La-Z-Boy Inc (LZB) stock analysis
Close on Nov 12, 2026Market cap $1.30BP/E 16.4Yield 2.35%
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed14 of 30 checks passed
La-Z-Boy passes 14 of the 30 checks behind our score; 1 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 5/6
- Dividend
- 3/6
What stands out
Trading below fair value
The share price of $32.94 is below our fair value estimate of $33.52.
Return on capital over 10%
Return on invested capital was 10.9%, above the 10% that usually covers the cost of capital.
No debt
La-Z-Boy has no borrowings on its latest balance sheet.
Interest well covered
Operating income covers interest expense 169.3 times.
What to watch
Margin of safety under 20%
The price is 1.7% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 8.0% over the last twelve months and averaged 13.7% over five years; we look for 15% on both.
Earnings shrank over 5 years
Net income shrank 0.9% a year on average over the last five fiscal years.
Revenue growing under 10% a year
Revenue grew -3.3% a year over the last three fiscal years, short of the 10% we look for.
Valuation2/6
P/E above its 5-year median
La-Z-Boy's P/E of 16.6 is above its own 5-year median of 13.2.
P/E below the industry
La-Z-Boy's P/E of 16.6 is below the Consumer discretionary median of 19.6.
EV/EBITDA above its 5-year median
La-Z-Boy's EV/EBITDA of 6.9 is above its 5-year median of 6.1.
P/B above the industry
La-Z-Boy's price-to-book of 1.30 is above the Consumer discretionary median of 1.26.
Trading below fair value
The share price of $32.94 is below our fair value estimate of $33.52.
Margin of safety under 20%
The price is 1.7% below fair value, less than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew -3.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -10.8% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -11.0% over the last twelve months, against a 5-year average of -0.9% a year.
Growing slower than the industry
Revenue grew 0.2% over the last twelve months; the Consumer discretionary median is 0.2%.
Guidance issued
The latest outlook (fiscal second quarter sales, Aug 18, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin improving
Gross margin was 44.4% over the last twelve months, against 43.8% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 8.0% over the last twelve months and averaged 13.7% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 10.9%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
La-Z-Boy's return on equity of 8.0% is above the Consumer discretionary median of -7.4%.
Earnings shrank over 5 years
Net income shrank 0.9% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 3.9% over the last twelve months, against a 5-year average of 5.7%.
Net margin above the industry
La-Z-Boy's net margin of 3.9% is above the Consumer discretionary median of -2.4%.
Financial health5/6
No debt
La-Z-Boy has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 169.3 times.
Short-term assets cover short-term debts
Current assets are 1.66 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.63; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
La-Z-Boy paid dividends worth 2.9% of the share price over the last twelve months.
Yield below Treasuries
The 2.9% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; La-Z-Boy yields 2.9%.
Dividend was cut
The dividend per share fell by more than 10% at least once in the last 10 fiscal years.
Covered by earnings
Dividends take 47.4% of net income.
Covered by free cash flow
Dividends take 37.7% of free cash flow.
Fair value
How we estimate itOur estimate per share
$33.52
The share price is 2% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 16.4× | 13.2× | 19.6× | $32.43 | 40% |
| EV/EBITDA | 7.0× | 6.1× | 7.8× | $33.38 | 35% |
| P/B | 1.4× | 1.5× | 1.3× | $34.88 | 10% |
| Earnings power | 9.4% cost of equity | – | – | $35.86 | 15% |
| Fair value | $33.52 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 13.2
- Consumer discretionary median 19.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $17.54M
- Value traded per 1% price move
- $12.70M
Downside
Medium risk
- Typical loss in a bad month
- 24.7%
- Volatility (annualized)
- 44%
- Sharpe ratio, 1 year
- 0.05
- Beta to the S&P 500 (5Y)
- 0.91
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +0.8% | -3.3% | +4.2% | +3.4% | |
| Gross profit | +1.1% | -1.0% | +4.8% | +4.8% | |
| Operating income | -4.9% | -15.1% | -1.1% | +0.3% | |
| Net income | +2.4% | -12.2% | -0.9% | +2.6% | |
| EPS, diluted | +5.1% | -10.8% | +1.4% | +4.8% | |
| Free cash flow | +13.1% | -2.1% | -14.0% | +3.6% | |
| Dividend per share | -9.2% | +3.3% | +16.2% | +7.8% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 15.1% | 14.4% | 9.9% | |
| Return on assets | 10.2% | 6.6% | 5.1% | |
| Current ratio | 2.60 | 1.51 | 1.80 | |
| Debt to equity | 0.00 | – | – | |
| Net debt to EBITDA | -0.93× | – | – | |
| Interest coverage | – | – | 246.6× | |
| Inventory turnover | 5.2× | 4.9× | 5.0× | |
| Capex to revenue | 1.3% | 2.2% | 3.6% | |
| Diluted shares | 49M | 46M | 41M |
Where the cash went
Fiscal 2022 to 2026, five years combined
La-Z-Boy generated $833.68M from operations and spent $786.30M on capital expenditure, dividends and share buybacks. 44% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 4.8% | 1.07× | 1.91× | 9.9% |
| FY2025 | 4.7% | 1.10× | 1.90× | 9.8% |
| FY2024 | 6.0% | 1.08× | 1.94× | 12.6% |
| FY2023 | 6.4% | 1.24× | 2.17× | 17.2% |
| FY2022 | 6.4% | 1.27× | 2.35× | 18.9% |
| FY2021 | 6.1% | 1.08× | 2.18× | 14.4% |
| FY2020 | 4.5% | 1.37× | 1.80× | 11.2% |
| FY2019 | 3.9% | 1.79× | 1.51× | 10.6% |
| FY2018 | 5.1% | 1.78× | 1.48× | 13.5% |
| FY2017 | 5.7% | 1.80× | 1.49× | 15.1% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$101.99M
- Cash generatingOperating cash flow above zero$204.11M
- Return on assets improvedROA up on the prior year5.2% → 5.3%
- Earnings backed by cashOperating cash flow above net income$204.11M vs $101.99M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.91 → 1.80
- No dilutionShare count did not rise42M → 41M
- Gross margin improvedGross margin up on the prior year43.92% → 44.04%
- More efficientAsset turnover rose1.10 → 1.11
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