LEGALZOOMCOM INC (LZ) Fundamental Analysis & Valuation
NASDAQ:LZ • US52466B1035
Current stock price
6.17 USD
+0.01 (+0.16%)
At close:
6.17 USD
0 (0%)
After Hours:
This LZ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. LZ Profitability Analysis
1.1 Basic Checks
- In the past year LZ was profitable.
- LZ had a positive operating cash flow in the past year.
- In multiple years LZ reported negative net income over the last 5 years.
- Each year in the past 5 years LZ had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of LZ (3.02%) is comparable to the rest of the industry.
- The Return On Equity of LZ (8.98%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 3.49%, LZ is in line with its industry, outperforming 42.53% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LZ is in line with the industry average of 12.78%.
- The last Return On Invested Capital (3.49%) for LZ is well below the 3 year average (11.40%), which needs to be investigated, but indicates that LZ had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 8.98% | ||
| ROIC | 3.49% |
ROA(3y)4.72%
ROA(5y)-4.62%
ROE(3y)16.46%
ROE(5y)-7.97%
ROIC(3y)11.4%
ROIC(5y)N/A
1.3 Margins
- LZ has a Profit Margin (2.04%) which is in line with its industry peers.
- LZ's Profit Margin has improved in the last couple of years.
- LZ has a Operating Margin of 1.52%. This is comparable to the rest of the industry: LZ outperforms 40.23% of its industry peers.
- In the last couple of years the Operating Margin of LZ has declined.
- LZ has a better Gross Margin (65.88%) than 81.61% 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 | 1.52% | ||
| PM (TTM) | 2.04% | ||
| GM | 65.88% |
OM growth 3YN/A
OM growth 5Y-33.33%
PM growth 3YN/A
PM growth 5Y5.93%
GM growth 3Y-0.04%
GM growth 5Y-0.39%
2. LZ Health Analysis
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 increased compared to 1 year ago.
- Compared to 5 years ago, LZ has less shares outstanding
- Compared to 1 year ago, LZ has an improved debt to assets ratio.
2.2 Solvency
- LZ has an Altman-Z score of 0.15. This is a bad value and indicates that LZ is not financially healthy and even has some risk of bankruptcy.
- LZ has a Altman-Z score of 0.15. This is in the lower half of the industry: LZ underperforms 74.71% of its industry peers.
- There is no outstanding debt for LZ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 0.15 |
ROIC/WACC0.39
WACC8.92%
2.3 Liquidity
- LZ has a Current Ratio of 0.76. 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 has a worse Current ratio (0.76) than 85.06% of its industry peers.
- A Quick Ratio of 0.76 indicates that LZ may have some problems paying its short term obligations.
- The Quick ratio of LZ (0.76) is worse than 83.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. LZ Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 12.73% over the past year.
- Measured over the past years, LZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.86% on average per year.
- Looking at the last year, LZ shows a quite strong growth in Revenue. The Revenue has grown by 10.88% in the last year.
- The Revenue has been growing by 9.95% on average over the past years. This is quite good.
EPS 1Y (TTM)12.73%
EPS 3Y60.48%
EPS 5Y15.86%
EPS Q2Q%-10.53%
Revenue 1Y (TTM)10.88%
Revenue growth 3Y6.84%
Revenue growth 5Y9.95%
Sales Q2Q%17.66%
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 12.82% on average per year.
- The Revenue is expected to grow by 12.01% on average over the next years. This is quite good.
EPS Next Y23.52%
EPS Next 2Y16.83%
EPS Next 3Y10.63%
EPS Next 5Y12.82%
Revenue Next Year9.06%
Revenue Next 2Y8.08%
Revenue Next 3Y6.94%
Revenue Next 5Y12.01%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 accelerating.
4. LZ Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.95, which indicates a very decent valuation of LZ.
- LZ's Price/Earnings ratio is rather cheap when compared to the industry. LZ is cheaper than 80.46% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.70, LZ is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.06, the valuation of LZ can be described as reasonable.
- LZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. LZ is cheaper than 88.51% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, LZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 8.06 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LZ is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, LZ is valued cheaply inside the industry as 87.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 15.53 |
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)0.42
PEG (5Y)0.63
EPS Next 2Y16.83%
EPS Next 3Y10.63%
5. LZ Dividend Analysis
5.1 Amount
- No dividends for LZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LZ Fundamentals: All Metrics, Ratios and Statistics
6.17
+0.01 (+0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)05-05 2026-05-05
Inst Owners76.04%
Inst Owner Change-2.02%
Ins Owners0.38%
Ins Owner Change11.39%
Market Cap1.07B
Revenue(TTM)756.04M
Net Income(TTM)15.43M
Analysts77.78
Price Target9.01 (46.03%)
Short Float %11.01%
Short Ratio4.43
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)-9.22%
Min EPS beat(2)-11.69%
Max EPS beat(2)-6.75%
EPS beat(4)0
Avg EPS beat(4)-5.69%
Min EPS beat(4)-11.69%
Max EPS beat(4)-2.06%
EPS beat(8)3
Avg EPS beat(8)0.02%
EPS beat(12)6
Avg EPS beat(12)5.82%
EPS beat(16)9
Avg EPS beat(16)15.64%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)0.75%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)5
Avg Revenue beat(12)-0.29%
Revenue beat(16)7
Avg Revenue beat(16)-0.43%
PT rev (1m)-26.9%
PT rev (3m)-26.9%
EPS NQ rev (1m)-19.8%
EPS NQ rev (3m)-21.62%
EPS NY rev (1m)8.95%
EPS NY rev (3m)5.8%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)2.16%
Revenue NY rev (1m)1.95%
Revenue NY rev (3m)1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 8.06 | ||
| P/S | 1.41 | ||
| P/FCF | 7.21 | ||
| P/OCF | 5.99 | ||
| P/B | 6.21 | ||
| P/tB | 81.91 | ||
| EV/EBITDA | 15.53 |
EPS(TTM)0.62
EY10.05%
EPS(NY)0.77
Fwd EY12.41%
FCF(TTM)0.86
FCFY13.86%
OCF(TTM)1.03
OCFY16.7%
SpS4.37
BVpS0.99
TBVpS0.08
PEG (NY)0.42
PEG (5Y)0.63
Graham Number3.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 8.98% | ||
| ROCE | 5.95% | ||
| ROIC | 3.49% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 1.52% | ||
| PM (TTM) | 2.04% | ||
| GM | 65.88% | ||
| FCFM | 19.57% |
ROA(3y)4.72%
ROA(5y)-4.62%
ROE(3y)16.46%
ROE(5y)-7.97%
ROIC(3y)11.4%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.48%
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-33.33%
PM growth 3YN/A
PM growth 5Y5.93%
GM growth 3Y-0.04%
GM growth 5Y-0.39%
F-Score7
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 68.62% | ||
| Cap/Sales | 4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 320.41% | ||
| Profit Quality | 958.84% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.15 |
F-Score7
WACC8.92%
ROIC/WACC0.39
Cap/Depr(3y)98.43%
Cap/Depr(5y)175.29%
Cap/Sales(3y)4.67%
Cap/Sales(5y)6.35%
Profit Quality(3y)652.29%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.73%
EPS 3Y60.48%
EPS 5Y15.86%
EPS Q2Q%-10.53%
EPS Next Y23.52%
EPS Next 2Y16.83%
EPS Next 3Y10.63%
EPS Next 5Y12.82%
Revenue 1Y (TTM)10.88%
Revenue growth 3Y6.84%
Revenue growth 5Y9.95%
Sales Q2Q%17.66%
Revenue Next Year9.06%
Revenue Next 2Y8.08%
Revenue Next 3Y6.94%
Revenue Next 5Y12.01%
EBIT growth 1Y-72.42%
EBIT growth 3YN/A
EBIT growth 5Y-26.7%
EBIT Next Year35.4%
EBIT Next 3Y16.88%
EBIT Next 5Y19.38%
FCF growth 1Y48%
FCF growth 3Y51.06%
FCF growth 5Y12.65%
OCF growth 1Y31.38%
OCF growth 3Y34.13%
OCF growth 5Y13.88%
LEGALZOOMCOM INC / LZ Fundamental Analysis 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 5 / 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 23.52% in the next year.