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CS DISCO INC (LAW) Stock Fundamental Analysis

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

4.17  +0.07 (+1.71%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to LAW. LAW was compared to 282 industry peers in the Software industry. LAW scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, LAW is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year LAW has reported negative net income.
LAW had a negative operating cash flow in the past year.
LAW had negative earnings in each of the past 5 years.
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

LAW's Return On Assets of -33.68% is on the low side compared to the rest of the industry. LAW is outperformed by 76.60% of its industry peers.
With a Return On Equity value of -39.80%, LAW is not doing good in the industry: 63.83% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -33.68%
ROE -39.8%
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 (73.91%) is better than 63.12% of its industry peers.
In the last couple of years the Gross Margin of LAW has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for LAW so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 73.91%
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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6

2. Health

2.1 Basic Checks

LAW does not have a ROIC to compare to the WACC, probably because it is not profitable.
LAW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LAW has more shares outstanding
The debt/assets ratio for LAW is higher compared to a year ago.
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 4.07 indicates that LAW is not in any danger for bankruptcy at the moment.
LAW has a Altman-Z score of 4.07. This is in the better half of the industry: LAW outperforms 65.96% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that LAW is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.00, LAW is doing good in the industry, outperforming 69.50% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 4.07
ROIC/WACCN/A
WACC10.25%
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

A Current Ratio of 7.50 indicates that LAW has no problem at all paying its short term obligations.
LAW's Current ratio of 7.50 is amongst the best of the industry. LAW outperforms 92.55% of its industry peers.
A Quick Ratio of 7.50 indicates that LAW has no problem at all paying its short term obligations.
LAW has a better Quick ratio (7.50) than 92.55% of its industry peers.
Industry RankSector Rank
Current Ratio 7.5
Quick Ratio 7.5
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 slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.69%.
The Revenue has been growing slightly by 3.84% in the past year.
Measured over the past years, LAW shows a very strong growth in Revenue. The Revenue has been growing by 24.41% on average per year.
EPS 1Y (TTM)-7.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)3.84%
Revenue growth 3Y8.21%
Revenue growth 5Y24.41%
Sales Q2Q%3.04%

3.2 Future

The Earnings Per Share is expected to grow by 17.04% on average over the next years. This is quite good.
LAW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.70% yearly.
EPS Next Y-0.21%
EPS Next 2Y18.68%
EPS Next 3Y17.04%
EPS Next 5YN/A
Revenue Next Year5.76%
Revenue Next 2Y6.11%
Revenue Next 3Y8.7%
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 -0.2 -0.4 -0.6 -0.8

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0

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for LAW. In the last year negative earnings were reported.
Also next year LAW is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
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 20 -20 40 60

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 17.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.68%
EPS Next 3Y17.04%

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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 (8/5/2025, 2:15:27 PM)

4.17

+0.07 (+1.71%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners66.83%
Inst Owner Change0.11%
Ins Owners3.47%
Ins Owner Change7.29%
Market Cap253.58M
Analysts50.77
Price Target6.2 (48.68%)
Short Float %0.84%
Short Ratio2.37
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)32.72%
Min EPS beat(2)30.11%
Max EPS beat(2)35.33%
EPS beat(4)4
Avg EPS beat(4)31.37%
Min EPS beat(4)23.56%
Max EPS beat(4)36.46%
EPS beat(8)8
Avg EPS beat(8)42.25%
EPS beat(12)12
Avg EPS beat(12)36.92%
EPS beat(16)16
Avg EPS beat(16)33.63%
Revenue beat(2)2
Avg Revenue beat(2)0.83%
Min Revenue beat(2)0.47%
Max Revenue beat(2)1.2%
Revenue beat(4)3
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)1.2%
Revenue beat(8)6
Avg Revenue beat(8)0.92%
Revenue beat(12)9
Avg Revenue beat(12)1.43%
Revenue beat(16)13
Avg Revenue beat(16)3.8%
PT rev (1m)0%
PT rev (3m)-9.25%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-1%
EPS NY rev (1m)-4.24%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.96%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.74
P/FCF N/A
P/OCF N/A
P/B 1.78
P/tB 1.87
EV/EBITDA N/A
EPS(TTM)-0.28
EYN/A
EPS(NY)-0.17
Fwd EYN/A
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)-0.2
OCFYN/A
SpS2.4
BVpS2.34
TBVpS2.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -33.68%
ROE -39.8%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 73.91%
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 Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 69.3%
Cap/Sales 1.79%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 7.5
Quick Ratio 7.5
Altman-Z 4.07
F-Score4
WACC10.25%
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)-7.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-0.21%
EPS Next 2Y18.68%
EPS Next 3Y17.04%
EPS Next 5YN/A
Revenue 1Y (TTM)3.84%
Revenue growth 3Y8.21%
Revenue growth 5Y24.41%
Sales Q2Q%3.04%
Revenue Next Year5.76%
Revenue Next 2Y6.11%
Revenue Next 3Y8.7%
Revenue Next 5YN/A
EBIT growth 1Y-21.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.5%
EBIT Next 3Y27.25%
EBIT Next 5YN/A
FCF growth 1Y73.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y75.87%
OCF growth 3YN/A
OCF growth 5YN/A