📊 LZB Key Takeaways
Is La-Z-Boy Inc. (LZB) a Good Investment?
LA-Z-Boy demonstrates solid financial health with strong liquidity, zero debt, and healthy free cash flow generation, but faces headwinds from declining profitability and earnings despite modest revenue growth. The company's thin operating margins (5.7%) and declining ROE (6.6%) suggest limited operational efficiency, warranting a cautious stance pending stabilization of profitability trends.
LA-Z-BOY shows solid fundamental stability, supported by a debt-free balance sheet, strong liquidity, and healthy free cash flow generation. However, growth quality is only moderate: revenue is rising modestly while net income and diluted EPS are declining, and profitability remains adequate rather than strong. The company looks financially resilient, but the current fundamentals do not yet indicate clear operating momentum.
Why Buy La-Z-Boy Inc. Stock? LZB Key Strengths
- Strong balance sheet with $306.1M cash, zero long-term debt, and 0.00x debt-to-equity ratio providing financial flexibility
- Robust free cash flow generation of $119.0M (7.6% FCF margin) covering capital needs with substantial surplus
- Excellent liquidity position with 1.66x current ratio and 1.18x quick ratio supporting operational stability
- Consistent operating cash flow of $175.7M demonstrating reliable cash generation from core operations
- Debt-free capital structure with $306.12M in cash provides strong balance-sheet flexibility
- Free cash flow of $118.95M and a 7.6% FCF margin indicate real cash generation
- Gross margin of 43.3% and current ratio of 1.66x support operating resilience and liquidity
LZB Stock Risks: La-Z-Boy Inc. Investment Risks
- Declining profitability with net income down 1.4% YoY and diluted EPS down 17.0% YoY despite 3.0% revenue growth indicating margin compression
- Low and declining return metrics (ROE 6.6%, ROA 3.3%) suggest inefficient capital deployment and suboptimal operational performance
- Thin operating margin of 5.7% leaves limited cushion for adverse business conditions or cost pressures in cyclical furniture industry
- Revenue growth of only 3.0% YoY is modest for a company this size, raising concerns about market share or demand trajectory
- Net income fell 1.4% and diluted EPS declined 17.0%, suggesting weaker earnings quality than revenue growth implies
- Operating margin of 5.7% and net margin of 4.4% leave limited room for execution missteps or demand softness
- ROE of 6.6% and ROA of 3.3% indicate relatively modest returns on capital
Key Metrics to Watch
- Operating margin trend and gross margin sustainability given input cost dynamics
- Revenue growth acceleration and comparable store/segment performance by channel
- Return on equity trajectory and capital efficiency improvements
- Operating margin trend
- Free cash flow consistency
La-Z-Boy Inc. (LZB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
La-Z-Boy Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LZB Profit Margin, ROE & Profitability Analysis
LZB vs Market Sector: How La-Z-Boy Inc. Compares
How La-Z-Boy Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is La-Z-Boy Inc. Stock Overvalued? LZB Valuation Analysis 2026
Based on fundamental analysis, La-Z-Boy Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
La-Z-Boy Inc. Balance Sheet: LZB Debt, Cash & Liquidity
LZB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: La-Z-Boy Inc.'s revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.48 reflects profitable operations.
LZB Revenue Growth, EPS Growth & YoY Performance
LZB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $521.8M | $21.7M | $0.52 |
| Q2 2026 | $521.0M | $28.9M | $0.70 |
| Q1 2026 | $492.2M | $18.2M | $0.44 |
| Q3 2025 | $500.4M | $28.4M | $0.66 |
| Q2 2025 | $511.4M | $27.2M | $0.63 |
| Q1 2025 | $481.7M | $26.2M | $0.61 |
| Q3 2024 | $500.4M | $28.6M | $0.66 |
| Q2 2024 | $511.4M | $27.2M | $0.63 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
La-Z-Boy Inc. Dividends, Buybacks & Capital Allocation
LZB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for La-Z-Boy Inc. (CIK: 0000057131)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LZB
What is the AI rating for LZB?
La-Z-Boy Inc. (LZB) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LZB's key strengths?
Claude: Strong balance sheet with $306.1M cash, zero long-term debt, and 0.00x debt-to-equity ratio providing financial flexibility. Robust free cash flow generation of $119.0M (7.6% FCF margin) covering capital needs with substantial surplus. ChatGPT: Debt-free capital structure with $306.12M in cash provides strong balance-sheet flexibility. Free cash flow of $118.95M and a 7.6% FCF margin indicate real cash generation.
What are the risks of investing in LZB?
Claude: Declining profitability with net income down 1.4% YoY and diluted EPS down 17.0% YoY despite 3.0% revenue growth indicating margin compression. Low and declining return metrics (ROE 6.6%, ROA 3.3%) suggest inefficient capital deployment and suboptimal operational performance. ChatGPT: Net income fell 1.4% and diluted EPS declined 17.0%, suggesting weaker earnings quality than revenue growth implies. Operating margin of 5.7% and net margin of 4.4% leave limited room for execution missteps or demand softness.
What is LZB's revenue and growth?
La-Z-Boy Inc. reported revenue of $1.6B.
Does LZB pay dividends?
La-Z-Boy Inc. pays dividends, with $28.1M distributed to shareholders in the trailing twelve months.
Where can I find LZB SEC filings?
Official SEC filings for La-Z-Boy Inc. (CIK: 0000057131) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LZB's EPS?
La-Z-Boy Inc. has a diluted EPS of $1.65.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LZB a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, La-Z-Boy Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LZB stock overvalued or undervalued?
Valuation metrics for LZB: ROE of 6.6% (sector avg: 15%), net margin of 4.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LZB stock in 2026?
Our dual AI analysis gives La-Z-Boy Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LZB's free cash flow?
La-Z-Boy Inc.'s operating cash flow is $175.7M, with capital expenditures of $56.7M. FCF margin is 7.6%.
How does LZB compare to other Market stocks?
Vs Default sector averages: Net margin 4.4% (avg: 12%), ROE 6.6% (avg: 15%), current ratio 1.66 (avg: 1.8).