LAZARD INC (NYSE:LAZ) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Discover LAZARD INC (NYSE:LAZ), an undervalued stock highlighted by our stock screener. LAZ showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

How do we evaluate the Valuation for LAZ?

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. LAZ has achieved a 7 out of 10:

• Compared to an average S&P500 Price/Earnings ratio of 28.18, LAZ is valued a bit cheaper.
• Based on the Price/Forward Earnings ratio of 10.38, the valuation of LAZ can be described as reasonable.
• LAZ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LAZ is cheaper than 65.80% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of LAZ to the average of the S&P500 Index (20.81), we can say LAZ is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, LAZ is valued cheaply inside the industry as 89.61% of the companies are valued more expensively.
• 83.98% of the companies in the same industry are more expensive than LAZ, based on the Price/Free Cash Flow ratio.
• The decent profitability rating of LAZ may justify a higher PE ratio.
• LAZ's earnings are expected to grow with 25.32% in the coming years. This may justify a more expensive valuation.

Exploring LAZ's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, LAZ has achieved a 6:

• Looking at the Return On Assets, with a value of 5.70%, LAZ is in the better half of the industry, outperforming 70.56% of the companies in the same industry.
• The Return On Equity of LAZ (42.91%) is better than 97.84% of its industry peers.
• LAZ has a Return On Invested Capital of 10.37%. This is amongst the best in the industry. LAZ outperforms 85.28% of its industry peers.
• The 3 year average ROIC (6.49%) for LAZ is below the current ROIC(10.37%), indicating increased profibility in the last year.
• LAZ's Gross Margin of 93.82% is amongst the best of the industry. LAZ outperforms 93.94% of its industry peers.

Understanding LAZ's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of LAZ, the assigned 5 reflects its health status:

• LAZ has a Altman-Z score of 2.10. This is in the better half of the industry: LAZ outperforms 71.00% of its industry peers.
• The Debt to FCF ratio of LAZ is 2.98, which is a good value as it means it would take LAZ, 2.98 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of LAZ (2.98) is better than 76.62% of its industry peers.
• Looking at the Current ratio, with a value of 1.35, LAZ is in the better half of the industry, outperforming 61.04% of the companies in the same industry.
• LAZ's Quick ratio of 1.35 is fine compared to the rest of the industry. LAZ outperforms 61.04% of its industry peers.

A Closer Look at Growth for LAZ

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. LAZ boasts a 6 out of 10:

• LAZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.94%, which is quite impressive.
• The Earnings Per Share is expected to grow by 25.32% on average over the next years. This is a very strong growth
• Based on estimates for the next years, LAZ will show a quite strong growth in Revenue. The Revenue will grow by 8.35% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of LAZ for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.