LZBLa-Z-Boy Incorporated
Is the business good?
The checks split: earnings fully cash-backed (2.3×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LZB?
La-Z-Boy Incorporated earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.1 points above what the capital costs: growth creates value
- Operating margin
- 5.0%
Operating margin · Furnishings, Fixtures & Appliances median 7.8% · 12 months to Q1 2027
- Cash conversion
- 2.34×
Cash conversion · 2.00× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 7.9% |
| FY2022 | 8.8% |
| FY2023 | 9.0% |
| FY2024 | 7.4% |
| FY2025 | 6.4% |
| FY2026 | 6.1% |
Details›
- Gross margin12 months to Q1 2027
- 44%
- Operating margin12 months to Q1 2027
- 5.0%
- Net margin12 months to Q1 2027
- 3.9%
- Free cash flow margin
- 4.9%
- Revenue, trailing twelve months
- $2.11B
- Free cash flow, trailing twelve months
- $102M
- Net income, trailing twelve months
- $81M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Furnishings, Fixtures & Appliances
Ranks #5 of 13 by RyuScore