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CS DISCO INC (LAW) Stock Fundamental Analysis

NYSE:LAW - New York Stock Exchange, Inc. - US1263271058 - Common Stock - Currency: USD

5.25  +0.25 (+5%)

After market: 5.25 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to LAW. LAW was compared to 283 industry peers in the Software industry. The financial health of LAW is average, but there are quite some concerns on its profitability. LAW does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

LAW had negative earnings in the past year.
LAW had a negative operating cash flow in the past year.
In the past 5 years LAW always reported negative net income.
LAW had a negative operating cash flow in each of the past 5 years.
LAW Yearly Net Income VS EBIT VS OCF VS FCFLAW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 -20M -40M -60M

1.2 Ratios

With a Return On Assets value of -18.73%, LAW is not doing good in the industry: 70.55% of the companies in the same industry are doing better.
The Return On Equity of LAW (-21.77%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA -18.73%
ROE -21.77%
ROIC N/A
ROA(3y)-18.11%
ROA(5y)-33.34%
ROE(3y)-20.59%
ROE(5y)-41.99%
ROIC(3y)N/A
ROIC(5y)N/A
LAW Yearly ROA, ROE, ROICLAW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 -20 -40 -60 -80 -100

1.3 Margins

Looking at the Gross Margin, with a value of 74.53%, LAW is in the better half of the industry, outperforming 64.73% of the companies in the same industry.
LAW's Gross Margin has improved in the last couple of years.
LAW does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 74.53%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.1%
GM growth 5YN/A
LAW Yearly Profit, Operating, Gross MarginsLAW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 -60

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6

2. Health

2.1 Basic Checks

LAW does not have a ROIC to compare to the WACC, probably because it is not profitable.
LAW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
LAW Yearly Shares OutstandingLAW Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M
LAW Yearly Total Debt VS Total AssetsLAW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.2 Solvency

An Altman-Z score of 5.85 indicates that LAW is not in any danger for bankruptcy at the moment.
LAW has a better Altman-Z score (5.85) than 69.09% of its industry peers.
LAW has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LAW (0.00) is better than 67.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 5.85
ROIC/WACCN/A
WACC13.99%
LAW Yearly LT Debt VS Equity VS FCFLAW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 100M 200M

2.3 Liquidity

LAW has a Current Ratio of 7.49. This indicates that LAW is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LAW (7.49) is better than 94.18% of its industry peers.
A Quick Ratio of 7.49 indicates that LAW has no problem at all paying its short term obligations.
LAW's Quick ratio of 7.49 is amongst the best of the industry. LAW outperforms 94.55% of its industry peers.
Industry RankSector Rank
Current Ratio 7.49
Quick Ratio 7.49
LAW Yearly Current Assets VS Current LiabilitesLAW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

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2

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 26.32% over the past year.
EPS 1Y (TTM)26.32%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-600%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.52%

3.2 Future

LAW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.52% yearly.
The Revenue is expected to grow by 6.56% on average over the next years.
EPS Next Y-4.31%
EPS Next 2Y15.64%
EPS Next 3Y11.52%
EPS Next 5YN/A
Revenue Next Year4.64%
Revenue Next 2Y5.83%
Revenue Next 3Y6.56%
Revenue Next 5YN/A

3.3 Evolution

LAW Yearly Revenue VS EstimatesLAW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M
LAW Yearly EPS VS EstimatesLAW Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 -0.2 -0.4 -0.6 -0.8

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0

4. Valuation

4.1 Price/Earnings Ratio

LAW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for LAW. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
LAW Price Earnings VS Forward Price EarningsLAW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
LAW Per share dataLAW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.64%
EPS Next 3Y11.52%

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0

5. Dividend

5.1 Amount

LAW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CS DISCO INC

NYSE:LAW (2/21/2025, 8:04:00 PM)

After market: 5.25 0 (0%)

5.25

+0.25 (+5%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners68.02%
Inst Owner Change-93.35%
Ins Owners4.67%
Ins Owner Change7.6%
Market Cap314.53M
Analysts50.77
Price Target7.27 (38.48%)
Short Float %1.14%
Short Ratio4.12
Dividend
Industry RankSector 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)2
Avg EPS beat(2)30.01%
Min EPS beat(2)23.56%
Max EPS beat(2)36.46%
EPS beat(4)4
Avg EPS beat(4)44.6%
Min EPS beat(4)23.56%
Max EPS beat(4)89.61%
EPS beat(8)8
Avg EPS beat(8)42.37%
EPS beat(12)12
Avg EPS beat(12)37.05%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)1.13%
Revenue beat(8)6
Avg Revenue beat(8)1.51%
Revenue beat(12)9
Avg Revenue beat(12)3.67%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.72%
PT rev (3m)6.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 2.19
P/FCF N/A
P/OCF N/A
P/B 1.88
P/tB 2.14
EV/EBITDA N/A
EPS(TTM)-0.28
EYN/A
EPS(NY)-0.29
Fwd EYN/A
FCF(TTM)-0.19
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS2.4
BVpS2.79
TBVpS2.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -18.73%
ROE -21.77%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 74.53%
FCFM N/A
ROA(3y)-18.11%
ROA(5y)-33.34%
ROE(3y)-20.59%
ROE(5y)-41.99%
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 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.1%
GM growth 5YN/A
F-Score5
Asset Turnover0.74
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 82.34%
Cap/Sales 2.43%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 7.49
Quick Ratio 7.49
Altman-Z 5.85
F-Score5
WACC13.99%
ROIC/WACCN/A
Cap/Depr(3y)262.38%
Cap/Depr(5y)264.14%
Cap/Sales(3y)6.54%
Cap/Sales(5y)5.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.32%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-600%
EPS Next Y-4.31%
EPS Next 2Y15.64%
EPS Next 3Y11.52%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.52%
Revenue Next Year4.64%
Revenue Next 2Y5.83%
Revenue Next 3Y6.56%
Revenue Next 5YN/A
EBIT growth 1Y28.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.93%
EBIT Next 3Y20.63%
EBIT Next 5Y16.86%
FCF growth 1Y74.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y80.61%
OCF growth 3YN/A
OCF growth 5YN/A