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CS DISCO INC (LAW) Stock Fundamental Analysis

NYSE:LAW - New York Stock Exchange, Inc. - US1263271058 - Common Stock - Currency: USD

3.7  +0.09 (+2.49%)

After market: 3.7 0 (0%)

Fundamental Rating

3

LAW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. The financial health of LAW is average, but there are quite some concerns on its profitability. LAW is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

LAW had negative earnings in the past year.
LAW had a negative operating cash flow in the past year.
In the past 5 years LAW always reported negative net income.
In the past 5 years LAW always reported negative operating cash flow.
LAW Yearly Net Income VS EBIT VS OCF VS FCFLAW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 -20M -40M -60M

1.2 Ratios

With a Return On Assets value of -30.93%, LAW is not doing good in the industry: 74.02% of the companies in the same industry are doing better.
LAW has a Return On Equity of -37.81%. This is in the lower half of the industry: LAW underperforms 63.70% of its industry peers.
Industry RankSector Rank
ROA -30.93%
ROE -37.81%
ROIC N/A
ROA(3y)-25.59%
ROA(5y)-22.86%
ROE(3y)-30.17%
ROE(5y)-26.9%
ROIC(3y)N/A
ROIC(5y)N/A
LAW Yearly ROA, ROE, ROICLAW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 -20 -40 -60 -80 -100

1.3 Margins

The Gross Margin of LAW (74.17%) is better than 65.84% of its industry peers.
LAW's Gross Margin has been stable in the last couple of years.
LAW does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 74.17%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.63%
GM growth 5Y1.12%
LAW Yearly Profit, Operating, Gross MarginsLAW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 -60

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5

2. Health

2.1 Basic Checks

LAW does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LAW has less shares outstanding
The number of shares outstanding for LAW has been increased compared to 5 years ago.
Compared to 1 year ago, LAW has a worse debt to assets ratio.
LAW Yearly Shares OutstandingLAW Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 20M 40M 60M
LAW Yearly Total Debt VS Total AssetsLAW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

2.2 Solvency

An Altman-Z score of 2.52 indicates that LAW is not a great score, but indicates only limited risk for bankruptcy at the moment.
LAW has a Altman-Z score of 2.52. This is comparable to the rest of the industry: LAW outperforms 57.30% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that LAW is not too dependend on debt financing.
LAW has a better Debt to Equity ratio (0.00) than 67.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 2.52
ROIC/WACCN/A
WACC10.59%
LAW Yearly LT Debt VS Equity VS FCFLAW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 100M 200M

2.3 Liquidity

LAW has a Current Ratio of 6.11. This indicates that LAW is financially healthy and has no problem in meeting its short term obligations.
LAW's Current ratio of 6.11 is amongst the best of the industry. LAW outperforms 90.39% of its industry peers.
A Quick Ratio of 6.11 indicates that LAW has no problem at all paying its short term obligations.
The Quick ratio of LAW (6.11) is better than 90.75% of its industry peers.
Industry RankSector Rank
Current Ratio 6.11
Quick Ratio 6.11
LAW Yearly Current Assets VS Current LiabilitesLAW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

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5

3. Growth

3.1 Past

LAW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.32%, which is quite impressive.
LAW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.89%.
LAW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.41% yearly.
EPS 1Y (TTM)26.32%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-600%
Revenue 1Y (TTM)4.89%
Revenue growth 3Y8.21%
Revenue growth 5Y24.41%
Sales Q2Q%3.52%

3.2 Future

LAW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.22% yearly.
Based on estimates for the next years, LAW will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y-0.82%
EPS Next 2Y23.15%
EPS Next 3Y28.22%
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y4.97%
Revenue Next 3Y6.11%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
LAW Yearly Revenue VS EstimatesLAW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M
LAW Yearly EPS VS EstimatesLAW Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 -0.2 -0.4 -0.6 -0.8

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1

4. Valuation

4.1 Price/Earnings Ratio

LAW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for LAW. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
LAW Price Earnings VS Forward Price EarningsLAW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
LAW Per share dataLAW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5 2

4.3 Compensation for Growth

LAW's earnings are expected to grow with 28.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y23.15%
EPS Next 3Y28.22%

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0

5. Dividend

5.1 Amount

No dividends for LAW!.
Industry RankSector Rank
Dividend Yield N/A

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CS DISCO INC

NYSE:LAW (5/2/2025, 8:06:24 PM)

After market: 3.7 0 (0%)

3.7

+0.09 (+2.49%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners68.02%
Inst Owner Change0.11%
Ins Owners4.67%
Ins Owner Change8.27%
Market Cap223.41M
Analysts50.77
Price Target6.83 (84.59%)
Short Float %0.88%
Short Ratio3.38
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.9%
Min EPS beat(2)35.33%
Max EPS beat(2)36.46%
EPS beat(4)4
Avg EPS beat(4)31.03%
Min EPS beat(4)23.56%
Max EPS beat(4)36.46%
EPS beat(8)8
Avg EPS beat(8)41.57%
EPS beat(12)12
Avg EPS beat(12)36.59%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)1.2%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)1.2%
Revenue beat(8)6
Avg Revenue beat(8)1.36%
Revenue beat(12)9
Avg Revenue beat(12)2.36%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.9%
PT rev (3m)-7.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)1.18%
EPS NY rev (3m)-3.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)0.11%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.54
P/FCF N/A
P/OCF N/A
P/B 1.51
P/tB 1.58
EV/EBITDA N/A
EPS(TTM)-0.28
EYN/A
EPS(NY)-0.28
Fwd EYN/A
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)-0.14
OCFYN/A
SpS2.4
BVpS2.44
TBVpS2.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -30.93%
ROE -37.81%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 74.17%
FCFM N/A
ROA(3y)-25.59%
ROA(5y)-22.86%
ROE(3y)-30.17%
ROE(5y)-26.9%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.63%
GM growth 5Y1.12%
F-Score4
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 70.84%
Cap/Sales 1.92%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 6.11
Quick Ratio 6.11
Altman-Z 2.52
F-Score4
WACC10.59%
ROIC/WACCN/A
Cap/Depr(3y)223.92%
Cap/Depr(5y)195.05%
Cap/Sales(3y)6.27%
Cap/Sales(5y)4.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.32%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-600%
EPS Next Y-0.82%
EPS Next 2Y23.15%
EPS Next 3Y28.22%
EPS Next 5YN/A
Revenue 1Y (TTM)4.89%
Revenue growth 3Y8.21%
Revenue growth 5Y24.41%
Sales Q2Q%3.52%
Revenue Next Year4.76%
Revenue Next 2Y4.97%
Revenue Next 3Y6.11%
Revenue Next 5YN/A
EBIT growth 1Y3.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year31.19%
EBIT Next 3Y27.25%
EBIT Next 5YN/A
FCF growth 1Y74.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y65.73%
OCF growth 3YN/A
OCF growth 5YN/A