LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis

NASDAQ:LZ • US52466B1035

6.87 USD
+0.21 (+3.15%)
At close: Feb 13, 2026
6.9078 USD
+0.04 (+0.55%)
After Hours: 2/13/2026, 8:22:26 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, LZ scores 5 out of 10 in our fundamental rating. LZ was compared to 88 industry peers in the Professional Services industry. LZ has an average financial health and profitability rating. LZ is evaluated to be cheap and growing strongly. This does not happen too often!


Dividend Valuation Growth Profitability Health

4

1. Profitability

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.
  • In the past 5 years LZ always reported a positive cash flow from operatings.
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 0 50M -50M 100M -100M

1.2 Ratios

  • LZ's Return On Assets of 4.03% is in line compared to the rest of the industry. LZ outperforms 55.68% of its industry peers.
  • LZ's Return On Equity of 11.01% is in line compared to the rest of the industry. LZ outperforms 55.68% of its industry peers.
  • LZ has a Return On Invested Capital (4.03%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA 4.03%
ROE 11.01%
ROIC 4.03%
ROA(3y)-0.29%
ROA(5y)-4.65%
ROE(3y)2.06%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
LZ Yearly ROA, ROE, ROICLZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 50 -50 100

1.3 Margins

  • The Profit Margin of LZ (3.05%) is comparable to the rest of the industry.
  • LZ's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 1.57%, LZ is doing worse than 60.23% of the companies in the same industry.
  • LZ's Operating Margin has declined in the last couple of years.
  • LZ has a better Gross Margin (65.69%) than 82.95% of its industry peers.
  • LZ's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 1.57%
PM (TTM) 3.05%
GM 65.69%
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%
LZ Yearly Profit, Operating, Gross MarginsLZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 40 60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LZ is destroying value.
  • Compared to 1 year ago, LZ has less shares outstanding
  • 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.
LZ Yearly Shares OutstandingLZ Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 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 100M 200M 300M 400M 500M

2.2 Solvency

  • Based on the Altman-Z score of 0.58, we must say that LZ is in the distress zone and has some risk of bankruptcy.
  • LZ has a worse Altman-Z score (0.58) than 71.59% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 0.58
ROIC/WACC0.46
WACC8.68%
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 0 200M -200M 400M -400M

2.3 Liquidity

  • A Current Ratio of 0.84 indicates that LZ may have some problems paying its short term obligations.
  • LZ has a worse Current ratio (0.84) than 82.95% of its industry peers.
  • A Quick Ratio of 0.84 indicates that LZ may have some problems paying its short term obligations.
  • LZ has a Quick ratio of 0.84. This is amonst the worse of the industry: LZ underperforms 82.95% of its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.84
LZ Yearly Current Assets VS Current LiabilitesLZ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

More info and screens

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

7

3. Growth

3.1 Past

  • LZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.61%, which is quite impressive.
  • The Earnings Per Share has been growing by 40.44% on average over the past years. This is a very strong growth
  • The Revenue has been growing slightly by 7.17% 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)7.17%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%12.79%

3.2 Future

  • LZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.68% yearly.
  • The Revenue is expected to grow by 11.98% on average over the next years. This is quite good.
EPS Next Y17.65%
EPS Next 2Y13.05%
EPS Next 3Y10.48%
EPS Next 5Y12.68%
Revenue Next Year10.23%
Revenue Next 2Y8.58%
Revenue Next 3Y7.64%
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.
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. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.73, which indicates a very decent valuation of LZ.
  • Based on the Price/Earnings ratio, LZ is valued cheaper than 80.68% of the companies in the same industry.
  • LZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.68.
  • With a Price/Forward Earnings ratio of 9.77, the valuation of LZ can be described as very reasonable.
  • LZ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LZ is cheaper than 79.55% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, LZ is valued rather cheaply.
Industry RankSector Rank
PE 10.73
Fwd PE 9.77
LZ Price Earnings VS Forward Price EarningsLZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • LZ's Enterprise Value to EBITDA is on the same level as the industry average.
  • 89.77% 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 7.82
EV/EBITDA 18.01
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)0.61
PEG (5Y)0.27
EPS Next 2Y13.05%
EPS Next 3Y10.48%

More info and screens

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

0

5. Dividend

5.1 Amount

  • LZ does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

LEGALZOOMCOM INC

NASDAQ:LZ (2/13/2026, 8:22:26 PM)

After market: 6.9078 +0.04 (+0.55%)

6.87

+0.21 (+3.15%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-05
Earnings (Next)02-19
Inst Owners74.89%
Inst Owner Change-1.28%
Ins Owners0.41%
Ins Owner Change-6.15%
Market Cap1.22B
Revenue(TTM)727.48M
Net Income(TTM)22.22M
Analysts77.78
Price Target12.33 (79.48%)
Short Float %9.48%
Short Ratio5.44
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)-6.88%
Min EPS beat(2)-11.69%
Max EPS beat(2)-2.06%
EPS beat(4)1
Avg EPS beat(4)0.02%
Min EPS beat(4)-11.69%
Max EPS beat(4)16.09%
EPS beat(8)4
Avg EPS beat(8)3.63%
EPS beat(12)7
Avg EPS beat(12)9.27%
EPS beat(16)10
Avg EPS beat(16)33.34%
Revenue beat(2)2
Avg Revenue beat(2)1.52%
Min Revenue beat(2)0.75%
Max Revenue beat(2)2.3%
Revenue beat(4)3
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.85%
Revenue beat(12)5
Avg Revenue beat(12)-0.43%
Revenue beat(16)7
Avg Revenue beat(16)-0.68%
PT rev (1m)0%
PT rev (3m)7.41%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0.5%
EPS NY rev (3m)-5.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
Industry RankSector Rank
PE 10.73
Fwd PE 9.77
P/S 1.67
P/FCF 7.82
P/OCF 6.52
P/B 6.03
P/tB 28.99
EV/EBITDA 18.01
EPS(TTM)0.64
EY9.32%
EPS(NY)0.7
Fwd EY10.23%
FCF(TTM)0.88
FCFY12.79%
OCF(TTM)1.05
OCFY15.33%
SpS4.1
BVpS1.14
TBVpS0.24
PEG (NY)0.61
PEG (5Y)0.27
Graham Number4.05
Profitability
Industry RankSector Rank
ROA 4.03%
ROE 11.01%
ROCE 5.1%
ROIC 4.03%
ROICexc N/A
ROICexgc N/A
OM 1.57%
PM (TTM) 3.05%
GM 65.69%
FCFM 21.42%
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-Score6
Asset Turnover1.32
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 71.68%
Cap/Sales 4.24%
Interest Coverage 250
Cash Conversion 342.75%
Profit Quality 701.06%
Current Ratio 0.84
Quick Ratio 0.84
Altman-Z 0.58
F-Score6
WACC8.68%
ROIC/WACC0.46
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)30.61%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%0%
EPS Next Y17.65%
EPS Next 2Y13.05%
EPS Next 3Y10.48%
EPS Next 5Y12.68%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%12.79%
Revenue Next Year10.23%
Revenue Next 2Y8.58%
Revenue Next 3Y7.64%
Revenue Next 5Y11.98%
EBIT growth 1Y-71.34%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year52.16%
EBIT Next 3Y23.79%
EBIT Next 5Y22.36%
FCF growth 1Y76.05%
FCF growth 3YN/A
FCF growth 5Y23.81%
OCF growth 1Y51.01%
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.


Can you provide the valuation status for LEGALZOOMCOM INC?

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


What is the profitability of LZ stock?

LEGALZOOMCOM INC (LZ) has a profitability rating of 4 / 10.


Can you provide the expected EPS growth for LZ stock?

The Earnings per Share (EPS) of LEGALZOOMCOM INC (LZ) is expected to grow by 17.65% in the next year.