7.96 USD
+0.05 (+0.63%)
Last: Feb 10, 2026, 10:13 AM
LZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 89 industry peers in the Professional Services industry. Both the profitability and the financial health of LZ get a neutral evaluation. Nothing too spectacular is happening here. LZ is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
- LZ had positive earnings in the past year.
- In the past year LZ had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: LZ reported negative net income in multiple years.
- Each year in the past 5 years LZ had a positive operating cash flow.
1.2 Ratios
- LZ's Return On Assets of 4.03% is in line compared to the rest of the industry. LZ outperforms 59.55% of its industry peers.
- With a Return On Equity value of 11.01%, LZ perfoms like the industry average, outperforming 59.55% of the companies in the same industry.
- The Return On Invested Capital of LZ (4.03%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 11.01% | ||
| ROIC | 4.03% |
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 of 3.05%. This is comparable to the rest of the industry: LZ outperforms 56.18% of its industry peers.
- LZ's Profit Margin has improved in the last couple of years.
- The Operating Margin of LZ (1.57%) is comparable to the rest of the industry.
- LZ's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 65.69%, LZ belongs to the top of the industry, outperforming 83.15% of the companies in the same industry.
- 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 | 1.57% | ||
| PM (TTM) | 3.05% | ||
| GM | 65.69% |
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 below the Cost of Capital (WACC), which means it is destroying value.
- LZ has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, LZ has less shares outstanding
- LZ has a better debt/assets ratio than last year.
2.2 Solvency
- LZ has an Altman-Z score of 0.90. 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 (0.90) is worse than 67.42% 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 | 0.9 |
ROIC/WACC0.46
WACC8.86%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that LZ may have some problems paying its short term obligations.
- LZ has a worse Current ratio (0.84) than 80.90% of its industry peers.
- LZ has a Quick Ratio of 0.84. 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's Quick ratio of 0.84 is on the low side compared to the rest of the industry. LZ is outperformed by 80.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- LZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.61%, which is quite impressive.
- LZ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.44% yearly.
- Looking at the last year, LZ shows a small growth in Revenue. The Revenue has grown by 7.17% in the last year.
- 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)30.61%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%0%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%12.79%
3.2 Future
- Based on estimates for the next years, LZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.68% on average per year.
- Based on estimates for the next years, LZ will show a quite strong growth in Revenue. The Revenue will grow by 11.98% on average per year.
EPS Next Y17.65%
EPS Next 2Y13.05%
EPS Next 3Y10.48%
EPS Next 5Y12.68%
Revenue Next Year10.23%
Revenue Next 2Y8.58%
Revenue Next 3Y7.64%
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
- With a Price/Earnings ratio of 12.44, LZ is valued correctly.
- Based on the Price/Earnings ratio, LZ is valued a bit cheaper than 78.65% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.06. LZ is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 11.32, which indicates a very decent valuation of LZ.
- LZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. LZ is cheaper than 80.90% of the companies in the same industry.
- LZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LZ is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LZ indicates a rather cheap valuation: LZ is cheaper than 89.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.06 | ||
| EV/EBITDA | 21.39 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.7
PEG (5Y)0.31
EPS Next 2Y13.05%
EPS Next 3Y10.48%
5. Dividend
5.1 Amount
- LZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:LZ (2/10/2026, 10:13:09 AM)
7.96
+0.05 (+0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-19 2026-02-19/amc
Inst Owners74.89%
Inst Owner Change-1.92%
Ins Owners0.41%
Ins Owner Change-8.56%
Market Cap1.41B
Revenue(TTM)727.48M
Net Income(TTM)22.22M
Analysts77.78
Price Target12.33 (54.9%)
Short Float %9.48%
Short Ratio5.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-6.88%
Min EPS beat(2)-11.69%
Max EPS beat(2)-2.06%
EPS beat(4)1
Avg EPS beat(4)0.02%
Min EPS beat(4)-11.69%
Max EPS beat(4)16.09%
EPS beat(8)4
Avg EPS beat(8)3.63%
EPS beat(12)7
Avg EPS beat(12)9.27%
EPS beat(16)10
Avg EPS beat(16)33.34%
Revenue beat(2)2
Avg Revenue beat(2)1.52%
Min Revenue beat(2)0.75%
Max Revenue beat(2)2.3%
Revenue beat(4)3
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.85%
Revenue beat(12)5
Avg Revenue beat(12)-0.43%
Revenue beat(16)7
Avg Revenue beat(16)-0.68%
PT rev (1m)0%
PT rev (3m)7.41%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)0.5%
EPS NY rev (3m)-5.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 11.32 | ||
| P/S | 1.94 | ||
| P/FCF | 9.06 | ||
| P/OCF | 7.56 | ||
| P/B | 6.99 | ||
| P/tB | 33.58 | ||
| EV/EBITDA | 21.39 |
EPS(TTM)0.64
EY8.04%
EPS(NY)0.7
Fwd EY8.83%
FCF(TTM)0.88
FCFY11.04%
OCF(TTM)1.05
OCFY13.23%
SpS4.1
BVpS1.14
TBVpS0.24
PEG (NY)0.7
PEG (5Y)0.31
Graham Number4.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 11.01% | ||
| ROCE | 5.1% | ||
| ROIC | 4.03% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 1.57% | ||
| PM (TTM) | 3.05% | ||
| GM | 65.69% | ||
| FCFM | 21.42% |
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-Score6
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 71.68% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 342.75% | ||
| Profit Quality | 701.06% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 0.9 |
F-Score6
WACC8.86%
ROIC/WACC0.46
Cap/Depr(3y)122.96%
Cap/Depr(5y)173.03%
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)30.61%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%0%
EPS Next Y17.65%
EPS Next 2Y13.05%
EPS Next 3Y10.48%
EPS Next 5Y12.68%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%12.79%
Revenue Next Year10.23%
Revenue Next 2Y8.58%
Revenue Next 3Y7.64%
Revenue Next 5Y11.98%
EBIT growth 1Y-71.34%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year52.16%
EBIT Next 3Y23.79%
EBIT Next 5Y22.36%
FCF growth 1Y76.05%
FCF growth 3YN/A
FCF growth 5Y23.81%
OCF growth 1Y51.01%
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.
Can you provide the valuation status for LEGALZOOMCOM INC?
ChartMill assigns a valuation rating of 7 / 10 to LEGALZOOMCOM INC (LZ). This can be considered as Undervalued.
What is the profitability of LZ stock?
LEGALZOOMCOM INC (LZ) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for LZ stock?
The Earnings per Share (EPS) of LEGALZOOMCOM INC (LZ) is expected to grow by 17.65% in the next year.