10.09 USD
-0.02 (-0.2%)
10.09 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LZ. LZ was compared to 86 industry peers in the Professional Services industry. Both the profitability and the financial health of LZ get a neutral evaluation. Nothing too spectacular is happening here. LZ is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
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
Looking at the Return On Assets, with a value of 4.03%, LZ is in line with its industry, outperforming 56.98% of the companies in the same industry.
LZ has a Return On Equity (11.01%) which is in line with its industry peers.
LZ's Return On Invested Capital of 4.03% is in line compared to the rest of the industry. LZ outperforms 45.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 11.01% | ||
| ROIC | 4.03% |
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 (3.05%) 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 1.57% is on the low side compared to the rest of the industry. LZ is outperformed by 60.47% of its industry peers.
LZ's Operating Margin has declined in the last couple of years.
LZ has a better Gross Margin (65.69%) than 81.40% of its industry peers.
LZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.57% | ||
| PM (TTM) | 3.05% | ||
| GM | 65.69% |
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
LZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LZ has less shares outstanding than it did 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 1.56. This is a bad value and indicates that LZ is not financially healthy and even has some risk of bankruptcy.
LZ's Altman-Z score of 1.56 is on the low side compared to the rest of the industry. LZ is outperformed by 67.44% 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 | 1.56 |
ROIC/WACC0.46
WACC8.81%
2.3 Liquidity
A Current Ratio of 0.84 indicates that LZ may have some problems paying its short term obligations.
LZ has a worse Current ratio (0.84) than 82.56% of its industry peers.
A Quick Ratio of 0.84 indicates that LZ may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, LZ is not doing good in the industry: 82.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
LZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.61%, 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 7.17% in the past year.
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)30.61%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%0%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%12.79%
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 12.68% yearly.
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 Y17.07%
EPS Next 2Y14.72%
EPS Next 3Y12.49%
EPS Next 5Y12.68%
Revenue Next Year10.23%
Revenue Next 2Y8.64%
Revenue Next 3Y7.35%
Revenue Next 5Y11.98%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 15.77.
Compared to the rest of the industry, the Price/Earnings ratio of LZ indicates a somewhat cheap valuation: LZ is cheaper than 72.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.50, LZ is valued a bit cheaper.
LZ is valuated correctly with a Price/Forward Earnings ratio of 13.94.
74.42% 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 23.93. LZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.77 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LZ indicates a slightly more expensive valuation: LZ is more expensive than 63.95% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LZ is valued a bit cheaper than the industry average as 75.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.66 | ||
| EV/EBITDA | 28.49 |
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.
LZ's earnings are expected to grow with 12.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)0.39
EPS Next 2Y14.72%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
No dividends for LZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
10.09
-0.02 (-0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners75%
Inst Owner Change6.26%
Ins Owners0.41%
Ins Owner Change-9.99%
Market Cap1.79B
Revenue(TTM)727.48M
Net Income(TTM)22.22M
Analysts77.78
Price Target12.33 (22.2%)
Short Float %6.09%
Short Ratio4.09
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)-6.88%
Min EPS beat(2)-11.69%
Max EPS beat(2)-2.06%
EPS beat(4)1
Avg EPS beat(4)0.02%
Min EPS beat(4)-11.69%
Max EPS beat(4)16.09%
EPS beat(8)4
Avg EPS beat(8)3.63%
EPS beat(12)7
Avg EPS beat(12)9.27%
EPS beat(16)10
Avg EPS beat(16)33.34%
Revenue beat(2)2
Avg Revenue beat(2)1.52%
Min Revenue beat(2)0.75%
Max Revenue beat(2)2.3%
Revenue beat(4)3
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.85%
Revenue beat(12)5
Avg Revenue beat(12)-0.43%
Revenue beat(16)7
Avg Revenue beat(16)-0.68%
PT rev (1m)7.41%
PT rev (3m)7.41%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-6.3%
EPS NY rev (1m)-6.35%
EPS NY rev (3m)-6.35%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)4.69%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.77 | ||
| Fwd PE | 13.94 | ||
| P/S | 2.46 | ||
| P/FCF | 16.66 | ||
| P/OCF | 9.58 | ||
| P/B | 8.86 | ||
| P/tB | 42.57 | ||
| EV/EBITDA | 28.49 |
EPS(TTM)0.64
EY6.34%
EPS(NY)0.72
Fwd EY7.17%
FCF(TTM)0.61
FCFY6%
OCF(TTM)1.05
OCFY10.44%
SpS4.1
BVpS1.14
TBVpS0.24
PEG (NY)0.92
PEG (5Y)0.39
Graham Number4.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 11.01% | ||
| ROCE | 5.1% | ||
| ROIC | 4.03% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 1.57% | ||
| PM (TTM) | 3.05% | ||
| GM | 65.69% | ||
| FCFM | 14.75% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 184.3% | ||
| Cap/Sales | 10.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 342.75% | ||
| Profit Quality | 482.97% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.56 |
F-Score6
WACC8.81%
ROIC/WACC0.46
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)30.61%
EPS 3YN/A
EPS 5Y40.44%
EPS Q2Q%0%
EPS Next Y17.07%
EPS Next 2Y14.72%
EPS Next 3Y12.49%
EPS Next 5Y12.68%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%12.79%
Revenue Next Year10.23%
Revenue Next 2Y8.64%
Revenue Next 3Y7.35%
Revenue Next 5Y11.98%
EBIT growth 1Y-71.34%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year52.16%
EBIT Next 3Y24.01%
EBIT Next 5Y22.36%
FCF growth 1Y21.28%
FCF growth 3YN/A
FCF growth 5Y23.81%
OCF growth 1Y51.01%
OCF growth 3Y35.81%
OCF growth 5Y20.81%
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.
What is the valuation status for LZ stock?
ChartMill assigns a valuation rating of 5 / 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 4 / 10.
What are the PE and PB ratios of LEGALZOOMCOM INC (LZ) stock?
The Price/Earnings (PE) ratio for LEGALZOOMCOM INC (LZ) is 15.77 and the Price/Book (PB) ratio is 8.86.