LEGALZOOMCOM INC (LZ) Fundamental Analysis & Valuation

NASDAQ:LZ • US52466B1035

6.29 USD
0 (0%)
Last: Mar 12, 2026, 11:36 AM
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This LZ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

LZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. LZ has an average financial health and profitability rating. LZ is evaluated to be cheap and growing strongly. This does not happen too often!


Dividend Valuation Growth Profitability Health

5

1. LZ Profitability Analysis

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.
  • LZ had a positive operating cash flow in each of the past 5 years.
LZ Yearly Net Income VS EBIT VS OCF VS FCFLZ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M 150M

1.2 Ratios

  • The Return On Assets of LZ (3.02%) is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 8.98%, LZ is in line with its industry, outperforming 52.87% of the companies in the same industry.
  • LZ has a Return On Invested Capital (3.49%) which is comparable to the rest of the industry.
  • LZ had an Average Return On Invested Capital over the past 3 years of 11.40%. This is in line with the industry average of 12.78%.
  • 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 RankSector 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
LZ Yearly ROA, ROE, ROICLZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 2025 0 50 -50

1.3 Margins

  • LZ's Profit Margin of 2.04% is in line compared to the rest of the industry. LZ outperforms 47.13% of its industry peers.
  • LZ's Profit Margin has improved in the last couple of years.
  • LZ's Operating Margin of 1.52% is in line compared to the rest of the industry. LZ outperforms 40.23% of its industry peers.
  • LZ's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 65.88%, LZ belongs to the top of the industry, outperforming 81.61% 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 RankSector 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%
LZ Yearly Profit, Operating, Gross MarginsLZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. LZ Health Analysis

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.
  • LZ has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for LZ has been reduced compared to 5 years ago.
  • The debt/assets ratio for LZ has been reduced compared to a year ago.
LZ Yearly Shares OutstandingLZ Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
LZ Yearly Total Debt VS Total AssetsLZ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

2.2 Solvency

  • LZ has an Altman-Z score of 0.24. 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 (0.24) than 74.71% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 0.24
ROIC/WACC0.4
WACC8.79%
LZ Yearly LT Debt VS Equity VS FCFLZ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M -400M

2.3 Liquidity

  • A Current Ratio of 0.76 indicates that LZ may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.76, LZ is doing worse than 85.06% of the companies in the same industry.
  • A Quick Ratio of 0.76 indicates that LZ may have some problems paying its short term obligations.
  • LZ has a Quick ratio of 0.76. This is amonst the worse of the industry: LZ underperforms 83.91% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
LZ Yearly Current Assets VS Current LiabilitesLZ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. LZ Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 12.73% over the past year.
  • LZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.86% yearly.
  • Looking at the last year, LZ shows a quite strong growth in Revenue. The Revenue has grown by 10.88% in the last year.
  • 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

  • LZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.82% yearly.
  • The Revenue is expected to grow by 12.01% on average over the next years. This is quite good.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
LZ Yearly Revenue VS EstimatesLZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M 800M 1B
LZ Yearly EPS VS EstimatesLZ Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.2 0.4 0.6 0.8 1

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Find the best growth stocksShow best growing peers

7

4. LZ Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.15 indicates a reasonable valuation of LZ.
  • Based on the Price/Earnings ratio, LZ is valued cheaper than 80.46% of the companies in the same industry.
  • LZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
  • With a Price/Forward Earnings ratio of 8.95, the valuation of LZ can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, LZ is valued cheaper than 86.21% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of LZ to the average of the S&P500 Index (24.27), we can say LZ is valued rather cheaply.
Industry RankSector Rank
PE 10.15
Fwd PE 8.95
LZ Price Earnings VS Forward Price EarningsLZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • LZ's Enterprise Value to EBITDA is on the same level as the industry average.
  • 86.21% of the companies in the same industry are more expensive than LZ, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.54
EV/EBITDA 16.4
LZ Per share dataLZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

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)0.76
PEG (5Y)0.64
EPS Next 2Y9.37%
EPS Next 3Y11.75%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. LZ Dividend Analysis

5.1 Amount

  • LZ does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

LZ Fundamentals: All Metrics, Ratios and Statistics

LEGALZOOMCOM INC

NASDAQ:LZ (3/12/2026, 11:36:56 AM)

6.29

0 (0%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-19
Earnings (Next)05-05
Inst Owners74.89%
Inst Owner Change-2.02%
Ins Owners0.41%
Ins Owner Change-8.03%
Market Cap1.12B
Revenue(TTM)756.04M
Net Income(TTM)15.43M
Analysts77.78
Price Target9.01 (43.24%)
Short Float %11.01%
Short Ratio4.43
Dividend
Industry RankSector 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)-26.9%
EPS NQ rev (1m)-22.25%
EPS NQ rev (3m)-24.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 10.15
Fwd PE 8.95
P/S 1.47
P/FCF 7.54
P/OCF 6.26
P/B 6.49
P/tB 85.61
EV/EBITDA 16.4
EPS(TTM)0.62
EY9.86%
EPS(NY)0.7
Fwd EY11.18%
FCF(TTM)0.83
FCFY13.27%
OCF(TTM)1.01
OCFY15.98%
SpS4.26
BVpS0.97
TBVpS0.07
PEG (NY)0.76
PEG (5Y)0.64
Graham Number3.68
Profitability
Industry RankSector 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 RankSector 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 0.24
F-Score7
WACC8.79%
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 7 / 10 to LEGALZOOMCOM INC (LZ). This can be considered as Undervalued.


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.