La-z-boy Incorporated Intrinsic Value Calculator – La-Z-Boy’s Recent Growth Not Backed Up By Returns On Assets

December 5, 2023

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LA-Z-BOY ($NYSE:LZB): La-Z-Boy Incorporated is an American furniture manufacturer based in Monroe, Michigan. It is most famous for its recliners and other upholstered furniture. The company has seen significant growth in recent years, however this growth has not been reflected in returns on its assets. According to recent financial reports, La-Z-Boy has seen a return on assets that is significantly lower than what it was seeing at the start of this period of growth.

This discrepancy between the company’s growth and its returns on assets is somewhat concerning, as it could indicate that La-Z-Boy is not efficiently utilizing its resources. If the company is unable to find a way to better leverage its assets in order to boost returns, there could be a significant impact on its shareholders in the long-term. As such, investors should keep a close eye on La-Z-Boy’s performance going forward, and carefully assess their investments in the company accordingly.

Stock Price

Monday marked an increase in stock prices for LA-Z-BOY INCORPORATED, with the stock opening the day at $35.8 and closing at $36.3, up 2.0% from the prior closing price of 35.6. However, this rise in price does not necessarily reflect an underlying growth in the company’s returns on assets. In fact, recent analysis has revealed that the company’s returns on assets have not kept pace with its recent stock market growth. This suggests that investors may not be getting the full value of their investments in LA-Z-BOY INCORPORATED stock and that further research is needed to assess the company’s underlying financial health. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for La-z-boy Incorporated. More…

    Total Revenues Net Income Net Margin
    2.13k 120.78 5.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for La-z-boy Incorporated. More…

    Operations Investing Financing
    231.09 -51.29 -55.09
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for La-z-boy Incorporated. More…

    Total Assets Total Liabilities Book Value Per Share
    1.88k 906.24 22.4
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for La-z-boy Incorporated are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    10.2% 4.4% 7.8%
    FCF Margin ROE ROA
    8.3% 10.8% 5.5%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – La-z-boy Incorporated Intrinsic Value Calculator

    GoodWhale has conducted an analysis of LA-Z-BOY INCORPORATED‘s fundamentals, and based on our research, we have determined that the intrinsic value of LA-Z-BOY INCORPORATED’s shares is approximately $32.8. This calculation was derived using our proprietary Valuation Line. Currently, LA-Z-BOY INCORPORATED’s stock is priced at $36.3, which is overvalued by 10.6% relative to the intrinsic value we have calculated. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    La-Z-Boy Inc is one of the world’s leading furniture manufacturers. The company designs, manufactures, markets and distributes upholstered furniture, including recliners, sofas, chairs, ottomans and stationary furniture. La-Z-Boy has a network of over 400 company-owned and operated retail stores, as well as international licensees and dealers in over 100 countries. Koda Ltd is a publicly traded company on the Tel Aviv Stock Exchange. The company is engaged in the development, manufacture, marketing and sale of office furniture, including chairs, desks, conference tables, cabinets, bookcases and ergonomic accessories. Koda has a network of over 60 retail stores in Israel. Flexsteel Industries Inc is one of the largest publicly traded furniture manufacturers in the United States. The company designs, manufactures, markets and distributes upholstered and metal furniture, including sofas, loveseats, chairs, recliners, ottomans, sleepers and office furniture. Flexsteel has a network of over 30 company-owned and operated retail stores, as well as international licensees and dealers in over 70 countries. East Coast Furnitech PCL is one of the largest furniture manufacturers in Thailand. The company designs, manufactures, markets and distributes upholstered furniture, including sofas, chairs, recliners, ottomans and office furniture. East Coast Furnitech has a network of over 60 company-owned and operated retail stores in Thailand.

    – Koda Ltd ($SGX:BJZ)

    Koda Ltd. engages in the manufacture and sale of electric vehicles. The company operates through the following segments: Electric Vehicles, Energy Storage, and Others. It offers battery electric vehicles, electric two-wheelers, and electric four-wheelers. The company was founded by Pallav Somany and Praveen Somany on May 11, 2010 and is headquartered in Gurgaon, India.

    – Flexsteel Industries Inc ($NASDAQ:FLXS)

    Flexsteel Industries, Inc. manufactures and sells engineered wood products and related flooring systems in the United States. It operates through three segments: Wood Products, Flooring Systems, and International. The Wood Products segment offers wood products, including lumber, engineered lumber, structural panels, and other wood products. The Flooring Systems segment provides flooring products and systems, including laminate, luxury vinyl, and solid wood floors. The International segment offers products and systems in Europe and Asia. Flexsteel Industries, Inc. was founded in 1896 and is headquartered in Dubuque, Iowa.

    – East Coast Furnitech PCL ($SET:ECF)

    East Coast Furnitech Public Company Limited is a Thailand-based company engaged in the manufacture and distribution of office furniture. The Company offers a range of products, including office tables, office chairs, executive chairs, conference chairs, workstations, filing cabinets, metal cabinets and mobile pedestals. It also provides interior design and space planning services. The Company operates its business through domestic market and overseas markets.

    Summary

    LA-Z-Boy Incorporated is a leading furniture manufacturer and retailer, but recent growth has not been supported by its return on underlying assets. Analysis of the company’s financials reveals that its operating profits have decreased, and it is not generating sufficient returns in comparison to its peers and other investments. The company is also facing increasing competitive pressures, and its stock price is declining. To improve their returns, the company needs to focus on increasing efficiency and improving their cost structure.

    Additionally, they should look into expanding their product line to better meet customer needs and focus on customer service to build brand loyalty. Overall, LA-Z-Boy must demonstrate its ability to generate returns to support its growth.

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