La-Z-Boy Incorporated (LZB)
Consumer Cyclical · NYQ · US
Fundamentals
Valuation and ratings
La-Z-Boy Incorporated trades at USD39.87, which is 124% below the USD89.23 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 40 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 16.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About La-Z-Boy Incorporated
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products in the United States and internationally. The company operates through Wholesale and Retail segments. Its Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, casegoods (wood) furniture, including bedroom sets, dining room sets, entertainment centers, and occasional pieces. This segment sells its products directly to La-Z-Boy Stores, operators of La-Z-Boy Comfort Studio and branded space locations, England Custom Comfort Center locations, dealers, and other independent retailers. The Retail segment sells upholstered furniture, casegoods, and other home furnishing accessories to the end consumer through its retail stores. It licenses La-Z-Boy brand name on various products; and operates Joybird, an omni-channel, direct to consumer retailer and manufacturer of upholstered furniture, as well as sells to the end consumer primarily online through its www.joybird.com website and small-format stores in key markets. 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 headquartered in Monroe, Michigan.
LZB passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Super investor ownership
11 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- D. E. Shaw, D. E. Shaw & Co., Inc.$14.21M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$8.29M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$8.27M · 0.0% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$7.19M · 0.0% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$6.42M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is La-Z-Boy Incorporated (LZB) undervalued?
Against our discounted cash flow estimate of USD89.23, LZB at USD39.87 is 124% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own LZB?
11 of the institutions we track reported a position in LZB in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is LZB's P/E ratio?
LZB trades at 16.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.