LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis
NASDAQ:LZ - Nasdaq - US52466B1035 - Common Stock - Currency: USD
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 an average financial health and profitability rating. LZ is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, LZ could be worth investigating further 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 better Return On Assets (5.70%) than 64.63% of its industry peers.
With a decent Return On Equity value of 16.21%, LZ is doing good in the industry, outperforming 63.41% of the companies in the same industry.
LZ has a Return On Invested Capital of 11.88%. This is in the better half of the industry: LZ outperforms 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 16.21% | ||
| ROIC | 11.88% |
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 (4.39%) which is comparable to the rest of the industry.
LZ's Profit Margin has improved in the last couple of years.
LZ has a Operating Margin (4.58%) which is in line with its industry peers.
LZ's Operating Margin has declined in the last couple of years.
The Gross Margin of LZ (65.51%) is better than 79.27% 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 | 4.58% | ||
| PM (TTM) | 4.39% | ||
| GM | 65.51% |
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.
LZ has less 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.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that LZ is in the distress zone and has some risk of bankruptcy.
LZ has a Altman-Z score of 1.41. This is in the lower half of the industry: LZ underperforms 71.95% of its industry peers.
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 | 1.41 |
ROIC/WACC1.32
WACC8.99%
2.3 Liquidity
A Current Ratio of 0.77 indicates that LZ may have some problems paying its short term obligations.
With a Current ratio value of 0.77, LZ is not doing good in the industry: 86.59% of the companies in the same industry are doing better.
A Quick Ratio of 0.77 indicates that LZ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, LZ is doing worse than 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
LZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.09%, 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 3.24% in the past year.
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)34.09%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%44.44%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%5.11%
3.2 Future
The Earnings Per Share is expected to grow by 12.68% 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 11.98% yearly.
EPS Next Y15.49%
EPS Next 2Y14.66%
EPS Next 3Y12.49%
EPS Next 5Y12.68%
Revenue Next Year5.17%
Revenue Next 2Y6.2%
Revenue Next 3Y6.36%
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 15.10.
Based on the Price/Earnings ratio, LZ is valued a bit cheaper than 68.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. LZ is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.32, which indicates a correct valuation of LZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LZ indicates a somewhat cheap valuation: LZ is cheaper than 75.61% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. LZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.32 |
4.2 Price Multiples
LZ's Enterprise Value to EBITDA ratio is in line with the industry average.
LZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.59 | ||
| EV/EBITDA | 20.95 |
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 12.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)0.37
EPS Next 2Y14.66%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
LZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.91
-0.26 (-2.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners64.36%
Inst Owner Change0%
Ins Owners0.56%
Ins Owner Change26.18%
Market Cap1.61B
Analysts51.11
Price Target9.61 (7.86%)
Short Float %6.55%
Short Ratio4.49
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)1
Avg EPS beat(2)6.93%
Min EPS beat(2)-2.24%
Max EPS beat(2)16.09%
EPS beat(4)3
Avg EPS beat(4)7.5%
Min EPS beat(4)-2.24%
Max EPS beat(4)16.09%
EPS beat(8)5
Avg EPS beat(8)8.99%
EPS beat(12)9
Avg EPS beat(12)32.53%
EPS beat(16)11
Avg EPS beat(16)33.61%
Revenue beat(2)1
Avg Revenue beat(2)-1%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)0.41%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)0.41%
Revenue beat(8)2
Avg Revenue beat(8)-1.28%
Revenue beat(12)4
Avg Revenue beat(12)-0.83%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)2.73%
PT rev (3m)-2.59%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)-4.15%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.32 | ||
| P/S | 2.34 | ||
| P/FCF | 23.59 | ||
| P/OCF | 10.61 | ||
| P/B | 8.62 | ||
| P/tB | 74.14 | ||
| EV/EBITDA | 20.95 |
EPS(TTM)0.59
EY6.62%
EPS(NY)0.72
Fwd EY8.12%
FCF(TTM)0.38
FCFY4.24%
OCF(TTM)0.84
OCFY9.42%
SpS3.81
BVpS1.03
TBVpS0.12
PEG (NY)0.97
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 16.21% | ||
| ROCE | 15.04% | ||
| ROIC | 11.88% | ||
| ROICexc | 12611.3% | ||
| ROICexgc | N/A | ||
| OM | 4.58% | ||
| PM (TTM) | 4.39% | ||
| GM | 65.51% | ||
| FCFM | 9.91% |
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 | 222.29% | ||
| Cap/Sales | 12.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 219.64% | ||
| Profit Quality | 225.49% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.41 |
F-Score7
WACC8.99%
ROIC/WACC1.32
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)34.09%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%44.44%
EPS Next Y15.49%
EPS Next 2Y14.66%
EPS Next 3Y12.49%
EPS Next 5Y12.68%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%5.11%
Revenue Next Year5.17%
Revenue Next 2Y6.2%
Revenue Next 3Y6.36%
Revenue Next 5Y11.98%
EBIT growth 1Y1.01%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year48.14%
EBIT Next 3Y23.64%
EBIT Next 5Y22.36%
FCF growth 1Y22.41%
FCF growth 3YN/A
FCF growth 5Y23.81%
OCF growth 1Y70.38%
OCF growth 3Y35.81%
OCF growth 5Y20.81%