One-glance verdict
Undervalued
$41.81 our estimate vs market $30.66
Wall Street consensus: $41.00 (-1.9% lower than our fair-value estimate)
27% below our estimate, below the bear case
Fundamentals snapshot
La-Z-Boy Incorporated
LZB · NYQ · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$30.66
52-week range
$29.03 - $44.90
Market cap
$1.23B
Balance sheet
Healthy
284.68x Strong cushion
Net debt $268.85M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 8.0% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 154.6% over 3 years.
- Risk Stock trades 22.7% above its 5-year average P/E.
What this company does
La-Z-Boy Incorporated
La-Z-Boy is a furniture company famous for its recliners, but it also makes and sells a full range of home furniture like sofas and tables. It primarily makes money by selling to other stores in large orders, which is its wholesale business, and by selling directly to shoppers in its own company-owned stores. Having these different sales channels (pathways to the customer) allows the company to reach more buyers and can provide a cushion if sales in one area slow down.
How the company got here
La-Z-Boy was started by two cousins in Monroe, Michigan, in 1927 who invented a reclining porch chair. They held a contest to name their creation, and "La-Z-Boy" was the winner. The company grew from that single famous chair, officially becoming the La-Z-Boy Chair Company in 1941 and expanding into sofas and other furniture in the 1960s. A key part of its growth has been acquiring other furniture companies to offer a wider variety of products and selling through a large network of dedicated stores. In 2018, it bought Joybird, a company that primarily sells modern-style furniture online, to reach younger customers.
What it actually does
Most people know La-Z-Boy for its famous reclining armchairs, but the company makes and sells a wide range of home furniture. This includes sofas, loveseats, and chairs that don't recline, as well as wooden furniture like bedroom sets and dining room tables, which are known as casegoods. The company operates its own chain of retail stores called La-Z-Boy Furniture Galleries and also sells its products through other independent furniture stores. It also owns the Joybird brand, which sells more modern-looking furniture directly to customers online.
Wholesale
This is the largest part of La-Z-Boy's business, where it manufactures and imports furniture to sell to retail stores. These customers include both independently-owned furniture stores and La-Z-Boy's own corporate-owned stores. The products made in this segment include the classic La-Z-Boy recliners and sofas, as well as furniture under other brand names like England. This part of the business is the foundation of the company, making the products that are sold across the country.
Retail
This segment involves selling furniture directly to the end consumer through the company's own network of La-Z-Boy Furniture Galleries stores. These stores sell a wide variety of La-Z-Boy products, from upholstered furniture to wooden casegoods and other home accessories. This segment also includes the online furniture brand Joybird, which operates its own website and a few small physical stores. By owning its own stores, La-Z-Boy has more control over the customer experience and brand presentation.
What management is betting on now
The company is focused on a long-term plan it calls its "Century Vision," which aims to grow the company and improve its profitability (the ability to make a profit from its sales) by its 100th anniversary in 2027. A major part of this strategy is to expand its reach directly to customers by opening more of its own retail stores and growing the online Joybird brand. They are also working to make their supply chain (the entire process of making and delivering products) faster and more efficient. The goal is to be seen as a seller of furniture for the entire home, not just as the maker of the famous recliner.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
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
FY2027 Q1
$-7.64M
Revenue
$475.69M
Net income
$-2.29M
Diluted EPS
-0.06
Operating cash flow
$15.65M
Free cash flow
$-7.64M
Fetching…
Sources
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
Fetching…
Sources
Is it cheap or expensive?
Fair value $41.81 vs current price $30.66
Wall Street consensus is the average analyst price target: $41.00 (-1.9% lower than our fair-value estimate).
Our most-likely fair value is $41.81 a share — about 36.3% above today's price of $30.66, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $268.9M. Interest coverage 284.7x.
Net debt
$268.85M
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 $541.51M Interest coverage 284.68x This is the baseline the peer rows are being compared against.
Total debt $120.69M Interest coverage 203.19x -29% vs LZB Carries about 1.4x less debt cushion than LZB.
Total debt $230.71M Interest coverage 4.13x -99% vs LZB Carries about 68.9x less debt cushion than LZB.
Total debt $51.90M Interest coverage 1,934.09x +579% vs LZB Carries about 6.8x 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
-
Returns 8.0% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 15.6x P/E vs peer median 17.1x (8.7% cheaper).
Risks
-
Net debt grew 154.6% over 3 years.
-
Stock trades 22.7% above its 5-year average P/E.
-
Insider ownership is only 2.8% (peer median: 14.8%).
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)
15.57x
Forward P/E
10.90x
P/B
1.21x
P/S
0.58x
EV/EBITDA
7.83x
PEG ratio
1.17x
Profitability
How much profit each dollar creates
Gross margin
45.2%
Operating margin
2.7%
Net margin
3.9%
ROE
8.0%
ROA
4.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.53x
Current ratio
1.67x
Quick ratio
0.97x
Total debt
$541.51M
Total cash
$272.66M
Growth
How the business has been compounding
Revenue TTM
$2.11B
Revenue 5Y CAGR
-2.5%
EPS TTM
1.97
EPS 5Y CAGR
-10.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$183.46M
Free CF TTM
$127.80M
FCF margin
6.1%
Dividend
Shareholder payout
Yield
3.1%
Payout ratio
48.0%
Last ex-div date
2026-09-03