LZB:NYSELa-Z-Boy Incorporated Analysis
Data as of 2026-04-16 - not real-time
$34.22
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
La‑Z‑Boy (LZB) trades at $34.22, roughly 30% below its DCF‑derived fair value of $69.38, indicating a sizable undervaluation. The stock sits beneath its 20‑day ($32.61), 50‑day ($34.63) and 200‑day ($35.79) moving averages, and the MACD histogram is positive, suggesting a modest bullish signal amid an overall bearish trend. RSI at 57 points to neutral momentum, while volume has been decreasing, highlighting limited short‑term buying pressure.
Fundamentally, revenue grew 3.8% YoY to $541.6 M with a 4.36% gross margin, and the company generates solid operating cash flow ($237.7 M) and free cash flow ($194.7 M). A dividend yield of 2.83% backed by a 45% payout ratio appears sustainable, and the forward PE of 11.5 signals attractive value relative to earnings growth. The consumer‑cyclical sector adds cyclical risk, but low beta (~0.93) and a primarily U.S. footprint keep broader market and currency risks modest.
Fundamentally, revenue grew 3.8% YoY to $541.6 M with a 4.36% gross margin, and the company generates solid operating cash flow ($237.7 M) and free cash flow ($194.7 M). A dividend yield of 2.83% backed by a 45% payout ratio appears sustainable, and the forward PE of 11.5 signals attractive value relative to earnings growth. The consumer‑cyclical sector adds cyclical risk, but low beta (~0.93) and a primarily U.S. footprint keep broader market and currency risks modest.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- price below key moving averages indicating bearish bias
- decreasing volume reducing short‑term liquidity
- MACD histogram positive but overall trend still bearish
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- ~30% upside potential versus DCF fair value
- sustainable dividend yield of 2.83%
- forward PE compression to 11.5 suggesting value appeal
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- significant valuation gap and strong cash‑flow generation
- strategic shift toward e‑commerce and retail channels
- stable dividend and low leverage relative to equity
Key Metrics & Analysis
Financial Health
Revenue Growth3.80%
Profit Margin3.93%
P/E Ratio17.1
ROE8.09%
ROA4.31%
Debt/Equity53.88
P/B Ratio1.3
Op. Cash Flow$237.7M
Free Cash Flow$194.7M
Technical Analysis
TrendBearish
RSI57.1
Support$31.25
Resistance$34.32
MA 20$32.61
MA 50$34.63
MA 200$35.79
MACDBullish
VolumeDecreasing
Fear & Greed Index88.98
Valuation
Fair Value$69.38
Target Price$44.50
Upside/Downside30.04%
GradeUndervalued
TypeValue
Dividend Yield2.83%
Risk Assessment
Beta0.93
Volatility27.42%
Sector RiskHigh
Reg. RiskLow
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.