LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis
NASDAQ:LZ - Nasdaq - US52466B1035 - Common Stock - Currency: USD
Taking everything into account, LZ scores 5 out of 10 in our fundamental rating. 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! These ratings could make LZ a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
LZ had positive earnings in the past year.
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.
Each year in the past 5 years LZ had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.70%, LZ is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
The Return On Equity of LZ (16.21%) is better than 63.41% of its industry peers.
LZ's Return On Invested Capital of 11.88% is fine compared to the rest of the industry. LZ outperforms 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 16.21% | ||
| ROIC | 11.88% |
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 (4.39%) 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 4.58% is in line compared to the rest of the industry. LZ outperforms 48.78% of its industry peers.
LZ's Operating Margin has declined in the last couple of years.
LZ has a Gross Margin of 65.51%. This is in the better half of the industry: LZ outperforms 78.05% 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 | 4.58% | ||
| PM (TTM) | 4.39% | ||
| GM | 65.51% |
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.
The number of shares outstanding for LZ has been reduced compared to 5 years ago.
LZ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that LZ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LZ (1.33) is worse than 71.95% 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 | 1.33 |
ROIC/WACC1.31
WACC9.07%
2.3 Liquidity
LZ has a Current Ratio of 0.77. 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 0.77, LZ is doing worse than 86.59% of the companies in the same industry.
LZ has a Quick Ratio of 0.77. 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 0.77. This is amonst the worse of the industry: LZ underperforms 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.09% 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 3.24%.
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)34.09%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%44.44%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%5.11%
3.2 Future
The Earnings Per Share is expected to grow by 12.68% on average over the next years. This is quite good.
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 Y15.49%
EPS Next 2Y14.66%
EPS Next 3Y12.49%
EPS Next 5Y12.68%
Revenue Next Year5.17%
Revenue Next 2Y6.2%
Revenue Next 3Y6.36%
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
With a Price/Earnings ratio of 15.10, LZ is valued correctly.
Based on the Price/Earnings ratio, LZ is valued a bit cheaper than 68.29% of the companies in the same industry.
LZ is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.32, LZ is valued correctly.
Based on the Price/Forward Earnings ratio, LZ is valued a bit cheaper than 74.39% of the companies in the same industry.
LZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LZ.
The rest of the industry has a similar Price/Free Cash Flow ratio as LZ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.59 | ||
| EV/EBITDA | 20.27 |
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 12.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)0.37
EPS Next 2Y14.66%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
No dividends for LZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.91
-0.26 (-2.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners64.36%
Inst Owner Change0%
Ins Owners0.56%
Ins Owner Change25.35%
Market Cap1.61B
Analysts51.11
Price Target9.61 (7.86%)
Short Float %6.55%
Short Ratio4.49
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)1
Avg EPS beat(2)6.93%
Min EPS beat(2)-2.24%
Max EPS beat(2)16.09%
EPS beat(4)3
Avg EPS beat(4)7.5%
Min EPS beat(4)-2.24%
Max EPS beat(4)16.09%
EPS beat(8)5
Avg EPS beat(8)8.99%
EPS beat(12)9
Avg EPS beat(12)32.53%
EPS beat(16)11
Avg EPS beat(16)33.61%
Revenue beat(2)1
Avg Revenue beat(2)-1%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)0.41%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)0.41%
Revenue beat(8)2
Avg Revenue beat(8)-1.28%
Revenue beat(12)4
Avg Revenue beat(12)-0.83%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)0%
PT rev (3m)-2.59%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)-4.15%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.32 | ||
| P/S | 2.34 | ||
| P/FCF | 23.59 | ||
| P/OCF | 10.61 | ||
| P/B | 8.62 | ||
| P/tB | 74.14 | ||
| EV/EBITDA | 20.27 |
EPS(TTM)0.59
EY6.62%
EPS(NY)0.72
Fwd EY8.12%
FCF(TTM)0.38
FCFY4.24%
OCF(TTM)0.84
OCFY9.42%
SpS3.81
BVpS1.03
TBVpS0.12
PEG (NY)0.97
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 16.21% | ||
| ROCE | 15.04% | ||
| ROIC | 11.88% | ||
| ROICexc | 12611.3% | ||
| ROICexgc | N/A | ||
| OM | 4.58% | ||
| PM (TTM) | 4.39% | ||
| GM | 65.51% | ||
| FCFM | 9.91% |
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 | 222.29% | ||
| Cap/Sales | 12.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 219.64% | ||
| Profit Quality | 225.49% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.33 |
F-Score7
WACC9.07%
ROIC/WACC1.31
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)34.09%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%44.44%
EPS Next Y15.49%
EPS Next 2Y14.66%
EPS Next 3Y12.49%
EPS Next 5Y12.68%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%5.11%
Revenue Next Year5.17%
Revenue Next 2Y6.2%
Revenue Next 3Y6.36%
Revenue Next 5Y11.98%
EBIT growth 1Y1.01%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year48.14%
EBIT Next 3Y23.64%
EBIT Next 5Y22.36%
FCF growth 1Y22.41%
FCF growth 3YN/A
FCF growth 5Y23.81%
OCF growth 1Y70.38%
OCF growth 3Y35.81%
OCF growth 5Y20.81%