One-glance verdict
Undervalued
$44.34 our estimate vs market $41.19
Wall Street consensus: $46.00 (3.8% higher than our fair-value estimate)
7% below our estimate, below the bear case
Fundamentals snapshot
La-Z-Boy Incorporated
LZB · NYQ · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$41.19
52-week range
$29.03 - $44.90
Market cap
$1.65B
Balance sheet
Healthy
284.68x Strong cushion
Net debt $255.52M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.8% last year.
- Reward Returns 9.8% on equity, ahead of 66% of its peers.
- Risk Net debt grew 154.6% over 3 years.
- Risk Stock trades 31.5% above its 5-year average P/E.
What this company does
La-Z-Boy Incorporated
La-Z-Boy makes furniture, known for its comfy recliners and sofas, and gets its revenue (the money it brings in from sales) from two main areas. It primarily operates a wholesale business (selling its furniture in bulk to other stores), but it also sells directly to customers through its own network of La-Z-Boy stores and its online brand, Joybird. This strategy allows the company to reach customers whether they are shopping at a local furniture dealer or a dedicated La-Z-Boy location.
How the company got here
La-Z-Boy started in 1927 when two cousins in Monroe, Michigan, invented a reclining porch chair out of orange crates. They soon upholstered it for year-round use, and the iconic La-Z-Boy recliner was born. For decades, the company focused almost exclusively on recliners, but in the 1960s and 80s, it expanded into a full line of home furnishings like sofas and chairs. A key turning point was the acquisition of LADD Furniture in 2000, which significantly grew its size and brand portfolio. Today, the company has evolved from a single-product inventor into a major global furniture manufacturer and retailer.
What it actually does
La-Z-Boy is a well-known American company that makes and sells furniture for the home. While famous for its recliners, the company offers a wide variety of other furniture, including sofas, loveseats, sectionals, chairs, and ottomans. It also sells wooden furniture, known as casegoods, such as bedroom and dining room sets. You can find its products in La-Z-Boy branded stores, other independent furniture retailers, and online.
Wholesale
This is the manufacturing and supply part of the company, representing a large portion of its business. It involves making upholstered furniture in its North American factories and importing both upholstered and wooden furniture. This segment doesn't sell directly to everyday shoppers; instead, it sells in bulk to retail stores. These customers include independently-owned La-Z-Boy Furniture Galleries, as well as other furniture stores that have dedicated La-Z-Boy sections or simply carry their products.
Retail
This segment is how the company sells directly to end consumers (the people who use the furniture in their homes). It consists of over 190 company-owned La-Z-Boy Furniture Galleries stores across the country. These stores sell a wide range of La-Z-Boy products, from upholstered furniture to wooden furniture and other home accessories. This direct-to-consumer approach gives the company more control over the customer experience, from the store layout and design advice to the final sale.
Joybird
Joybird is a newer, distinct brand that La-Z-Boy acquired, which operates primarily online and through a small number of its own showrooms. It focuses on modern and mid-century style furniture and targets customers who want more customization, offering a wide variety of fabrics and colors. While it's a smaller part of the overall company, it's a key piece of the strategy to reach a different and often younger customer than the traditional La-Z-Boy brand. Joybird operates as an omnichannel retailer (selling both online and in physical stores) and manufactures most of its products in North America.
What management is betting on now
The company's current strategy, which it calls its "Century Vision," focuses on growing beyond its reputation for just recliners. A major priority is expanding its direct relationship with customers by growing its network of company-owned retail stores and scaling the Joybird brand. Management is also focused on improving its supply chain (the process of making and delivering furniture) to make it faster and more efficient. Finally, the company is committed to sustainability, with goals to reduce its carbon footprint and use more responsibly sourced materials in its products.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$36.70M
FY2025 Q2
$-1.21M
FY2025 Q3
$38.25M
FY2025 Q4
$39.26M
FY2026 Q1
$17.83M
FY2026 Q2
$29.57M
FY2026 Q3
$71.56M
FY2026 Q4
$8.85M
Revenue
$570.34M
Net income
$33.27M
Diluted EPS
0.81
Operating cash flow
$28.42M
Free cash flow
$8.85M
Fetching…
Sources
Revenue
$541.59M
Net income
$21.65M
Diluted EPS
0.52
Operating cash flow
$89.37M
Free cash flow
$71.56M
Fetching…
Sources
Revenue
$522.48M
Net income
$28.86M
Diluted EPS
0.70
Operating cash flow
$50.03M
Free cash flow
$29.57M
Fetching…
Sources
Revenue
$492.23M
Net income
$18.20M
Diluted EPS
0.44
Operating cash flow
$36.29M
Free cash flow
$17.83M
Fetching…
Sources
Revenue
$570.87M
Net income
$14.93M
Diluted EPS
0.35
Operating cash flow
$62.00M
Free cash flow
$39.26M
Fetching…
Sources
Revenue
$521.78M
Net income
$28.43M
Diluted EPS
0.68
Operating cash flow
$57.02M
Free cash flow
$38.25M
Fetching…
Sources
Revenue
$521.03M
Net income
$30.04M
Diluted EPS
0.71
Operating cash flow
$15.94M
Free cash flow
$-1.21M
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Sources
Revenue
$495.53M
Net income
$26.16M
Diluted EPS
0.61
Operating cash flow
$52.32M
Free cash flow
$36.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $44.34 vs current price $41.19
Wall Street consensus is the average analyst price target: $46.00 (3.8% higher than our fair-value estimate).
Our most-likely fair value is $44.34 a share — about 7.6% above today's price of $41.19, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $255.5M. Interest coverage 284.7x.
Net debt
$255.52M
Interest coverage
284.68x
La-Z-Boy Incorporated's profit covers its interest bill about 284.7 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
LZB
BASELINE
La-Z-Boy Incorporated
Total debt $564.29M Interest coverage 284.68x This is the baseline the peer rows are being compared against.
Total debt $120.99M Interest coverage 256.51x -10% vs LZB Has roughly the same debt cushion as LZB.
Total debt $219.24M Interest coverage 4.13x -99% vs LZB Carries about 68.9x less debt cushion than LZB.
Total debt $53.90M Interest coverage 446.40x +57% vs LZB Carries about 1.6x more debt cushion than LZB.
Total debt $87.82M Interest coverage 160.10x -44% vs LZB Carries about 1.8x less debt cushion than LZB.
Total debt $23.57M Interest coverage -1.16x -100% vs LZB This peer has almost no interest-payment cushion compared with LZB.
What you should know
The case for and against LZB
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.8% last year.
-
Returns 9.8% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 154.6% over 3 years.
-
Stock trades 31.5% above its 5-year average P/E.
-
Insider ownership is only 2.7% (peer median: 14.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.68x
Forward P/E
12.47x
P/B
1.58x
P/S
0.77x
EV/EBITDA
9.33x
PEG ratio
1.24x
Profitability
How much profit each dollar creates
Gross margin
44.5%
Operating margin
11.7%
Net margin
4.8%
ROE
9.8%
ROA
4.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.53x
Current ratio
1.80x
Quick ratio
1.10x
Total debt
$564.29M
Total cash
$308.76M
Growth
How the business has been compounding
Revenue TTM
$2.13B
Revenue 5Y CAGR
-2.5%
EPS TTM
2.47
EPS 5Y CAGR
-10.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$204.11M
Free CF TTM
$127.80M
FCF margin
6.0%
Dividend
Shareholder payout
Yield
2.4%
Payout ratio
37.4%
Last ex-div date
2026-06-02