9.38 USD
-0.07 (-0.74%)
9.38 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 overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year LZ was profitable.
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
LZ has a Return On Assets of 4.03%. This is comparable to the rest of the industry: LZ outperforms 57.47% of its industry peers.
Looking at the Return On Equity, with a value of 11.01%, LZ is in line with its industry, outperforming 58.62% of the companies in the same industry.
LZ has a Return On Invested Capital (4.03%) which is in line with 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
LZ has a Profit Margin (3.05%) which is in line with its industry peers.
In the last couple of years the Profit Margin of LZ has grown nicely.
Looking at the Operating Margin, with a value of 1.57%, LZ is doing worse than 60.92% of the companies in the same industry.
LZ's Operating Margin has declined in the last couple of years.
LZ has a Gross Margin of 65.69%. This is amongst the best in the industry. LZ outperforms 80.46% of its industry peers.
LZ's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, LZ has less shares outstanding
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 1.35. 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 1.35 is on the low side compared to the rest of the industry. LZ is outperformed by 66.67% 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 | 1.35 |
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.
The Quick ratio of LZ (0.84) is worse than 82.76% of its industry peers.
| 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.
LZ shows a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
LZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.80% yearly.
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
The Price/Earnings ratio is 14.66, which indicates a correct valuation of LZ.
Based on the Price/Earnings ratio, LZ is valued a bit cheaper than 73.56% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, LZ is valued a bit cheaper.
LZ is valuated correctly with a Price/Forward Earnings ratio of 12.96.
72.41% of the companies in the same industry are more expensive than LZ, based on the Price/Forward Earnings ratio.
LZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
63.22% of the companies in the same industry are cheaper than LZ, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LZ is valued a bit cheaper than the industry average as 74.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.49 | ||
| EV/EBITDA | 26.18 |
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.
LZ's earnings are expected to grow with 12.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)0.36
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 | N/A |
9.38
-0.07 (-0.74%)
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 Cap1.66B
Revenue(TTM)727.48M
Net Income(TTM)22.22M
Analysts77.78
Price Target12.33 (31.45%)
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 | 14.66 | ||
| Fwd PE | 12.96 | ||
| P/S | 2.29 | ||
| P/FCF | 15.49 | ||
| P/OCF | 8.91 | ||
| P/B | 8.23 | ||
| P/tB | 39.58 | ||
| EV/EBITDA | 26.18 |
EPS(TTM)0.64
EY6.82%
EPS(NY)0.72
Fwd EY7.72%
FCF(TTM)0.61
FCFY6.46%
OCF(TTM)1.05
OCFY11.23%
SpS4.1
BVpS1.14
TBVpS0.24
PEG (NY)0.86
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 | 1.35 |
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 14.66 and the Price/Book (PB) ratio is 8.23.