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La-Z-Boy Incorporated (LZB)

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

Valuation Snapshot

Stable Growth$43.05 - $96.33$62.27
Multi-Stage$34.56 - $37.74$36.12
Blended Fair Value$49.20
Current Price$32.73
Upside50.32%
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 Rate9.08%9.08%9.08%
Growth Rate4.86%5.86%6.86%
Fair Value$43.05$62.27$96.33
Upside / Downside31.52%90.26%194.32%

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 Rate9.08%9.08%9.08%
Growth Rate4.86%5.86%6.86%
Year 1 PV (M)43.6044.0244.43
Year 2 PV (M)50.2351.2052.17
Year 3 PV (M)56.2957.9159.57
Year 4 PV (M)61.8064.1966.65
Year 5 PV (M)66.8070.0473.41
PV of Terminal Value (M)1,163.021,219.551,278.25
Equity Value (M)1,441.741,506.911,574.49
Shares Outstanding (M)41.7141.7141.71
Fair Value$34.56$36.12$37.74
Upside / Downside5.60%10.37%15.32%

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