La-Z-Boy Incorporated

La-Z-Boy Incorporated

LZBยทNYSE

$36.43

-0.44%
Consumer CyclicalFurnishings, Fixtures & Appliances

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.

At a Glance

Live Snapshot
Market Cap$1.50B
EPS2.3900
P/E Ratio16.51
Earnings Date06/16/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 16.5).

Valuation inputs: P/E 16.5, earnings yield +6.1%, momentum -0.4%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +9.8%, ROIC +5.9%).

Profitability stack: net margin +4.7%, ROE +9.8%, ROIC +5.9%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +46.3%, momentum -0.4%, net margin +4.7%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

lzb

La-Z-Boy Incorporated Market vs Earnings Trajectory

LZB ยท NYSE
Current Price
$36.43
EPS (TTM)
$2.03

Performance Analysis

EPS Growth

-8.1%

Slight earnings decline may be temporary. Monitor future quarters for trend reversal.

Price-EPS Relationship

Aligned

Both price and earnings are declining together, reflecting deteriorating business fundamentals.

Stock Price Change

-11.7%

Over the 1Y period, stock price has decreased by 11.7%.

P/E Ratio (TTM)

16.5x

Moderate P/E ratio suggests fair market valuation relative to earnings.

La-Z-Boy Incorporated

La-Z-Boy Incorporated Fair Value Envelope

LZB ยท NYSE

Our analysis suggests that LZB has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $36.43, this represents a potential HIDDEN relative to our calculated worth for La-Z-Boy Incorporated.

Intrinsic Value
Current Price: $36.43
3Y-30.0%
5Y+43.0%
10Y+52.0%
3Y-11.0%
5Y+24.0%
10Y+38.0%
3Y-34.0%
5Y+29.0%
10Y+26.0%
3Y+137.0%
5Y+14.0%
10Y+67.0%
3Y+4561.0%
5Y-4.0%
10Y+29.0%
3Y-7.0%
5Y+34.0%
10Y+140.0%
La-Z-Boy Incorporated

La-Z-Boy Incorporated Profit Bridge

LZB ยท NYSE
Revenue2.11B
Cost of Goods Sold (1.18B)
Gross Profit926.42M
Operating Expenses (790.58M)
Operating Income135.84M
Interest Expense (545.00K)
Other Income/Expense11.30M
Pretax Income147.13M
Income Tax (46.18M)
Net Income99.56M
Net Income
99.56M

Profitability Analysis

Gross Margin

43.9%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

6.4%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

4.7%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

31.4%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

43.92%
Gross Profit Margin
2%
3Y+18.0%
5Y+4.0%
10Y+15.0%
6.44%
Operating Profit Margin
-13%
3Y-27.0%
5Y-8.0%
10Y-20.0%
4.72%
Net Profit Margin
-21%
3Y-26.0%
5Y+4.0%
10Y-9.0%
9.75%
Return on Equity
-20%
3Y-47.0%
5Y-12.0%
10Y-33.0%
5.18%
Return on Assets
-19%
3Y-29.0%
5Y-4.0%
10Y-48.0%
5.89%
Return on Invested Capital
-19%
3Y-44.0%
5Y-11.0%
10Y-52.0%
LZB

La-Z-Boy Incorporated Cash Conversion Engine

LZB ยท NYSE
Net Income99.56M
Depreciation & Amortization123.58M
Stock-Based Compensation0.00
Change in Working Capital-83.02M
Others42.04M
Capital Expenditures-74.28M
Free Cash Flow112.99M

Cash Flow Quality Analysis

FCF Conversion Rate

113.5%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

39.7%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+8.0%

Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.

Working Capital Impact

-$83.02M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extensionโ€”monitor closely.

Cash Flow Quality Insight

Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.

lzb

La-Z-Boy Incorporated Funding & Solvency Profile

LZB ยท NYSE
Cash & Cash Equivalents306.12M
Net Receivables123.80M
Inventory235.05M
Other Current Assets143.73M
Total Current Assets809 M
Property, Plant & Equipment865.53M
Goodwill & Intangible Assets341.04M
Long-Term Investments12.62M
Other Non-Current Assets51.55M
Total Non-Current Assets930 M
Total Assets
2.09B

Financial Health Analysis

Current Ratio

1.66x

Strong liquidity. The company has adequate resources to meet short-term liabilities.

Debt-to-Equity Ratio

0.98x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

321 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

39% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

lzb

La-Z-Boy Incorporated Street Expectations Map

LZB ยท NYSE

No Target Data

No analyst price targets available for lzb.

lzb

La-Z-Boy Incorporated Insider Positioning

LZB ยท NYSE

During the last 12 months, insiders have sold $892K worth of LZB shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

2.2K

81.40K

Net Activity

-81K

-$81K

6-9 Months

Bought

0

0.00

Sold

3.4K

120.39K

Net Activity

-120K

-$120K

9-12 Months

Bought

0

0.00

Sold

18.3K

690.68K

Net Activity

-691K

-$691K

Top Buyers

No buying activity

Top Sellers

1
WMD

Whittington Melinda D

Director, Officer: President & Ceo

10.3K sharesโ€ข2 transactions

$389K

2
LMA

Leggett Michael Adam

Officer: Sr Vp & Chief Supply Chain Off

3.2K sharesโ€ข3 transactions

$121K

3
KJ

Kerr Janet

Director

3.4K sharesโ€ข1 transactions

$120K

4
RRZ

Richmond Raphaell Z.

Officer: Vp, Gc & Chief Compliance Off

1.4K sharesโ€ข3 transactions

$53K

5
RRM

Reeder Rebecca M

Officer: Pres., Retail Lzb Furn. Gall.

1.3K sharesโ€ข1 transactions

$50K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $892K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.64%
Dividend Yield
-6%
3Y-4.0%
5Y+100.0%
10Y+63.0%
ย 

lzb Dividend History

LZB
10Y CAGR +9%
Latest $0.242
Annual $1.166
5 year growth trend
Last Period: +0%