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La-Z-Boy Incorporated (LZB)

Company Dividend Discount ModelIndustry: Furnishings, Fixtures & AppliancesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$42.86 - $95.56$61.93
Multi-Stage$34.45 - $37.63$36.01
Blended Fair Value$48.97
Current Price$32.73
Upside49.61%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS6.86%9.19%0.840.780.720.660.400.600.560.530.500.43
YoY Growth--7.01%9.36%7.76%67.56%-34.07%6.73%6.81%6.56%13.86%25.00%
Dividend Yield--2.18%1.80%2.28%2.38%1.20%2.19%1.78%1.71%1.50%1.44%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)90.42
(-) Cash Dividends Paid (M)36.35
(=) Cash Retained (M)54.07
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)18.0811.306.78
Cash Retained (M)54.0754.0754.07
(-) Cash Required (M)-18.08-11.30-6.78
(=) Excess Retained (M)35.9842.7747.29
(/) Shares Outstanding (M)41.7141.7141.71
(=) Excess Retained per Share0.861.031.13
LTM Dividend per Share0.870.870.87
(+) Excess Retained per Share0.861.031.13
(=) Adjusted Dividend1.731.902.01
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.86%5.86%6.86%
Fair Value$42.86$61.93$95.56
Upside / Downside30.96%89.20%191.96%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)90.4295.72101.32107.26113.54120.18123.79
Payout Ratio40.20%50.16%60.12%70.08%80.04%90.00%92.50%
Projected Dividends (M)36.3548.0160.9275.1790.88108.17114.51

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.86%5.86%6.86%
Year 1 PV (M)43.5944.0144.43
Year 2 PV (M)50.2251.1852.15
Year 3 PV (M)56.2657.8959.54
Year 4 PV (M)61.7664.1566.61
Year 5 PV (M)66.7469.9973.35
PV of Terminal Value (M)1,158.631,214.941,273.42
Equity Value (M)1,437.201,502.151,569.50
Shares Outstanding (M)41.7141.7141.71
Fair Value$34.45$36.01$37.63
Upside / Downside5.27%10.02%14.96%

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