Important note

This AI stock analysis for La-Z-Boy is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

La-Z-Boy - AI Stock Analysis

Analysis generated June 17, 2024

La Z Boy Incorporated is a prominent American manufacturer of home furniture, especially known for its recliners. Founded in 1927, the company has evolved to offer a wide range of products including sofas, stationary chairs, lift chairs, and sleeper sofas. Headquartered in Monroe, Michigan, La Z Boy operates manufacturing plants in multiple locations and has a vast retail network across North America and beyond.

The company focuses on craftsmanship, quality, and innovative designs, which have contributed to its strong brand reputation. La Z Boy's product line-up caters to both retail consumers and business clients, making it a significant player in the furniture industry.

Fundamental Analysis

La Z Boy's recent financial performance raises several red flags. Revenue for the last quarter was $500 million, a decrease of 2.16% compared to the quarter before. Even more concerning is the year-over-year decrease of 12.63%. These numbers indicate declining sales, which could be a sign of decreasing demand or increasing competition in the market.

Despite the revenue drop, La Z Boy recorded a net income of $29 million last quarter, indicating a 5.30% increase compared to the previous quarter. This is a positive sign of operational efficiency and cost management. However, the year-over-year net income declined by 9.73%, highlighting potential long-term issues.

The EBITDA was $33 million last quarter, a 3.10% decrease from the previous quarter and a significant 23.85% decrease from the same quarter last year. These figures suggest operational challenges affecting the company's profitability. The current Price-to-Earnings (P/E) ratio is 12.49, relatively average, suggesting that the stock is neither undervalued nor overvalued.

Technical Analysis

The stock price of La Z Boy is currently $34.07, reflecting a decrease of 5.70% compared to a month ago. While this short-term downtrend is concerning, the stock has appreciated by 28.13% over the past year, indicating a strong long-term performance.

The technical indicators point towards a bearish trend. The current Simple Moving Average (SMA10) is 34.45, which is lower than the previous SMA10 of 34.57. This negative crossover suggests a possible continuation of the downtrend. Moreover, the Relative Strength Index (RSI) is at 77.3, indicating an overbought condition that could lead to further price declines.

Alternative Data Analysis

La Z Boy's alternative data metrics also provide a mixed picture. The number of job postings has reduced by 8% to 210 open positions, possibly indicating cost-cutting measures. Employee sentiment remains neutral, giving little indication of change within the company.

On the customer acquisition front, the company's estimated number of webpage visitors is down by 22% to 1.5 million over the last couple of months. This decline is troubling as it may signal waning consumer interest. The lack of growth in mobile app downloads further supports this concern.

Customer engagement shows a slight divergence; La Z Boy's Instagram followers increased by 17% to 58,000, indicating growing interest in the brand on this platform. However, the Twitter followers remain stagnant at 14,000, suggesting no significant change in overall social media engagement.

AltIndex's AI score for La Z Boy is 43, suggesting a ‘Hold’ recommendation for the stock. This AI score integrates multiple data points including fundamentals, technical indicators, and alternative data.

Conclusion and Recommendation

Based on the analysis of La Z Boy's fundamentals, technical indicators, and alternative data, the stock presents a mixed, cautiously optimistic outlook. While short-term financial metrics and technical indicators point to potential challenges, long-term performance, in particular the one-year stock price increase, suggests resilience.

Therefore, the recommendation is a ‘Hold’. Investors should closely monitor the company’s efforts to manage costs, improve revenue streams, and engage customers. The neutral to slightly bearish trends in multiple indicators suggest that La Z Boy may face some short-term volatility, but its established brand and long-term growth potential offer a counterbalance.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.