boy Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$134.1M	$132.6M	$131.2M	$129.7M	$128.3M	$127M	$125.6M	$124.2M	$122.9M	$121.5M	$120.2M	$1.202B
DCF		$115.3M	$99.18M	$85.31M	$73.38M	$63.12M	$54.29M	$46.7M	$40.17M	$34.55M	$29.72M	$297.2M
Value	$938.9M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 9.2%

Earnings Stability 55%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	04-2015	04-2016	04-2017	04-2018	04-2019	04-2020	04-2021	04-2022	04-2023	TTM
Net Margin	4.9%	5.2%	5.6%	5.1%	3.9%	4.5%	6.1%	6.4%	6.4%	5.7%
ROA	14%	16%	15%	14%	12%	8.3%	8.2%	11%	11%	8.5%
ROE	13%	14%	14%	13%	9.8%	11%	14%	18%	16%	12%

What is the average Net Margin?

The average Net Margin over the past 5 years is +5.41%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.45%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +10.87%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.59%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +13.53%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.23%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	04-2015	04-2016	04-2017	04-2018	04-2019	04-2020	04-2021	04-2022	04-2023	TTM
Debt FCF	-	0.01	0.00	0.01	0.00	0.63	0.00	-	-	-
Debt Equity	0.00	0.00	0.00	0.00	0.00	0.10	0.00	-	-	-
MIN
Graham Stability	-	-	-	100%	84%	99%	100%	100%	100%	84%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.06.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.84.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	04-2016	04-2018	04-2020	04-2022	Trend
Revenue	6.4%	8.2%	11%	-0.31%	1.3%
Net Income	9.7%	13%	25%	0.44%	2.9%
Stockholders Equity	8%	8.8%	9.9%	16%	0.87%
FCF	6.5%	11%	4.9%	5.5K%	420%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +8.2%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.31%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +13.37%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +2.86%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +8.78%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.87%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +11.42%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +421.62%.