LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis
NASDAQ:LZ • US52466B1035
6.98 USD
-0.05 (-0.71%)
Last: Mar 2, 2026, 09:52 AM
Taking everything into account, LZ scores 5 out of 10 in our fundamental rating. LZ was compared to 88 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
- 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.
- Each year in the past 5 years LZ had a positive operating cash flow.
1.2 Ratios
- LZ has a Return On Assets (3.02%) which is in line with its industry peers.
- LZ has a Return On Equity (8.98%) which is in line with its industry peers.
- LZ has a Return On Invested Capital (3.49%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LZ is in line with the industry average of 12.74%.
- The 3 year average ROIC (11.40%) for LZ is well above the current ROIC(3.49%). The reason for the recent decline needs to be investigated.
| 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
- With a Profit Margin value of 2.04%, LZ perfoms like the industry average, outperforming 47.73% of the companies in the same industry.
- LZ's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 1.52%, LZ is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of LZ has declined.
- With an excellent Gross Margin value of 65.88%, LZ belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- LZ's Gross Margin has been stable in the last couple of years.
| 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. Health
2.1 Basic Checks
- LZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, LZ has more shares outstanding
- 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 0.47. 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 (0.47) than 73.86% 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 | 0.47 |
ROIC/WACC0.4
WACC8.61%
2.3 Liquidity
- A Current Ratio of 0.76 indicates that LZ may have some problems paying its short term obligations.
- With a Current ratio value of 0.76, LZ is not doing good in the industry: 84.09% of the companies in the same industry are doing better.
- LZ has a Quick 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 Quick ratio (0.76) than 82.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
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.
- LZ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.88%.
- 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
- The Earnings Per Share is expected to grow by 12.82% on average over the next years. This is quite good.
- LZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.01% yearly.
EPS Next Y13.37%
EPS Next 2Y9.37%
EPS Next 3Y11.75%
EPS Next 5Y12.82%
Revenue Next Year6.96%
Revenue Next 2Y6.37%
Revenue Next 3Y12.24%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.26 indicates a reasonable valuation of LZ.
- 79.55% of the companies in the same industry are more expensive than LZ, based on the Price/Earnings ratio.
- LZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.07.
- The Price/Forward Earnings ratio is 9.93, which indicates a very decent valuation of LZ.
- Based on the Price/Forward Earnings ratio, LZ is valued a bit cheaper than 79.55% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, LZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
- LZ's Enterprise Value to EBITDA is on the same level as the industry average.
- LZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LZ is cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.36 | ||
| EV/EBITDA | 18.76 |
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.
PEG (NY)0.84
PEG (5Y)0.71
EPS Next 2Y9.37%
EPS Next 3Y11.75%
5. Dividend
5.1 Amount
- No dividends for LZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:LZ (3/2/2026, 9:52:10 AM)
6.98
-0.05 (-0.71%)
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 Owners74.89%
Inst Owner Change-2.03%
Ins Owners0.41%
Ins Owner Change-8.03%
Market Cap1.24B
Revenue(TTM)756.04M
Net Income(TTM)15.43M
Analysts77.78
Price Target9.01 (29.08%)
Short Float %9.32%
Short Ratio4.3
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)-28.38%
EPS NQ rev (1m)-22.25%
EPS NQ rev (3m)-26.45%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-11.8%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 9.93 | ||
| P/S | 1.64 | ||
| P/FCF | 8.36 | ||
| P/OCF | 6.94 | ||
| P/B | 7.2 | ||
| P/tB | 95 | ||
| EV/EBITDA | 18.76 |
EPS(TTM)0.62
EY8.88%
EPS(NY)0.7
Fwd EY10.07%
FCF(TTM)0.83
FCFY11.95%
OCF(TTM)1.01
OCFY14.4%
SpS4.26
BVpS0.97
TBVpS0.07
PEG (NY)0.84
PEG (5Y)0.71
Graham Number3.68
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 | 0.47 |
F-Score7
WACC8.61%
ROIC/WACC0.4
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 Y13.37%
EPS Next 2Y9.37%
EPS Next 3Y11.75%
EPS Next 5Y12.82%
Revenue 1Y (TTM)10.88%
Revenue growth 3Y6.84%
Revenue growth 5Y9.95%
Sales Q2Q%17.66%
Revenue Next Year6.96%
Revenue Next 2Y6.37%
Revenue Next 3Y12.24%
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 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 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 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 13.37% in the next year.