Is LZB a high-quality business?

AlphaMadera's AlphaQuality grade scores La-Z-Boy Incorporated on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how LZB compares to a Buffett-style quality bar.

What is La-Z-Boy Incorporated's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to LZB based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes LZB a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

LZB - La-Z-Boy Incorporated

Price: -- -- | CONSENSUS: Buy DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C+ 57.4 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

D+ 42.5

5yr Avg ROIC 8.0% 50/100
Operating Margin Trend -0.80 pp/yr 25/100

Capital Efficiency

Weight: 15%

B+ 75.0

5yr Avg ROE 11.9% 70/100
5yr Share-Count CAGR -1.7% 85/100

Growth Quality

Weight: 15%

F 20.4

5yr Revenue CAGR -2.5% 15/100
5yr EPS CAGR -7.6% 5/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

B- 63.5

5yr FCF Margin 4.5% 47/100
5yr FCF/NI Conversion 0.83x 83/100

Balance Sheet

Weight: 20%

A- 80.6

Net Debt / EBITDA 1.87x 72/100
Interest Coverage (EBIT/Int) 266.01x 100/100
Altman Z-Score 2.86 73/100

Stability

Weight: 15%

C+ 59.2

EPS Volatility (σ/μ) 0.32 54/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

4 of 4 gurus held; 1 new buy; 2 added; 1 trimmed.

Holders: 4 +2
Avg Δ position: +93.4%
New buys: 1
Full exits: 0

Wood new
Greenblatt increased +200%
Cooperman decreased -13%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.