10.17 USD
+0.11 (+1.09%)
10.42 USD
+0.25 (+2.46%)
We assign a fundamental rating of 5 out of 10 to LZ. LZ was compared to 87 industry peers in the Professional Services industry. Both the profitability and the financial health of LZ get a neutral evaluation. Nothing too spectacular is happening here. LZ is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
LZ had positive earnings in the past year.
In the past year LZ had a positive cash flow from operations.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.03%, LZ is in line with its industry, outperforming 57.47% of the companies in the same industry.
LZ has a Return On Equity (11.01%) which is in line with its industry peers.
LZ has a Return On Invested Capital (4.03%) which is comparable to the rest of the industry.
| Industry Rank | Sector 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
1.3 Margins
LZ's Profit Margin of 3.05% is in line compared to the rest of the industry. LZ outperforms 55.17% of its industry peers.
In the last couple of years the Profit Margin of LZ has grown nicely.
LZ has a worse Operating Margin (1.57%) than 60.92% of its industry peers.
In the last couple of years the Operating Margin of LZ has declined.
LZ has a better Gross Margin (65.69%) than 80.46% 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 | 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%
2. Health
2.1 Basic Checks
LZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LZ has less shares outstanding than it did 1 year ago.
LZ has less shares outstanding than it did 5 years ago.
LZ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that LZ is in the distress zone and has some risk of bankruptcy.
LZ has a Altman-Z score of 1.59. This is in the lower half of the industry: LZ underperforms 66.67% 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 | 1.59 |
ROIC/WACC0.46
WACC8.82%
2.3 Liquidity
A Current Ratio of 0.84 indicates that LZ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, LZ is doing worse than 82.76% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that LZ may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, LZ is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
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.
LZ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.44% yearly.
LZ shows a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
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
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.
The Revenue is expected to grow by 11.98% on average over the next years. This is quite good.
EPS Next Y17.07%
EPS Next 2Y14.72%
EPS Next 3Y12.49%
EPS Next 5Y12.68%
Revenue Next Year10.23%
Revenue Next 2Y8.64%
Revenue Next 3Y7.35%
Revenue Next 5Y11.98%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.89, which indicates a correct valuation of LZ.
70.11% of the companies in the same industry are more expensive than LZ, based on the Price/Earnings ratio.
LZ is valuated rather cheaply when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
LZ is valuated correctly with a Price/Forward Earnings ratio of 14.05.
Based on the Price/Forward Earnings ratio, LZ is valued a bit cheaper than 72.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LZ to the average of the S&P500 Index (23.66), we can say LZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
64.37% of the companies in the same industry are cheaper than LZ, based on the Enterprise Value to EBITDA ratio.
LZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LZ is cheaper than 74.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.8 | ||
| EV/EBITDA | 28.75 |
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.
A more expensive valuation may be justified as LZ's earnings are expected to grow with 12.49% in the coming years.
PEG (NY)0.93
PEG (5Y)0.39
EPS Next 2Y14.72%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
LZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
10.17
+0.11 (+1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners75%
Inst Owner Change6.26%
Ins Owners0.41%
Ins Owner Change-9.99%
Market Cap1.80B
Revenue(TTM)727.48M
Net Income(TTM)22.22M
Analysts77.78
Price Target12.33 (21.24%)
Short Float %6.09%
Short Ratio4.09
Dividend
| Industry Rank | Sector 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)7.41%
PT rev (3m)7.41%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-6.3%
EPS NY rev (1m)-6.35%
EPS NY rev (3m)-7.62%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)4.69%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 14.05 | ||
| P/S | 2.48 | ||
| P/FCF | 16.8 | ||
| P/OCF | 9.66 | ||
| P/B | 8.93 | ||
| P/tB | 42.91 | ||
| EV/EBITDA | 28.75 |
EPS(TTM)0.64
EY6.29%
EPS(NY)0.72
Fwd EY7.12%
FCF(TTM)0.61
FCFY5.95%
OCF(TTM)1.05
OCFY10.35%
SpS4.1
BVpS1.14
TBVpS0.24
PEG (NY)0.93
PEG (5Y)0.39
Graham Number4.05
Profitability
| Industry Rank | Sector 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 | 14.75% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 184.3% | ||
| Cap/Sales | 10.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 342.75% | ||
| Profit Quality | 482.97% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.59 |
F-Score6
WACC8.82%
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 Y17.07%
EPS Next 2Y14.72%
EPS Next 3Y12.49%
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 2Y8.64%
Revenue Next 3Y7.35%
Revenue Next 5Y11.98%
EBIT growth 1Y-71.34%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year52.16%
EBIT Next 3Y24.01%
EBIT Next 5Y22.36%
FCF growth 1Y21.28%
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.
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 4 / 10.
What are the PE and PB ratios of LEGALZOOMCOM INC (LZ) stock?
The Price/Earnings (PE) ratio for LEGALZOOMCOM INC (LZ) is 15.89 and the Price/Book (PB) ratio is 8.93.