Quality Investor

La-Z-Boy Incorporated

Rank #91Decline

LZB · NYSE · Consumer Cyclical

La-Z-Boy Incorporated (LZB) — Rank #91 by gross profitability (GP/assets 0.47) · ROE 10.1% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000057131 · all metrics point-in-time as of the filing date.

About

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products in the United States and internationally.

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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.

Industry
Furnishings, Fixtures & Appliances
Sector
Consumer Cyclical
State
MI
Filer Category
Large accelerated filer
Fiscal Year End
April 24

Price History

LZB-0.1% · -0.0% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E, P/B, and dividend yield matter most — book value provides a floor.

Market Cap

$1.22B

P/E (annual)

12.4

P/S (annual)

0.6

P/B

1.2

P/OCF (annual)

6.0

Shareholder Yield

9.8%

Employees

10,200

Industry

Furnishings, Fixtures & Appliances

Exchange

NYSE

Signal Flags

1 green2 red
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Revenue declining YoYRevenue contracted year over year
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.47
Return on equity
10.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.94
Current ratio
1.66×
Net cash
$267.25M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.7%

Growth

1/2 pass
Revenue growth
-9.8%
Piotroski F-Score
N/A
Share dilution
-6.7%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-2.0%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -6.7% — per-share value needs a total required return of -8.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 6.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-5.8%

r = 10% (base)

-2.0%

r = 12%

1.2%

Net debt / market cap: -21.2%

Base FCF: $127.8M3Y mean FCF: $136.9M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

7.9xCheap
6.7xmed 17.2x20.7x

P / S

Price / revenue per share

0.5xCheap
0.4xmed 0.8x1.1x

P / B

Price / book value per share

1.3xCheap
1.2xmed 2.1x2.5x

P / GP

Price / gross profit per share

1.2xCheap
1.1xmed 2.0x2.6x

P / FCF

Price / free cash flow per share

8.7xCheap
7.2xmed 11.5x415.3x

Asset value and restructuring potential (balance-sheet strength) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.47

Primary signal (Novy-Marx).

2nd of 5 SIC 25 peers

Return on equity

10.1%

Gross margin

44.0%

2nd of 5 SIC 25 peers

Revenue growth (YoY)

-9.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2020202120222023
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

-12.2%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.94

4th of 5 SIC 25 peers (best = lowest)

Current ratio

1.66×

4th of 5 SIC 25 peers

Quick ratio

0.86×

Net cash

$267.25M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$127.80M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.25

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.7%

Stock-based comp intensity.

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
37.2%4/5 Strong
FCF coverage
3.37×5/5 Strong
Dividend growth streak
4 yr2/5 Fair
Balance-sheet health
D/E 0.94 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20182023
Capital Return
Value
Hypergrowth