LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis

NASDAQ:LZ • US52466B1035

6.55 USD
+0.32 (+5.14%)
Last: Feb 24, 2026, 10:32 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

LZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the Professional Services industry. LZ has only an average score on both its financial health and profitability. An interesting combination arises when we look at growth and value: LZ is growing strongly while it also seems undervalued.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • LZ had positive earnings in the past year.
  • In the past year LZ had a positive cash flow from operations.
  • 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.
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

  • LZ has a Return On Assets of 3.02%. This is comparable to the rest of the industry: LZ outperforms 48.86% of its industry peers.
  • LZ has a Return On Equity (8.98%) which is comparable to the rest of the industry.
  • LZ has a worse Return On Invested Capital (3.49%) than 60.23% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LZ is in line with the industry average of 12.89%.
  • The last Return On Invested Capital (3.49%) for LZ is well below the 3 year average (11.32%), which needs to be investigated, but indicates that LZ had better years and this may not be a problem.
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)11.32%
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 47.73% of its industry peers.
  • LZ's Profit Margin has improved in the last couple of years.
  • The Operating Margin of LZ (1.52%) is worse than 61.36% of its industry peers.
  • In the last couple of years the Operating Margin of LZ has declined.
  • LZ has a better Gross Margin (65.88%) than 82.95% 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 RankSector Rank
OM 1.52%
PM (TTM) 2.04%
GM 65.88%
OM growth 3YN/A
OM growth 5Y-34.35%
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. 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 increased compared to 1 year ago.
  • The number of shares outstanding for LZ has been reduced compared to 5 years ago.
  • LZ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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

  • Based on the Altman-Z score of 0.22, we must say that LZ is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of LZ (0.22) is worse than 73.86% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 0.22
ROIC/WACC0.4
WACC8.72%
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.
  • With a Current ratio value of 0.76, LZ is not doing good in the industry: 84.09% of the companies in the same industry are doing better.
  • 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's Quick ratio of 0.76 is on the low side compared to the rest of the industry. LZ is outperformed by 82.95% 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. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 12.73% over the past year.
  • The Earnings Per Share has been growing by 15.86% on average over the past years. This is quite good.
  • The Revenue has grown by 10.88% in the past year. This is quite good.
  • 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

  • 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 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

  • 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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.56, which indicates a very decent valuation of LZ.
  • 80.68% of the companies in the same industry are more expensive than LZ, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.64. LZ is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 9.32 indicates a reasonable valuation of LZ.
  • Based on the Price/Forward Earnings ratio, LZ is valued cheaper than 80.68% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.75, LZ is valued rather cheaply.
Industry RankSector Rank
PE 10.56
Fwd PE 9.32
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.
  • 87.50% 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 7.85
EV/EBITDA 16.21
LZ Per share dataLZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

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)0.79
PEG (5Y)0.67
EPS Next 2Y9.37%
EPS Next 3Y11.75%

More info and screens

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

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

LEGALZOOMCOM INC

NASDAQ:LZ (2/24/2026, 10:32:03 AM)

6.55

+0.32 (+5.14%)

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-2.37%
Ins Owners0.41%
Ins Owner Change-8.06%
Market Cap1.16B
Revenue(TTM)756.04M
Net Income(TTM)15.43M
Analysts77.78
Price Target12.33 (88.24%)
Short Float %9.32%
Short Ratio4.3
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)0%
PT rev (3m)7.41%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0.5%
EPS NY rev (3m)-5.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
Industry RankSector Rank
PE 10.56
Fwd PE 9.32
P/S 1.54
P/FCF 7.85
P/OCF 6.52
P/B 6.76
P/tB 89.15
EV/EBITDA 16.21
EPS(TTM)0.62
EY9.47%
EPS(NY)0.7
Fwd EY10.73%
FCF(TTM)0.83
FCFY12.74%
OCF(TTM)1.01
OCFY15.35%
SpS4.26
BVpS0.97
TBVpS0.07
PEG (NY)0.79
PEG (5Y)0.67
Graham Number3.68
Profitability
Industry RankSector Rank
ROA 3.02%
ROE 8.98%
ROCE 5.96%
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)11.32%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.33%
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-34.35%
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 320.4%
Profit Quality 958.78%
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 0.22
F-Score7
WACC8.72%
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-27.82%
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.