Last Updated: 13 Sep 2024
Executive Summary
La-Z-Boy Incorporated (LZB) is a leading manufacturer and retailer of upholstery furniture products. The company has a strong financial position with a market capitalization of $1.68 billion, EBITDA of $207.5 million, and a trailing PE ratio of 14.29. LZB's quarterly earnings growth has been slightly negative in recent quarters, but its revenue growth has been positive. The stock is currently trading at $40.16, below its 52-week high of $45.01.
Company Overview
La-Z-Boy Incorporated was founded in 1927 and is headquartered in Monroe, Michigan. The company manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and display case furniture products in the United States, Canada, and internationally. LZB's products are sold through a network of company-owned stores, independent retailers, and e-commerce channels.
Fundamental Analysis
LZB's financial performance has been solid in recent years. The company's revenue has grown from $1.83 billion in 2019 to $2.06 billion in 2023. Net income has also increased from $128.6 million in 2019 to $144.2 million in 2023. LZB's gross profit margin has been relatively stable in recent years, averaging around 49%. The company's operating margin has also been stable, averaging around 6%.
LZB's balance sheet is also strong. The company has a low level of debt and a high level of cash and equivalents. LZB's current ratio is 1.97 and its debt-to-equity ratio is 0.35.
Technical Analysis
LZB's stock price has been trending sideways in recent months. The stock is currently trading at $40.16, below its 50-day moving average of $40.89 and its 200-day moving average of $37.12. The relative strength index (RSI) is currently at 49.55, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
LZB's stock price is likely to remain range-bound in the near term. The company's financial performance has been solid, but its stock price has been weighed down by concerns about the economic outlook. If the economy improves, LZB's stock price could move higher. However, if the economy worsens, LZB's stock price could move lower.
Long Term Outlook
LZB's long-term outlook is positive. The company has a strong brand name, a loyal customer base, and a solid financial position. LZB is also well-positioned to benefit from the growing demand for furniture products. As the economy improves, LZB's stock price is likely to move higher.
Analyst Recommendations
Analysts are generally bullish on LZB. One analyst has a strong buy rating on the stock, while two analysts have hold ratings. The average analyst target price is $43.
