LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis
USA - NASDAQ:LZ - US52466B1035 - Common Stock
10.89 USD
+0.29 (+2.74%)
11.05 USD
+0.16 (+1.47%)
We assign a fundamental rating of 5 out of 10 to LZ. LZ was compared to 82 industry peers in the Professional Services industry. LZ has an average financial health and profitability rating. LZ is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, LZ could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year LZ was profitable.
LZ had a positive operating cash flow in the past year.
In multiple years LZ reported negative net income over the last 5 years.
LZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LZ has a Return On Assets of 5.30%. This is in the better half of the industry: LZ outperforms 60.98% of its industry peers.
LZ has a Return On Equity of 14.82%. This is in the better half of the industry: LZ outperforms 65.85% of its industry peers.
The Return On Invested Capital of LZ (9.86%) is better than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 14.82% | ||
| ROIC | 9.86% |
ROA(3y)-0.29%
ROA(5y)-4.65%
ROE(3y)2.06%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LZ's Profit Margin of 4.07% is in line compared to the rest of the industry. LZ outperforms 54.88% of its industry peers.
In the last couple of years the Profit Margin of LZ has grown nicely.
LZ's Operating Margin of 3.83% is in line compared to the rest of the industry. LZ outperforms 45.12% of its industry peers.
In the last couple of years the Operating Margin of LZ has declined.
LZ has a better Gross Margin (65.71%) than 76.83% of its industry peers.
LZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 65.71% |
OM growth 3YN/A
OM growth 5Y-16.69%
PM growth 3YN/A
PM growth 5Y27.15%
GM growth 3Y-1.14%
GM growth 5Y-0.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LZ is creating some value.
Compared to 1 year ago, LZ has less shares outstanding
Compared to 5 years ago, LZ has less shares outstanding
The debt/assets ratio for LZ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.88 indicates that LZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
LZ's Altman-Z score of 1.88 is on the low side compared to the rest of the industry. LZ is outperformed by 62.20% of its industry peers.
There is no outstanding debt for LZ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.12
WACC8.84%
2.3 Liquidity
LZ has a Current Ratio of 0.78. This is a bad value and indicates that LZ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.78, LZ is doing worse than 84.15% of the companies in the same industry.
LZ has a Quick Ratio of 0.78. This is a bad value and indicates that LZ is not financially healthy enough and could expect problems in meeting its short term obligations.
LZ has a Quick ratio of 0.78. This is amonst the worse of the industry: LZ underperforms 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.45% over the past year.
Measured over the past years, LZ shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.44% on average per year.
LZ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.19%.
Measured over the past years, LZ shows a quite strong growth in Revenue. The Revenue has been growing by 10.80% on average per year.
EPS 1Y (TTM)45.45%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%50%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%8.54%
3.2 Future
The Earnings Per Share is expected to grow by 12.68% on average over the next years. This is quite good.
LZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.98% yearly.
EPS Next Y25%
EPS Next 2Y20.37%
EPS Next 3Y16.04%
EPS Next 5Y12.68%
Revenue Next Year8.01%
Revenue Next 2Y7.65%
Revenue Next 3Y7.17%
Revenue Next 5Y11.98%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.02, LZ is valued on the expensive side.
67.07% of the companies in the same industry are more expensive than LZ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.54, LZ is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.67 indicates a correct valuation of LZ.
Based on the Price/Forward Earnings ratio, LZ is valued a bit cheaper than 74.39% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.05. LZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.02 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
LZ's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LZ is more expensive than 62.20% of the companies in the same industry.
LZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.85 | ||
| EV/EBITDA | 24.52 |
4.3 Compensation for Growth
LZ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LZ's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)0.42
EPS Next 2Y20.37%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
LZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.89
+0.29 (+2.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners67.2%
Inst Owner Change6.91%
Ins Owners0.59%
Ins Owner Change3.84%
Market Cap1.96B
Analysts75.56
Price Target11.48 (5.42%)
Short Float %8.1%
Short Ratio4.64
Dividend
| Industry Rank | Sector 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)0
Avg EPS beat(2)-2.15%
Min EPS beat(2)-2.24%
Max EPS beat(2)-2.06%
EPS beat(4)2
Avg EPS beat(4)6%
Min EPS beat(4)-2.24%
Max EPS beat(4)16.09%
EPS beat(8)5
Avg EPS beat(8)8.87%
EPS beat(12)8
Avg EPS beat(12)11.17%
EPS beat(16)10
Avg EPS beat(16)29.68%
Revenue beat(2)2
Avg Revenue beat(2)1.35%
Min Revenue beat(2)0.41%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)5
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)-0.8%
PT rev (1m)3.05%
PT rev (3m)19.47%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)8.24%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)8.24%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.02 | ||
| Fwd PE | 13.67 | ||
| P/S | 2.78 | ||
| P/FCF | 23.85 | ||
| P/OCF | 11.97 | ||
| P/B | 10.12 | ||
| P/tB | 60.29 | ||
| EV/EBITDA | 24.52 |
EPS(TTM)0.64
EY5.88%
EPS(NY)0.8
Fwd EY7.32%
FCF(TTM)0.46
FCFY4.19%
OCF(TTM)0.91
OCFY8.36%
SpS3.92
BVpS1.08
TBVpS0.18
PEG (NY)0.68
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 14.82% | ||
| ROCE | 12.48% | ||
| ROIC | 9.86% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 3.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 65.71% | ||
| FCFM | 11.66% |
ROA(3y)-0.29%
ROA(5y)-4.65%
ROE(3y)2.06%
ROE(5y)N/A
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 5Y-16.69%
PM growth 3YN/A
PM growth 5Y27.15%
GM growth 3Y-1.14%
GM growth 5Y-0.51%
F-Score7
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 184.92% | ||
| Cap/Sales | 11.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 230.34% | ||
| Profit Quality | 286.17% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.88 |
F-Score7
WACC8.84%
ROIC/WACC1.12
Cap/Depr(3y)117.02%
Cap/Depr(5y)169.46%
Cap/Sales(3y)5%
Cap/Sales(5y)6.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)45.45%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%50%
EPS Next Y25%
EPS Next 2Y20.37%
EPS Next 3Y16.04%
EPS Next 5Y12.68%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%8.54%
Revenue Next Year8.01%
Revenue Next 2Y7.65%
Revenue Next 3Y7.17%
Revenue Next 5Y11.98%
EBIT growth 1Y-3.7%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year50.37%
EBIT Next 3Y24.89%
EBIT Next 5Y22.36%
FCF growth 1Y-6.13%
FCF growth 3YN/A
FCF growth 5Y23.81%
OCF growth 1Y32.93%
OCF growth 3Y35.81%
OCF growth 5Y20.81%