La-Z-Boy Incorporated manufactures, markets, imports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. The company was founded in 1927 and is based in Monroe, Michigan.
LZB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for La-Z-Boy Inc. To summarize, we found that La-Z-Boy Inc ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 108% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of La-Z-Boy Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 89.04 -- which is good for besting 96.41% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately merely 20.63% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
LZB's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 39.5% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LZB, try MBUU, WWE, LBTYA, MNIQQ, and LSYN.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
La-Z-Boy (LZB) opens down slightly after execs warned on this morning's conference call that the current quarter is seeing a negative impact from COVID-19. Earlier this month, La-Z-Boy cut its global workforce by 10% and closed an upholstery factory in Mississippi. Shares of La-Z-Boy are down 0.50% in early trading...
La-Z-Boy Incorporated (LZB) Q4 2020 Earnings Conference Call June 24, 2020 8:30 am ET Corporate Participants Kathy Liebmann - Director, Investor Relations and Corporate Communications Kurt Darrow - Chairman, President and Chief Executive Officer Melinda Whittington - Chief Financial Officer Conference Call participants Bobby Griffin - Raymond James John Baugh...