LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis
USA - NASDAQ:LZ - US52466B1035 - Common Stock
9.88 USD
-0.39 (-3.8%)
9.88 USD
0 (0%)
Taking everything into account, LZ scores 5 out of 10 in our fundamental rating. LZ was compared to 82 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! This makes LZ very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year LZ was profitable.
LZ had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LZ reported negative net income in multiple years.
LZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LZ has a Return On Assets (5.30%) which is in line with its industry peers.
The Return On Equity of LZ (14.82%) is better than 64.63% of its industry peers.
The Return On Invested Capital of LZ (9.86%) is better than 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 14.82% | ||
| ROIC | 9.86% |
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 (4.07%) which 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 3.83% is in line compared to the rest of the industry. LZ outperforms 43.90% of its industry peers.
LZ's Operating Margin has declined in the last couple of years.
LZ has a better Gross Margin (65.71%) than 76.83% 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 | 3.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 65.71% |
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 just above the Cost of Capital (WACC), so LZ is still creating some 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.
The debt/assets ratio for LZ has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that LZ is in the distress zone and has some risk of bankruptcy.
LZ has a Altman-Z score of 1.69. This is in the lower half of the industry: LZ underperforms 71.95% 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 | 1.69 |
ROIC/WACC1.13
WACC8.69%
2.3 Liquidity
A Current Ratio of 0.78 indicates that LZ may have some problems paying its short term obligations.
LZ has a worse Current ratio (0.78) than 85.37% of its industry peers.
LZ has a Quick Ratio of 0.78. 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 0.78, LZ is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
LZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.45%, which is quite impressive.
Measured over the past years, LZ shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.44% on average per year.
LZ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.19%.
Measured over the past years, LZ shows a quite strong growth in Revenue. The Revenue has been growing by 10.80% on average per year.
EPS 1Y (TTM)45.45%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%50%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%8.54%
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.
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
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
LZ is valuated correctly with a Price/Earnings ratio of 15.44.
Based on the Price/Earnings ratio, LZ is valued a bit cheaper than 69.51% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.31. LZ is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.40 indicates a correct valuation of LZ.
73.17% of the companies in the same industry are more expensive than LZ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.85. LZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 12.4 |
4.2 Price Multiples
LZ's Enterprise Value to EBITDA ratio is in line with the industry average.
LZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LZ is cheaper than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.63 | ||
| EV/EBITDA | 22.95 |
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.
A more expensive valuation may be justified as LZ's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)0.62
PEG (5Y)0.38
EPS Next 2Y20.37%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
No dividends for LZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.88
-0.39 (-3.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners67.2%
Inst Owner Change0.21%
Ins Owners0.59%
Ins Owner Change3.84%
Market Cap1.78B
Analysts75.56
Price Target11.48 (16.19%)
Short Float %8.8%
Short Ratio4.8
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)-2.15%
Min EPS beat(2)-2.24%
Max EPS beat(2)-2.06%
EPS beat(4)2
Avg EPS beat(4)6%
Min EPS beat(4)-2.24%
Max EPS beat(4)16.09%
EPS beat(8)5
Avg EPS beat(8)8.87%
EPS beat(12)8
Avg EPS beat(12)11.17%
EPS beat(16)10
Avg EPS beat(16)29.68%
Revenue beat(2)2
Avg Revenue beat(2)1.35%
Min Revenue beat(2)0.41%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)5
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)-0.8%
PT rev (1m)0%
PT rev (3m)19.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.79%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)8.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 12.4 | ||
| P/S | 2.52 | ||
| P/FCF | 21.63 | ||
| P/OCF | 10.86 | ||
| P/B | 9.18 | ||
| P/tB | 54.7 | ||
| EV/EBITDA | 22.95 |
EPS(TTM)0.64
EY6.48%
EPS(NY)0.8
Fwd EY8.07%
FCF(TTM)0.46
FCFY4.62%
OCF(TTM)0.91
OCFY9.21%
SpS3.92
BVpS1.08
TBVpS0.18
PEG (NY)0.62
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 14.82% | ||
| ROCE | 12.48% | ||
| ROIC | 9.86% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 3.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 65.71% | ||
| FCFM | 11.66% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 184.92% | ||
| Cap/Sales | 11.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 230.34% | ||
| Profit Quality | 286.17% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.69 |
F-Score7
WACC8.69%
ROIC/WACC1.13
Cap/Depr(3y)117.02%
Cap/Depr(5y)169.46%
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)45.45%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%50%
EPS Next Y25%
EPS Next 2Y20.37%
EPS Next 3Y16.04%
EPS Next 5Y12.68%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%8.54%
Revenue Next Year8.01%
Revenue Next 2Y7.65%
Revenue Next 3Y7.17%
Revenue Next 5Y11.98%
EBIT growth 1Y-3.7%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year50.37%
EBIT Next 3Y24.89%
EBIT Next 5Y22.36%
FCF growth 1Y-6.13%
FCF growth 3YN/A
FCF growth 5Y23.81%
OCF growth 1Y32.93%
OCF growth 3Y35.81%
OCF growth 5Y20.81%