LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis
NASDAQ:LZ - US52466B1035 - Common Stock
10.445 USD
-0.4 (-3.73%)
Taking everything into account, LZ scores 5 out of 10 in our fundamental rating. LZ was compared to 83 industry peers in the Professional Services industry. LZ has only an average score on both its financial health and profitability. LZ is not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
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 better Return On Assets (5.30%) than 61.45% of its industry peers.
The Return On Equity of LZ (14.82%) is better than 66.27% of its industry peers.
The Return On Invested Capital of LZ (9.86%) is better than 68.67% 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
With a Profit Margin value of 4.07%, LZ perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
LZ's Profit Margin has improved in the last couple of years.
The Operating Margin of LZ (3.83%) is comparable to the rest of the industry.
LZ's Operating Margin has declined in the last couple of years.
The Gross Margin of LZ (65.71%) is better than 77.11% of its industry peers.
In the last couple of years the Gross Margin of LZ has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LZ is still creating some value.
LZ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LZ has been reduced compared to 5 years ago.
The debt/assets ratio for LZ has been reduced compared to a year ago.
2.2 Solvency
LZ has an Altman-Z score of 1.87. This is not the best score and indicates that LZ is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of LZ (1.87) is worse than 63.86% 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 | 1.87 |
ROIC/WACC1.11
WACC8.86%
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 83.13% 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.
The Quick ratio of LZ (0.78) is worse than 83.13% 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.
The Earnings Per Share has been growing by 40.44% on average over the past years. This is a very strong growth
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
LZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.68% yearly.
The Revenue is expected to grow by 11.98% on average over the next years. This is quite good.
EPS Next Y26.72%
EPS Next 2Y20.96%
EPS Next 3Y16.68%
EPS Next 5Y12.68%
Revenue Next Year7.75%
Revenue Next 2Y7.46%
Revenue Next 3Y7.22%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.32, the valuation of LZ can be described as correct.
Based on the Price/Earnings ratio, LZ is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
LZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
The Price/Forward Earnings ratio is 12.98, which indicates a correct valuation of LZ.
73.49% of the companies in the same industry are more expensive than LZ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, LZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZ is valued a bit more expensive than 61.45% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as LZ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.87 | ||
| EV/EBITDA | 24.41 |
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 16.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)0.4
EPS Next 2Y20.96%
EPS Next 3Y16.68%
5. Dividend
5.1 Amount
No dividends for LZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LZ (9/5/2025, 3:24:05 PM)
10.445
-0.4 (-3.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners62.28%
Inst Owner Change6.91%
Ins Owners0.51%
Ins Owner Change-3.84%
Market Cap1.88B
Analysts51.11
Price Target11.14 (6.65%)
Short Float %7.26%
Short Ratio4.32
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)15.93%
PT rev (3m)19.09%
EPS NQ rev (1m)8.36%
EPS NQ rev (3m)20.19%
EPS NY rev (1m)9.72%
EPS NY rev (3m)5.17%
Revenue NQ rev (1m)3.17%
Revenue NQ rev (3m)4.71%
Revenue NY rev (1m)2.45%
Revenue NY rev (3m)2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 12.98 | ||
| P/S | 2.67 | ||
| P/FCF | 22.87 | ||
| P/OCF | 11.48 | ||
| P/B | 9.7 | ||
| P/tB | 57.83 | ||
| EV/EBITDA | 24.41 |
EPS(TTM)0.64
EY6.13%
EPS(NY)0.8
Fwd EY7.7%
FCF(TTM)0.46
FCFY4.37%
OCF(TTM)0.91
OCFY8.71%
SpS3.92
BVpS1.08
TBVpS0.18
PEG (NY)0.61
PEG (5Y)0.4
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 | 1.87 |
F-Score7
WACC8.86%
ROIC/WACC1.11
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 Y26.72%
EPS Next 2Y20.96%
EPS Next 3Y16.68%
EPS Next 5Y12.68%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%8.54%
Revenue Next Year7.75%
Revenue Next 2Y7.46%
Revenue Next 3Y7.22%
Revenue Next 5Y11.98%
EBIT growth 1Y-3.7%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year48.23%
EBIT Next 3Y23.36%
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%