LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis
USA - NASDAQ:LZ - US52466B1035 - Common Stock
10.93 USD
+0.75 (+7.42%)
10.94 USD
+0.01 (+0.09%)
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 only an average score on both its financial health and profitability. LZ is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, LZ could be worth investigating further 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.
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 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 in line with its industry peers.
In the last couple of years the Profit Margin of LZ has grown nicely.
LZ has a Operating Margin (3.83%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LZ has declined.
The Gross Margin of LZ (65.71%) is better than 79.31% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LZ is creating some value.
LZ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LZ has less shares outstanding
Compared to 1 year ago, LZ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.90 indicates that LZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
LZ has a worse Altman-Z score (1.90) than 62.07% 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 | 1.9 |
ROIC/WACC1.12
WACC8.81%
2.3 Liquidity
A Current Ratio of 0.78 indicates that LZ may have some problems paying its short term obligations.
The Current ratio of LZ (0.78) is worse than 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 Quick ratio of 0.78. This is amonst the worse of the industry: LZ underperforms 82.76% 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 30.61% over the past year.
LZ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.44% yearly.
The Revenue has been growing slightly by 3.20% in the past 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)3.2%
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.
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
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 17.08, LZ is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of LZ indicates a somewhat cheap valuation: LZ is cheaper than 65.52% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LZ to the average of the S&P500 Index (25.67), we can say LZ is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.72, the valuation of LZ can be described as correct.
Based on the Price/Forward Earnings ratio, LZ is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LZ to the average of the S&P500 Index (31.86), we can say LZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 13.72 |
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 63.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LZ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.93 | ||
| EV/EBITDA | 24.62 |
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)0.68
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 |
10.93
+0.75 (+7.42%)
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 Cap1.97B
Revenue(TTM)681.88M
Net Income(TTM)28.77M
Analysts75.56
Price Target11.48 (5.03%)
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 | 17.08 | ||
| Fwd PE | 13.72 | ||
| P/S | 2.79 | ||
| P/FCF | 23.93 | ||
| P/OCF | 12.01 | ||
| P/B | 10.15 | ||
| P/tB | 60.52 | ||
| EV/EBITDA | 24.62 |
EPS(TTM)0.64
EY5.86%
EPS(NY)0.8
Fwd EY7.29%
FCF(TTM)0.46
FCFY4.18%
OCF(TTM)0.91
OCFY8.33%
SpS3.92
BVpS1.08
TBVpS0.18
PEG (NY)0.68
PEG (5Y)0.42
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 | 1.9 |
F-Score7
WACC8.81%
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)30.61%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%0%
EPS Next Y25%
EPS Next 2Y20.37%
EPS Next 3Y16.04%
EPS Next 5Y12.68%
Revenue 1Y (TTM)3.2%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%12.79%
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 17.08 and the Price/Book (PB) ratio is 10.15.