La-Z-Boy vs Somnigroup International
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KIRA’s take AI analyst
I put La-Z-Boy and Somnigroup International side by side, using each one’s latest annual report. Here is what stands out:
- Somnigroup International is the larger business, with $7.5B of revenue in fiscal 2025 against $2.1B for La-Z-Boy, about 3.5 times as much.
- Somnigroup International grew revenue faster (51.6%, against 0.8%).
- Somnigroup International kept more of each dollar of sales as operating profit (10.1% operating margin, against 6.1%).
- Somnigroup International turned more of its sales into free cash flow (8.5% FCF margin, against 6.0%).
- La-Z-Boy earned a higher return on the capital invested in it (13.1%, against 11.7%).
- Investors pay more for each dollar of Somnigroup International’s earnings: a P/E of 24.8x against 15.0x for La-Z-Boy.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
La-Z-Boy
LZB
5/11
Gross marginReturn on capitalPiotroski F-scoreNet debt / EBITDAShare count change
Somnigroup International
SGI
6/11
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on equity
Side by side
Best in the row
| Latest fiscal year | LZB FY26 | SGI FY25 |
|---|---|---|
| Size | ||
| Market cap | $1.2B | $13.2B |
| Revenue | $2.1B | $7.5B |
| Free cash flow | $128M | $633M |
| Net income | $102M | $384M |
| Growth | ||
| Revenue growth | 0.8% | 51.6% |
| 5-year growth | 4.2% | 15.3% |
| Share count change | −2.4% | 17.4% |
| Profitability | ||
| Gross margin | 44.0% | 42.6% |
| Operating margin | 6.1% | 10.1% |
| Net margin | 4.8% | 5.1% |
| FCF margin | 6.0% | 8.5% |
| Return on capital | 13.1% | 11.7% |
| Return on equity | 9.9% | 21.0% |
| Balance sheet | ||
| Net debt | −$301M | $4.6B |
| Net debt / EBITDA | −1.7x | 4.4x |
| Dividends and buybacks | $85.2M | $260M |
| Valuation & quality | ||
| P/E | 15.0x | 24.8x |
| Piotroski F-score | 7 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.