LAZARD INC (LAZ) Stock Fundamental Analysis
NYSE:LAZ - New York Stock Exchange, Inc. - US52110M1099 - Common Stock - Currency: USD
LAZ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 223 industry peers in the Capital Markets industry. Both the profitability and the financial health of LAZ get a neutral evaluation. Nothing too spectacular is happening here. LAZ is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make LAZ a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year LAZ was profitable.
LAZ had a positive operating cash flow in the past year.
Of the past 5 years LAZ 4 years were profitable.
In the past 5 years LAZ always reported a positive cash flow from operatings.
1.2 Ratios
LAZ has a better Return On Assets (5.70%) than 70.40% of its industry peers.
With an excellent Return On Equity value of 42.91%, LAZ belongs to the best of the industry, outperforming 97.76% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.37%, LAZ belongs to the best of the industry, outperforming 84.30% of the companies in the same industry.
LAZ had an Average Return On Invested Capital over the past 3 years of 6.49%. This is in line with the industry average of 7.05%.
The last Return On Invested Capital (10.37%) for LAZ is above the 3 year average (6.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 42.91% | ||
| ROIC | 10.37% |
ROA(3y)3.33%
ROA(5y)4.77%
ROE(3y)29.09%
ROE(5y)36.77%
ROIC(3y)6.49%
ROIC(5y)7.55%
1.3 Margins
LAZ has a Profit Margin of 8.65%. This is in the lower half of the industry: LAZ underperforms 65.02% of its industry peers.
LAZ's Profit Margin has declined in the last couple of years.
LAZ has a worse Operating Margin (14.29%) than 65.47% of its industry peers.
In the last couple of years the Operating Margin of LAZ has declined.
The Gross Margin of LAZ (93.82%) is better than 93.72% of its industry peers.
In the last couple of years the Gross Margin of LAZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.29% | ||
| PM (TTM) | 8.65% | ||
| GM | 93.82% |
OM growth 3Y-20.51%
OM growth 5Y-6.29%
PM growth 3Y-17.15%
PM growth 5Y-3.2%
GM growth 3Y0%
GM growth 5Y0.18%
2. Health
2.1 Basic Checks
Compared to 1 year ago, LAZ has more shares outstanding
Compared to 5 years ago, LAZ has less shares outstanding
The debt/assets ratio for LAZ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.36 indicates that LAZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LAZ (2.36) is better than 74.89% of its industry peers.
The Debt to FCF ratio of LAZ is 2.98, which is a good value as it means it would take LAZ, 2.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.98, LAZ is in the better half of the industry, outperforming 75.34% of the companies in the same industry.
LAZ has a Debt/Equity ratio of 3.27. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.27, LAZ is not doing good in the industry: 81.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.36 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
LAZ has a Current Ratio of 1.35. This is a normal value and indicates that LAZ is financially healthy and should not expect problems in meeting its short term obligations.
LAZ's Current ratio of 1.35 is in line compared to the rest of the industry. LAZ outperforms 57.85% of its industry peers.
A Quick Ratio of 1.35 indicates that LAZ should not have too much problems paying its short term obligations.
The Quick ratio of LAZ (1.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
LAZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 216.22%, which is quite impressive.
LAZ shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.47% yearly.
LAZ shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.94%.
The Revenue has been growing slightly by 2.56% on average over the past years.
EPS 1Y (TTM)216.22%
EPS 3Y-22.62%
EPS 5Y-6.47%
EPS Q2Q%18.18%
Revenue 1Y (TTM)20.94%
Revenue growth 3Y-2.59%
Revenue growth 5Y2.56%
Sales Q2Q%6.76%
3.2 Future
The Earnings Per Share is expected to grow by 31.51% on average over the next years. This is a very strong growth
LAZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.71% yearly.
EPS Next Y56.48%
EPS Next 2Y41.64%
EPS Next 3Y31.51%
EPS Next 5YN/A
Revenue Next Year12.83%
Revenue Next 2Y12.21%
Revenue Next 3Y10.71%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LAZ is valuated rather expensively with a Price/Earnings ratio of 20.91.
LAZ's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LAZ to the average of the S&P500 Index (29.35), we can say LAZ is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.37, the valuation of LAZ can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as LAZ.
LAZ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 13.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAZ is valued cheaply inside the industry as 82.96% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LAZ is valued cheaply inside the industry as 80.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.91 | ||
| EV/EBITDA | 11.71 |
4.3 Compensation for Growth
LAZ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LAZ may justify a higher PE ratio.
A more expensive valuation may be justified as LAZ's earnings are expected to grow with 31.51% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y41.64%
EPS Next 3Y31.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.20%, LAZ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.65, LAZ has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, LAZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
The dividend of LAZ decreases each year by -2.47%.
LAZ has been paying a dividend for at least 10 years, so it has a reliable track record.
LAZ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-2.47%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
LAZ pays out 65.57% of its income as dividend. This is not a sustainable payout ratio.
DP65.57%
EPS Next 2Y41.64%
EPS Next 3Y31.51%
48.94
+1.33 (+2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners72.79%
Inst Owner Change1.79%
Ins Owners0.79%
Ins Owner Change-1.3%
Market Cap5.52B
Analysts71.43
Price Target57.56 (17.61%)
Short Float %6.45%
Short Ratio7.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend2.01
Dividend Growth(5Y)-2.47%
DP65.57%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.42%
Min EPS beat(2)-4.93%
Max EPS beat(2)39.78%
EPS beat(4)3
Avg EPS beat(4)27.99%
Min EPS beat(4)-4.93%
Max EPS beat(4)48.31%
EPS beat(8)5
Avg EPS beat(8)8.03%
EPS beat(12)8
Avg EPS beat(12)8.53%
EPS beat(16)11
Avg EPS beat(16)11.06%
Revenue beat(2)1
Avg Revenue beat(2)1.5%
Min Revenue beat(2)-1.93%
Max Revenue beat(2)4.92%
Revenue beat(4)3
Avg Revenue beat(4)4.94%
Min Revenue beat(4)-1.93%
Max Revenue beat(4)10.64%
Revenue beat(8)5
Avg Revenue beat(8)2.77%
Revenue beat(12)8
Avg Revenue beat(12)4.07%
Revenue beat(16)12
Avg Revenue beat(16)6.03%
PT rev (1m)4.77%
PT rev (3m)-4.16%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-19.82%
EPS NY rev (1m)-4.98%
EPS NY rev (3m)-10.7%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-4.74%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 13.37 | ||
| P/S | 1.75 | ||
| P/FCF | 7.91 | ||
| P/OCF | 7.43 | ||
| P/B | 8.67 | ||
| P/tB | 22.74 | ||
| EV/EBITDA | 11.71 |
EPS(TTM)2.34
EY4.78%
EPS(NY)3.66
Fwd EY7.48%
FCF(TTM)6.18
FCFY12.64%
OCF(TTM)6.59
OCFY13.46%
SpS28
BVpS5.64
TBVpS2.15
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 42.91% | ||
| ROCE | 15.47% | ||
| ROIC | 10.37% | ||
| ROICexc | 20.26% | ||
| ROICexgc | 28.73% | ||
| OM | 14.29% | ||
| PM (TTM) | 8.65% | ||
| GM | 93.82% | ||
| FCFM | 22.08% |
ROA(3y)3.33%
ROA(5y)4.77%
ROE(3y)29.09%
ROE(5y)36.77%
ROIC(3y)6.49%
ROIC(5y)7.55%
ROICexc(3y)12%
ROICexc(5y)15.18%
ROICexgc(3y)16.01%
ROICexgc(5y)19.68%
ROCE(3y)10.39%
ROCE(5y)12.97%
ROICexcg growth 3Y-5.07%
ROICexcg growth 5Y-1.07%
ROICexc growth 3Y-9.8%
ROICexc growth 5Y-2.23%
OM growth 3Y-20.51%
OM growth 5Y-6.29%
PM growth 3Y-17.15%
PM growth 5Y-3.2%
GM growth 3Y0%
GM growth 5Y0.18%
F-Score9
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 2.98 | ||
| Debt/EBITDA | 4.27 | ||
| Cap/Depr | 125.4% | ||
| Cap/Sales | 1.44% | ||
| Interest Coverage | 5.34 | ||
| Cash Conversion | 152.37% | ||
| Profit Quality | 255.41% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 2.36 |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)102.56%
Cap/Depr(5y)117.06%
Cap/Sales(3y)1.44%
Cap/Sales(5y)1.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)216.22%
EPS 3Y-22.62%
EPS 5Y-6.47%
EPS Q2Q%18.18%
EPS Next Y56.48%
EPS Next 2Y41.64%
EPS Next 3Y31.51%
EPS Next 5YN/A
Revenue 1Y (TTM)20.94%
Revenue growth 3Y-2.59%
Revenue growth 5Y2.56%
Sales Q2Q%6.76%
Revenue Next Year12.83%
Revenue Next 2Y12.21%
Revenue Next 3Y10.71%
Revenue Next 5YN/A
EBIT growth 1Y244.73%
EBIT growth 3Y-22.57%
EBIT growth 5Y-3.9%
EBIT Next Year65.07%
EBIT Next 3Y17.52%
EBIT Next 5YN/A
FCF growth 1Y411.37%
FCF growth 3Y-5.5%
FCF growth 5Y1.88%
OCF growth 1Y351.12%
OCF growth 3Y-4.99%
OCF growth 5Y1.84%