10.08 USD
+0.06 (+0.6%)
10.08 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LZ. LZ was compared to 86 industry peers in the Professional Services industry. LZ has only an average score on both its financial health and profitability. LZ is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
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
With a Return On Assets value of 4.03%, LZ perfoms like the industry average, outperforming 56.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.01%, LZ is in line with its industry, outperforming 58.14% of the companies in the same industry.
The Return On Invested Capital of LZ (4.03%) 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
With a Profit Margin value of 3.05%, LZ perfoms like the industry average, outperforming 54.65% of the companies in the same industry.
In the last couple of years the Profit Margin of LZ has grown nicely.
The Operating Margin of LZ (1.57%) is worse than 60.47% 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 81.40% 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.
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.
LZ has a better debt/assets ratio than last year.
2.2 Solvency
LZ has an Altman-Z score of 1.54. This is a bad value and indicates that LZ is not financially healthy and even has some risk of bankruptcy.
LZ has a worse Altman-Z score (1.54) than 67.44% 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 | 1.54 |
ROIC/WACC0.46
WACC8.79%
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.
LZ's Current ratio of 0.84 is on the low side compared to the rest of the industry. LZ is outperformed by 82.56% 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 82.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.61% over the past year.
The Earnings Per Share has been growing by 40.44% on average over the past years. This is a very strong growth
Looking at the last year, LZ shows a small growth in Revenue. The Revenue has grown by 7.17% in the last 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
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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.75, which indicates a correct valuation of LZ.
72.09% of the companies in the same industry are more expensive than LZ, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.57. LZ is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.93 indicates a correct valuation of LZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LZ indicates a somewhat cheap valuation: LZ is cheaper than 74.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.04. LZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 13.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZ is valued a bit more expensive than 63.95% of the companies in the same industry.
75.58% of the companies in the same industry are more expensive than LZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.65 | ||
| EV/EBITDA | 28.26 |
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)0.92
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% |
10.08
+0.06 (+0.6%)
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 Cap1.79B
Revenue(TTM)727.48M
Net Income(TTM)22.22M
Analysts77.78
Price Target12.33 (22.32%)
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)-0.37%
EPS NQ rev (3m)-6.3%
EPS NY rev (1m)-6.35%
EPS NY rev (3m)-6.35%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)4.69%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 13.93 | ||
| P/S | 2.46 | ||
| P/FCF | 16.65 | ||
| P/OCF | 9.57 | ||
| P/B | 8.85 | ||
| P/tB | 42.53 | ||
| EV/EBITDA | 28.26 |
EPS(TTM)0.64
EY6.35%
EPS(NY)0.72
Fwd EY7.18%
FCF(TTM)0.61
FCFY6.01%
OCF(TTM)1.05
OCFY10.45%
SpS4.1
BVpS1.14
TBVpS0.24
PEG (NY)0.92
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 | 1.54 |
F-Score6
WACC8.79%
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 15.75 and the Price/Book (PB) ratio is 8.85.