LEGALZOOMCOM INC (LZ) Fundamental Analysis & Valuation
NASDAQ:LZ • US52466B1035
Current stock price
6.28 USD
+0.09 (+1.45%)
At close:
6.28 USD
0 (0%)
After Hours:
This LZ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. LZ Profitability Analysis
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's Return On Assets of 3.02% is in line compared to the rest of the industry. LZ outperforms 49.43% of its industry peers.
- With a Return On Equity value of 8.98%, LZ perfoms like the industry average, outperforming 54.02% of the companies in the same industry.
- The Return On Invested Capital of LZ (3.49%) 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 12.57%.
- 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 47.13% of the companies in the same industry.
- In the last couple of years the Profit Margin of LZ has grown nicely.
- 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.
- LZ has a Gross Margin of 65.88%. 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 | 1.52% | ||
| 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. LZ Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LZ is creating some value.
- The number of shares outstanding for LZ has been increased compared to 1 year ago.
- 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 0.16. This is a bad value and indicates that LZ is not financially healthy and even has some risk of bankruptcy.
- LZ has a Altman-Z score of 0.16. This is in the lower half of the industry: LZ underperforms 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 0.16 |
ROIC/WACC0.39
WACC9.03%
2.3 Liquidity
- LZ has a Current 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.
- The Current ratio of LZ (0.76) is worse than 85.06% of its industry peers.
- 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 Quick ratio of 0.76. This is amonst the worse of the industry: LZ underperforms 83.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. LZ Growth Analysis
3.1 Past
- LZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.73%, which is quite good.
- LZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.86% yearly.
- LZ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.88%.
- LZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.95% yearly.
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.
- Based on estimates for the next years, LZ will show a quite strong growth in Revenue. The Revenue will grow by 12.01% on average per year.
EPS Next Y23.52%
EPS Next 2Y16.83%
EPS Next 3Y10.63%
EPS Next 5Y12.82%
Revenue Next Year9.06%
Revenue Next 2Y8.08%
Revenue Next 3Y6.94%
Revenue Next 5Y12.01%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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.
4. LZ Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.13, the valuation of LZ can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of LZ indicates a somewhat cheap valuation: LZ is cheaper than 79.31% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of LZ to the average of the S&P500 Index (25.23), we can say LZ is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.20, which indicates a very decent valuation of LZ.
- 87.36% 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 rather cheap valuation when compared to the S&P500 average which is at 22.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LZ is on the same level as its industry peers.
- LZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LZ is cheaper than 87.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 15.59 |
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.
PEG (NY)0.43
PEG (5Y)0.64
EPS Next 2Y16.83%
EPS Next 3Y10.63%
5. LZ Dividend Analysis
5.1 Amount
- No dividends for LZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LZ Fundamentals: All Metrics, Ratios and Statistics
6.28
+0.09 (+1.45%)
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 Owners76.04%
Inst Owner Change-2.02%
Ins Owners0.38%
Ins Owner Change2.89%
Market Cap1.09B
Revenue(TTM)756.04M
Net Income(TTM)15.43M
Analysts77.78
Price Target9.01 (43.47%)
Short Float %11.72%
Short Ratio4.39
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)-26.9%
EPS NQ rev (1m)-19.8%
EPS NQ rev (3m)-21.62%
EPS NY rev (1m)8.95%
EPS NY rev (3m)5.8%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)2.16%
Revenue NY rev (1m)1.95%
Revenue NY rev (3m)1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 8.2 | ||
| P/S | 1.44 | ||
| P/FCF | 7.34 | ||
| P/OCF | 6.09 | ||
| P/B | 6.32 | ||
| P/tB | 83.37 | ||
| EV/EBITDA | 15.59 |
EPS(TTM)0.62
EY9.87%
EPS(NY)0.77
Fwd EY12.19%
FCF(TTM)0.86
FCFY13.62%
OCF(TTM)1.03
OCFY16.41%
SpS4.37
BVpS0.99
TBVpS0.08
PEG (NY)0.43
PEG (5Y)0.64
Graham Number3.72
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 | 0.16 |
F-Score7
WACC9.03%
ROIC/WACC0.39
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 Y23.52%
EPS Next 2Y16.83%
EPS Next 3Y10.63%
EPS Next 5Y12.82%
Revenue 1Y (TTM)10.88%
Revenue growth 3Y6.84%
Revenue growth 5Y9.95%
Sales Q2Q%17.66%
Revenue Next Year9.06%
Revenue Next 2Y8.08%
Revenue Next 3Y6.94%
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 Fundamental Analysis 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 23.52% in the next year.