La Z Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:4em;'>LZ</div>
LZB -- USA Stock  

USD 30.62  0.78  2.48%

La Z Boy is scheduled to announce its earnings today. The next earnings report is expected on the 18th of November 2020. La Z Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 8,177. The current year Revenue Per Employee is expected to grow to about 185.5 K, whereas Average Assets are forecasted to decline to about 1.2 B. As many millenniums are trying to avoid consumer cyclical space, it makes sense to go over La Z Boy a little further and try to understand its current market patterns.
Published over a month ago
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Chances of La Z (NYSE:LZB) to slip in September
The company has 409.54 M in debt with debt to equity (D/E) ratio of 0.57, which is OK given its current industry classification. La Z Boy has a current ratio of 1.75, which is typical for the industry and considered as normal. On a scale of 0 to 100, La Z holds a performance score of 14. The company owns a Beta (Systematic Risk) of 1.324, which conveys a somewhat significant risk relative to the market. Let's try to break down what La Z's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, La Z will likely underperform. Although it is vital to follow La Z Boy existing price patterns, it is good to be conservative about what you can do with the information regarding equity price patterns. The approach towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-eight technical indicators for La Z, which you can use to evaluate the performance of the firm. Please exercises La Z Boy potential upside, rate of daily change, and the relationship between the sortino ratio and skewness to make a quick decision on whether La Z Boy current price history will revert.
La Z financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of La Z, including all of La Z's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of La Z assets, the company is considered highly leveraged. Understanding the composition and structure of overall La Z debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding La Z Total Debt

La Z Boy liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. La Z Boy has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on La Z balance sheet include debt obligations and money owed to different La Z vendors, workers, and loan providers. Below is the chart of La Z main long-term debt accounts currently reported on its balance sheet.
You can use La Z Boy financial leverage analysis tool to get a better grip on understanding its financial position

How important is La Z's Liquidity

La Z financial leverage refers to using borrowed capital as a funding source to finance La Z Boy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. La Z financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between La Z's total debt and its cash.

Acquisition by Rebecca OGrady of 3274 shares of La Z subject to Rule 16b-3

Legal trades by La Z insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
La Z insider trading alert for grant of restricted stock units by Rebecca OGrady, the corporate stakeholder, on 8th of September 2020. This event was filed by Lazboy Inc with SEC on 2020-09-08. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down La Z Indicators

The current price rise of La Z Boy may encourage investors to take a closer look at the firm as it closed today at a share price of 31.96 on 521,472 in trading volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.59. The current volatility is consistent with the ongoing market swings in July 2020 as well as with La Z Boy unsystematic, company-specific events.

Liabilities Breakdown

267.2 M
Current Liabilities
238.8 M
Long-Term Liabilities
Total Liabilities506 Million
Current Liabilities267.16 Million
Long-Term Liabilities238.84 Million

Will La Z slip impact its fundamentals?

Semi deviation is down to 2.32. It may suggest a possible volatility slip. La Z Boy currently demonstrates below-verage downside deviation. It has Information Ratio of 0.13 and Jensen Alpha of 0.29. However, we do advice investors to further question La Z Boy expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on La Z Investment

Whereas some other companies under the furnishings, fixtures & appliances industry are still a bit expensive, La Z may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to trade some or all of your La Z holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to La Z.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of La Z Boy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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