LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis
USA - NASDAQ:LZ - US52466B1035 - Common Stock
9.92 USD
-0.17 (-1.68%)
9.91 USD
-0.01 (-0.1%)
We assign a fundamental rating of 5 out of 10 to LZ. LZ was compared to 87 industry peers in the Professional Services industry. LZ has an average financial health and profitability rating. LZ is growing strongly while it is still valued neutral. This is a good combination! These ratings could make LZ a good candidate 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.
The reported net income has been mixed in the past 5 years: LZ reported negative net income in multiple years.
In the past 5 years LZ always reported a positive cash flow from operatings.
1.2 Ratios
LZ's Return On Assets of 5.30% is fine compared to the rest of the industry. LZ outperforms 62.07% of its industry peers.
LZ has a Return On Equity of 14.82%. This is in the better half of the industry: LZ outperforms 66.67% of its industry peers.
The Return On Invested Capital of LZ (9.86%) is better than 70.11% 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 has a Profit Margin (4.07%) which is comparable to the rest of the industry.
LZ's Profit Margin has improved in the last couple of years.
LZ's Operating Margin of 3.83% is in line compared to the rest of the industry. LZ outperforms 47.13% 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 79.31% 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
LZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LZ has been reduced compared to 1 year ago.
LZ has less shares outstanding than it did 5 years ago.
LZ has a better debt/assets ratio than last year.
2.2 Solvency
LZ has an Altman-Z score of 1.64. This is a bad value and indicates that LZ is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of LZ (1.64) is worse than 67.82% of its industry peers.
LZ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.64 |
ROIC/WACC1.12
WACC8.77%
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.
LZ has a Current ratio of 0.78. This is amonst the worse of the industry: LZ underperforms 82.76% of its industry peers.
A Quick Ratio of 0.78 indicates that LZ may have some problems paying its short term obligations.
LZ has a worse Quick ratio (0.78) than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
LZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.45%, which is quite impressive.
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%.
LZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.80% yearly.
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.
The Revenue is expected to grow by 11.98% on average over the next years. This is quite good.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 15.50, which indicates a correct valuation of LZ.
LZ's Price/Earnings ratio is a bit cheaper when compared to the industry. LZ is cheaper than 71.26% of the companies in the same industry.
LZ is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.45 indicates a correct valuation of LZ.
LZ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LZ is cheaper than 68.97% of the companies in the same industry.
LZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LZ.
Based on the Price/Free Cash Flow ratio, LZ is valued a bit cheaper than the industry average as 60.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.72 | ||
| EV/EBITDA | 22.49 |
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.
A more expensive valuation may be justified as LZ's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)0.62
PEG (5Y)0.38
EPS Next 2Y20.37%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
No dividends for LZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.92
-0.17 (-1.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners67.2%
Inst Owner Change-0.23%
Ins Owners0.59%
Ins Owner Change3.84%
Market Cap1.79B
Revenue(TTM)705.92M
Net Income(TTM)28.77M
Analysts75.56
Price Target11.48 (15.73%)
Short Float %9.15%
Short Ratio5.53
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)0%
PT rev (3m)19.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.79%
EPS NY rev (1m)0%
EPS NY rev (3m)8.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 12.45 | ||
| P/S | 2.53 | ||
| P/FCF | 21.72 | ||
| P/OCF | 10.9 | ||
| P/B | 9.21 | ||
| P/tB | 54.92 | ||
| EV/EBITDA | 22.49 |
EPS(TTM)0.64
EY6.45%
EPS(NY)0.8
Fwd EY8.03%
FCF(TTM)0.46
FCFY4.6%
OCF(TTM)0.91
OCFY9.17%
SpS3.92
BVpS1.08
TBVpS0.18
PEG (NY)0.62
PEG (5Y)0.38
Graham Number3.94
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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.64 |
F-Score7
WACC8.77%
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%
LEGALZOOMCOM INC / LZ FAQ
What is the ChartMill fundamental rating of LEGALZOOMCOM INC (LZ) stock?
ChartMill assigns a fundamental rating of 5 / 10 to LZ.
What is the valuation status for LZ stock?
ChartMill assigns a valuation rating of 5 / 10 to LEGALZOOMCOM INC (LZ). This can be considered as Fairly Valued.
What is the profitability of LZ stock?
LEGALZOOMCOM INC (LZ) has a profitability rating of 5 / 10.
What are the PE and PB ratios of LEGALZOOMCOM INC (LZ) stock?
The Price/Earnings (PE) ratio for LEGALZOOMCOM INC (LZ) is 15.5 and the Price/Book (PB) ratio is 9.21.