9.54 USD
+0.16 (+1.71%)
9.54 USD
0 (0%)
Taking everything into account, LZ scores 5 out of 10 in our fundamental rating. LZ was compared to 87 industry peers in the Professional Services industry. LZ has only an average score on both its financial health and profitability. 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.
LZ had a positive operating cash flow in the past year.
In multiple years LZ reported negative net income over the last 5 years.
In the past 5 years LZ always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LZ (4.03%) is comparable to the rest of the industry.
LZ's Return On Equity of 11.01% is in line compared to the rest of the industry. LZ outperforms 58.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.03%, LZ is in line with its industry, outperforming 44.83% of the companies in the same 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 has a Profit Margin (3.05%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LZ has grown nicely.
LZ has a Operating Margin of 1.57%. This is in the lower half of the industry: LZ underperforms 60.92% of its industry peers.
In the last couple of years the Operating Margin of LZ has declined.
LZ has a Gross Margin of 65.69%. This is amongst the best in the industry. LZ outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LZ is destroying value.
The number of shares outstanding for LZ has been reduced compared to 1 year ago.
LZ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LZ has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that LZ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LZ (1.39) is worse than 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 | 1.39 |
ROIC/WACC0.46
WACC8.78%
2.3 Liquidity
LZ has a Current Ratio of 0.84. This is a bad value and indicates that LZ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of LZ (0.84) is worse than 82.76% of its industry peers.
A Quick Ratio of 0.84 indicates that LZ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, LZ is doing worse than 82.76% of the companies in the same industry.
| 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.
Measured over the past years, LZ shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.44% on average per year.
The Revenue has been growing slightly by 7.17% in the past year.
The Revenue has been growing by 10.80% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 12.68% on average over the next years. This is quite good.
Based on estimates for the next years, LZ will show a quite strong growth in Revenue. The Revenue will grow by 11.98% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 14.91, the valuation of LZ can be described as correct.
Based on the Price/Earnings ratio, LZ is valued a bit cheaper than 71.26% of the companies in the same industry.
LZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 13.18, LZ is valued correctly.
Based on the Price/Forward Earnings ratio, LZ is valued a bit cheaper than the industry average as 71.26% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.56. LZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 13.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZ is valued a bit more expensive than the industry average as 64.37% of the companies are valued more cheaply.
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 | 15.76 | ||
| EV/EBITDA | 26.7 |
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 12.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)0.37
EPS Next 2Y14.72%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
No dividends for LZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.54
+0.16 (+1.71%)
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 Cap1.69B
Revenue(TTM)727.48M
Net Income(TTM)22.22M
Analysts77.78
Price Target12.33 (29.25%)
Short Float %7.02%
Short Ratio4.61
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)-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)-3.36%
EPS NY rev (1m)-6.35%
EPS NY rev (3m)-7.62%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)4.23%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 13.18 | ||
| P/S | 2.32 | ||
| P/FCF | 15.76 | ||
| P/OCF | 9.06 | ||
| P/B | 8.38 | ||
| P/tB | 40.25 | ||
| EV/EBITDA | 26.7 |
EPS(TTM)0.64
EY6.71%
EPS(NY)0.72
Fwd EY7.59%
FCF(TTM)0.61
FCFY6.35%
OCF(TTM)1.05
OCFY11.04%
SpS4.1
BVpS1.14
TBVpS0.24
PEG (NY)0.87
PEG (5Y)0.37
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 | 1.39 |
F-Score6
WACC8.78%
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 14.91 and the Price/Book (PB) ratio is 8.38.