LEGALZOOMCOM INC (LZ) Fundamental Analysis & Valuation

NASDAQ:LZ • US52466B1035

Current stock price

6.49 USD
+0.15 (+2.37%)
At close:
6.4726 USD
-0.02 (-0.27%)
After Hours:

This LZ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. LZ Profitability Analysis

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.
  • Each year in the past 5 years LZ had a positive operating cash flow.
LZ Yearly Net Income VS EBIT VS OCF VS FCFLZ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M 150M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.02%, LZ is in line with its industry, outperforming 51.16% of the companies in the same industry.
  • With a Return On Equity value of 8.98%, LZ perfoms like the industry average, outperforming 54.65% of the companies in the same industry.
  • The Return On Invested Capital of LZ (3.49%) is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for LZ is in line with the industry average of 13.03%.
  • The 3 year average ROIC (11.40%) for LZ is well above the current ROIC(3.49%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 3.02%
ROE 8.98%
ROIC 3.49%
ROA(3y)4.72%
ROA(5y)-4.62%
ROE(3y)16.46%
ROE(5y)-7.97%
ROIC(3y)11.4%
ROIC(5y)N/A
LZ Yearly ROA, ROE, ROICLZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 2025 0 50 -50

1.3 Margins

  • The Profit Margin of LZ (2.04%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of LZ has grown nicely.
  • The Operating Margin of LZ (1.52%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of LZ has declined.
  • Looking at the Gross Margin, with a value of 65.88%, LZ belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
  • LZ's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 1.52%
PM (TTM) 2.04%
GM 65.88%
OM growth 3YN/A
OM growth 5Y-33.33%
PM growth 3YN/A
PM growth 5Y5.93%
GM growth 3Y-0.04%
GM growth 5Y-0.39%
LZ Yearly Profit, Operating, Gross MarginsLZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. LZ Health Analysis

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.
  • LZ has more 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.
LZ Yearly Shares OutstandingLZ Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
LZ Yearly Total Debt VS Total AssetsLZ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

2.2 Solvency

  • Based on the Altman-Z score of 0.20, we must say that LZ is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of LZ (0.20) is worse than 79.07% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 0.2
ROIC/WACC0.39
WACC8.9%
LZ Yearly LT Debt VS Equity VS FCFLZ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M -400M

2.3 Liquidity

  • A Current Ratio of 0.76 indicates that LZ may have some problems paying its short term obligations.
  • With a Current ratio value of 0.76, LZ is not doing good in the industry: 84.88% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.76 indicates that LZ may have some problems paying its short term obligations.
  • LZ has a Quick ratio of 0.76. This is amonst the worse of the industry: LZ underperforms 83.72% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
LZ Yearly Current Assets VS Current LiabilitesLZ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. LZ Growth Analysis

3.1 Past

  • LZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.73%, which is quite good.
  • Measured over the past years, LZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.86% on average per year.
  • Looking at the last year, LZ shows a quite strong growth in Revenue. The Revenue has grown by 10.88% in the last year.
  • LZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.95% yearly.
EPS 1Y (TTM)12.73%
EPS 3Y60.48%
EPS 5Y15.86%
EPS Q2Q%-10.53%
Revenue 1Y (TTM)10.88%
Revenue growth 3Y6.84%
Revenue growth 5Y9.95%
Sales Q2Q%17.66%

3.2 Future

  • The Earnings Per Share is expected to grow by 12.82% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 12.01% on average over the next years. This is quite good.
EPS Next Y23.52%
EPS Next 2Y16.89%
EPS Next 3Y11.69%
EPS Next 5Y12.82%
Revenue Next Year9.06%
Revenue Next 2Y8.08%
Revenue Next 3Y6.94%
Revenue Next 5Y12.01%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 accelerating.
LZ Yearly Revenue VS EstimatesLZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M 800M 1B
LZ Yearly EPS VS EstimatesLZ Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.2 0.4 0.6 0.8 1

More info and screens

Find the best growth stocksShow best growing peers

7

4. LZ Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.47 indicates a reasonable valuation of LZ.
  • Based on the Price/Earnings ratio, LZ is valued cheaper than 83.72% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.87, LZ is valued rather cheaply.
  • LZ is valuated reasonably with a Price/Forward Earnings ratio of 8.47.
  • 89.53% of the companies in the same industry are more expensive than LZ, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 38.51. LZ is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.47
Fwd PE 8.47
LZ Price Earnings VS Forward Price EarningsLZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • LZ's Enterprise Value to EBITDA is on the same level as the industry average.
  • 87.21% of the companies in the same industry are more expensive than LZ, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.59
EV/EBITDA 16.06
LZ Per share dataLZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

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)0.45
PEG (5Y)0.66
EPS Next 2Y16.89%
EPS Next 3Y11.69%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. LZ Dividend Analysis

5.1 Amount

  • No dividends for LZ!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

LZ Fundamentals: All Metrics, Ratios and Statistics

LEGALZOOMCOM INC

NASDAQ:LZ (4/17/2026, 9:31:09 PM)

After market: 6.4726 -0.02 (-0.27%)

6.49

+0.15 (+2.37%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-19
Earnings (Next)05-05
Inst Owners76.05%
Inst Owner Change0.06%
Ins Owners0.84%
Ins Owner Change2.89%
Market Cap1.12B
Revenue(TTM)756.04M
Net Income(TTM)15.43M
Analysts76.67
Price Target8.5 (30.97%)
Short Float %9.65%
Short Ratio3.47
Dividend
Industry RankSector 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)-9.22%
Min EPS beat(2)-11.69%
Max EPS beat(2)-6.75%
EPS beat(4)0
Avg EPS beat(4)-5.69%
Min EPS beat(4)-11.69%
Max EPS beat(4)-2.06%
EPS beat(8)3
Avg EPS beat(8)0.02%
EPS beat(12)6
Avg EPS beat(12)5.82%
EPS beat(16)9
Avg EPS beat(16)15.64%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)0.75%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)5
Avg Revenue beat(12)-0.29%
Revenue beat(16)7
Avg Revenue beat(16)-0.43%
PT rev (1m)-5.66%
PT rev (3m)-31.03%
EPS NQ rev (1m)1.53%
EPS NQ rev (3m)-20.42%
EPS NY rev (1m)0%
EPS NY rev (3m)5.8%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.84%
Valuation
Industry RankSector Rank
PE 10.47
Fwd PE 8.47
P/S 1.48
P/FCF 7.59
P/OCF 6.3
P/B 6.53
P/tB 86.16
EV/EBITDA 16.06
EPS(TTM)0.62
EY9.55%
EPS(NY)0.77
Fwd EY11.8%
FCF(TTM)0.86
FCFY13.18%
OCF(TTM)1.03
OCFY15.88%
SpS4.37
BVpS0.99
TBVpS0.08
PEG (NY)0.45
PEG (5Y)0.66
Graham Number3.72374 (-42.62%)
Profitability
Industry RankSector Rank
ROA 3.02%
ROE 8.98%
ROCE 5.95%
ROIC 3.49%
ROICexc N/A
ROICexgc N/A
OM 1.52%
PM (TTM) 2.04%
GM 65.88%
FCFM 19.57%
ROA(3y)4.72%
ROA(5y)-4.62%
ROE(3y)16.46%
ROE(5y)-7.97%
ROIC(3y)11.4%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.48%
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-33.33%
PM growth 3YN/A
PM growth 5Y5.93%
GM growth 3Y-0.04%
GM growth 5Y-0.39%
F-Score7
Asset Turnover1.48
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 68.62%
Cap/Sales 4%
Interest Coverage 250
Cash Conversion 320.41%
Profit Quality 958.84%
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 0.2
F-Score7
WACC8.9%
ROIC/WACC0.39
Cap/Depr(3y)98.43%
Cap/Depr(5y)175.29%
Cap/Sales(3y)4.67%
Cap/Sales(5y)6.35%
Profit Quality(3y)652.29%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.73%
EPS 3Y60.48%
EPS 5Y15.86%
EPS Q2Q%-10.53%
EPS Next Y23.52%
EPS Next 2Y16.89%
EPS Next 3Y11.69%
EPS Next 5Y12.82%
Revenue 1Y (TTM)10.88%
Revenue growth 3Y6.84%
Revenue growth 5Y9.95%
Sales Q2Q%17.66%
Revenue Next Year9.06%
Revenue Next 2Y8.08%
Revenue Next 3Y6.94%
Revenue Next 5Y12.01%
EBIT growth 1Y-72.42%
EBIT growth 3YN/A
EBIT growth 5Y-26.7%
EBIT Next Year35.4%
EBIT Next 3Y17.38%
EBIT Next 5Y19.38%
FCF growth 1Y48%
FCF growth 3Y51.06%
FCF growth 5Y12.65%
OCF growth 1Y31.38%
OCF growth 3Y34.13%
OCF growth 5Y13.88%

LEGALZOOMCOM INC / LZ Fundamental Analysis 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 of LEGALZOOMCOM INC (LZ) stock?

ChartMill assigns a valuation rating of 7 / 10 to LEGALZOOMCOM INC (LZ). This can be considered as Undervalued.


How profitable is LEGALZOOMCOM INC (LZ) stock?

LEGALZOOMCOM INC (LZ) has a profitability rating of 5 / 10.


How financially healthy is LEGALZOOMCOM INC?

The financial health rating of LEGALZOOMCOM INC (LZ) is 4 / 10.