9.31 USD
-0.03 (-0.32%)
9.31 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LZ. LZ was compared to 87 industry peers in the Professional Services industry. LZ has an average financial health and profitability rating. LZ is not priced too expensively while it is growing strongly. 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.
LZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.03%, LZ perfoms like the industry average, outperforming 57.47% of the companies in the same industry.
LZ has a Return On Equity of 11.01%. This is comparable to the rest of the industry: LZ outperforms 58.62% of its industry peers.
LZ has a Return On Invested Capital of 4.03%. This is comparable to the rest of the industry: LZ outperforms 45.98% of its industry peers.
| 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
The Profit Margin of LZ (3.05%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LZ has grown nicely.
LZ's Operating Margin of 1.57% is on the low side compared to the rest of the industry. LZ is outperformed by 60.92% of its industry peers.
In the last couple of years the Operating Margin of LZ has declined.
Looking at the Gross Margin, with a value of 65.69%, LZ belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
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.
LZ has less shares outstanding than it did 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 1.32, we must say that LZ is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.32, LZ is not doing good in the industry: 67.82% of the companies in the same industry are doing better.
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 | 1.32 |
ROIC/WACC0.47
WACC8.64%
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.
Looking at the Current ratio, with a value of 0.84, LZ is doing worse than 81.61% of the companies in the same industry.
LZ has a Quick 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.
With a Quick ratio value of 0.84, LZ is not doing good in the industry: 81.61% 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.
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
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 Y25%
EPS Next 2Y20.37%
EPS Next 3Y16.04%
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
LZ is valuated correctly with a Price/Earnings ratio of 14.55.
72.41% 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 26.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.68, the valuation of LZ can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LZ indicates a somewhat cheap valuation: LZ is cheaper than 77.01% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LZ to the average of the S&P500 Index (36.12), we can say LZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 11.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LZ indicates a slightly more expensive valuation: LZ is more expensive than 64.37% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LZ is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.38 | ||
| EV/EBITDA | 25.95 |
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 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)0.36
EPS Next 2Y20.37%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
LZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.31
-0.03 (-0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners67.2%
Inst Owner Change6.25%
Ins Owners0.59%
Ins Owner Change-8.84%
Market Cap1.65B
Revenue(TTM)727.48M
Net Income(TTM)22.22M
Analysts75.56
Price Target12.58 (35.12%)
Short Float %8.92%
Short Ratio5.26
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)9.63%
PT rev (3m)30.97%
EPS NQ rev (1m)-5.95%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)0%
EPS NY rev (3m)8.24%
Revenue NQ rev (1m)4.71%
Revenue NQ rev (3m)4.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 11.68 | ||
| P/S | 2.27 | ||
| P/FCF | 15.38 | ||
| P/OCF | 8.84 | ||
| P/B | 8.17 | ||
| P/tB | 39.28 | ||
| EV/EBITDA | 25.95 |
EPS(TTM)0.64
EY6.87%
EPS(NY)0.8
Fwd EY8.56%
FCF(TTM)0.61
FCFY6.5%
OCF(TTM)1.05
OCFY11.31%
SpS4.1
BVpS1.14
TBVpS0.24
PEG (NY)0.58
PEG (5Y)0.36
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 | 1.32 |
F-Score6
WACC8.64%
ROIC/WACC0.47
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 Y25%
EPS Next 2Y20.37%
EPS Next 3Y16.04%
EPS Next 5Y12.68%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%12.79%
Revenue Next Year8.01%
Revenue Next 2Y7.65%
Revenue Next 3Y7.17%
Revenue Next 5Y11.98%
EBIT growth 1Y-71.34%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year50.37%
EBIT Next 3Y24.89%
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 6 / 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 14.55 and the Price/Book (PB) ratio is 8.17.