LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis
USA - NASDAQ:LZ - US52466B1035 - Common Stock
10.42 USD
-0.11 (-1.04%)
10.42 USD
0 (0%)
LZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make LZ suitable for growth investing!
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 5.30%, LZ is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
The Return On Equity of LZ (14.82%) is better than 65.85% of its industry peers.
LZ has a Return On Invested Capital of 9.86%. This is in the better half of the industry: LZ outperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 14.82% | ||
| ROIC | 9.86% |
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
The Profit Margin of LZ (4.07%) 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 3.83%, LZ is in line with its industry, outperforming 45.12% of the companies in the same industry.
LZ's Operating Margin has declined in the last couple of years.
The Gross Margin of LZ (65.71%) is better than 76.83% 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 | 3.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 65.71% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LZ is still creating some value.
The number of shares outstanding for LZ has been reduced compared to 1 year ago.
Compared to 5 years ago, LZ has less shares outstanding
The debt/assets ratio for LZ has been reduced compared to a year ago.
2.2 Solvency
LZ has an Altman-Z score of 1.77. This is a bad value and indicates that LZ is not financially healthy and even has some risk of bankruptcy.
LZ's Altman-Z score of 1.77 is on the low side compared to the rest of the industry. LZ is outperformed by 68.29% 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 | 1.77 |
ROIC/WACC1.13
WACC8.69%
2.3 Liquidity
LZ has a Current Ratio of 0.78. This is a bad value and indicates that LZ is not financially healthy enough and could expect problems in meeting its short term obligations.
LZ's Current ratio of 0.78 is on the low side compared to the rest of the industry. LZ is outperformed by 84.15% of its industry peers.
A Quick Ratio of 0.78 indicates that LZ may have some problems paying its short term obligations.
LZ's Quick ratio of 0.78 is on the low side compared to the rest of the industry. LZ is outperformed by 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
LZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.45%, 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
LZ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.19%.
The Revenue has been growing by 10.80% on average over the past years. This is quite good.
EPS 1Y (TTM)45.45%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%50%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%8.54%
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.
LZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.98% yearly.
EPS Next Y26.72%
EPS Next 2Y20.96%
EPS Next 3Y16.68%
EPS Next 5Y12.68%
Revenue Next Year8.01%
Revenue Next 2Y7.65%
Revenue Next 3Y7.17%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.28, which indicates a correct valuation of LZ.
Based on the Price/Earnings ratio, LZ is valued a bit cheaper than 67.07% of the companies in the same industry.
LZ is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.95, the valuation of LZ can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LZ indicates a somewhat cheap valuation: LZ is cheaper than 75.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, LZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.28 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZ is valued a bit more expensive than 62.20% of the companies in the same industry.
LZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.82 | ||
| EV/EBITDA | 23.6 |
4.3 Compensation for Growth
LZ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LZ's earnings are expected to grow with 16.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)0.4
EPS Next 2Y20.96%
EPS Next 3Y16.68%
5. Dividend
5.1 Amount
LZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.42
-0.11 (-1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners62.28%
Inst Owner Change6.91%
Ins Owners0.51%
Ins Owner Change-5.39%
Market Cap1.88B
Analysts75.56
Price Target11.48 (10.17%)
Short Float %8.1%
Short Ratio4.64
Dividend
| Industry Rank | Sector 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)0
Avg EPS beat(2)-2.15%
Min EPS beat(2)-2.24%
Max EPS beat(2)-2.06%
EPS beat(4)2
Avg EPS beat(4)6%
Min EPS beat(4)-2.24%
Max EPS beat(4)16.09%
EPS beat(8)5
Avg EPS beat(8)8.87%
EPS beat(12)8
Avg EPS beat(12)11.17%
EPS beat(16)10
Avg EPS beat(16)29.68%
Revenue beat(2)2
Avg Revenue beat(2)1.35%
Min Revenue beat(2)0.41%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)5
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)-0.8%
PT rev (1m)19.47%
PT rev (3m)19.47%
EPS NQ rev (1m)1.14%
EPS NQ rev (3m)19.55%
EPS NY rev (1m)9.72%
EPS NY rev (3m)5.17%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)4.9%
Revenue NY rev (1m)2.69%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.28 | ||
| Fwd PE | 12.95 | ||
| P/S | 2.66 | ||
| P/FCF | 22.82 | ||
| P/OCF | 11.45 | ||
| P/B | 9.68 | ||
| P/tB | 57.69 | ||
| EV/EBITDA | 23.6 |
EPS(TTM)0.64
EY6.14%
EPS(NY)0.8
Fwd EY7.72%
FCF(TTM)0.46
FCFY4.38%
OCF(TTM)0.91
OCFY8.73%
SpS3.92
BVpS1.08
TBVpS0.18
PEG (NY)0.61
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 14.82% | ||
| ROCE | 12.48% | ||
| ROIC | 9.86% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 3.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 65.71% | ||
| FCFM | 11.66% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 184.92% | ||
| Cap/Sales | 11.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 230.34% | ||
| Profit Quality | 286.17% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.77 |
F-Score7
WACC8.69%
ROIC/WACC1.13
Cap/Depr(3y)117.02%
Cap/Depr(5y)169.46%
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)45.45%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%50%
EPS Next Y26.72%
EPS Next 2Y20.96%
EPS Next 3Y16.68%
EPS Next 5Y12.68%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%8.54%
Revenue Next Year8.01%
Revenue Next 2Y7.65%
Revenue Next 3Y7.17%
Revenue Next 5Y11.98%
EBIT growth 1Y-3.7%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year48.23%
EBIT Next 3Y23.36%
EBIT Next 5Y22.36%
FCF growth 1Y-6.13%
FCF growth 3YN/A
FCF growth 5Y23.81%
OCF growth 1Y32.93%
OCF growth 3Y35.81%
OCF growth 5Y20.81%