LEGALZOOMCOM INC (LZ) Stock Fundamental Analysis
USA - NASDAQ:LZ - US52466B1035 - Common Stock
9.97 USD
-0.3 (-2.92%)
9.98 USD
+0.01 (+0.1%)
LZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year LZ was profitable.
In the past year LZ had a positive cash flow from operations.
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
The Return On Assets of LZ (4.03%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 11.01%, LZ is in line with its industry, outperforming 56.98% of the companies in the same industry.
LZ has a Return On Invested Capital (4.03%) which is comparable to the rest of the industry.
| 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 of 3.05%. This is comparable to the rest of the industry: LZ outperforms 52.33% of its industry peers.
LZ's Profit Margin has improved in the last couple of years.
LZ has a Operating Margin of 1.57%. This is comparable to the rest of the industry: LZ outperforms 41.86% of its industry peers.
In the last couple of years the Operating Margin of LZ has declined.
With a decent Gross Margin value of 65.69%, LZ is doing good in the industry, outperforming 79.07% of the companies in the same industry.
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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LZ is destroying value.
LZ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LZ has less shares outstanding
The debt/assets ratio for LZ has been reduced compared to a year ago.
2.2 Solvency
LZ has an Altman-Z score of 1.67. This is a bad value and indicates that LZ is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of LZ (1.67) is worse than 66.28% 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 | 1.67 |
ROIC/WACC0.46
WACC8.72%
2.3 Liquidity
A Current Ratio of 0.84 indicates that LZ may have some problems paying its short term obligations.
The Current ratio of LZ (0.84) is worse than 80.23% of its industry peers.
LZ has a Quick Ratio of 0.84. 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 worse Quick ratio (0.84) than 80.23% of its industry peers.
| 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.
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.
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
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.
Based on estimates for the next years, LZ will show a quite strong growth in Revenue. The Revenue will grow by 11.98% on average per year.
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
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
The Price/Earnings ratio is 15.58, which indicates a correct valuation of LZ.
LZ's Price/Earnings ratio is a bit cheaper when compared to the industry. LZ is cheaper than 70.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. LZ is valued slightly cheaper when compared to this.
LZ is valuated correctly with a Price/Forward Earnings ratio of 12.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LZ indicates a somewhat cheap valuation: LZ is cheaper than 72.09% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.57. LZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LZ is valued a bit more expensive than the industry average as 65.12% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, LZ is valued a bit cheaper than 68.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.74 | ||
| EV/EBITDA | 29.64 |
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.
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)0.39
EPS Next 2Y20.37%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
LZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.97
-0.3 (-2.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners67.2%
Inst Owner Change-0.27%
Ins Owners0.59%
Ins Owner Change3.84%
Market Cap1.80B
Revenue(TTM)727.48M
Net Income(TTM)22.22M
Analysts75.56
Price Target11.48 (15.15%)
Short Float %9.15%
Short Ratio5.53
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)-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)0%
PT rev (3m)19.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.79%
EPS NY rev (1m)0%
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 | 15.58 | ||
| Fwd PE | 12.51 | ||
| P/S | 2.47 | ||
| P/FCF | 16.74 | ||
| P/OCF | 9.63 | ||
| P/B | 8.9 | ||
| P/tB | 42.77 | ||
| EV/EBITDA | 29.64 |
EPS(TTM)0.64
EY6.42%
EPS(NY)0.8
Fwd EY7.99%
FCF(TTM)0.6
FCFY5.97%
OCF(TTM)1.04
OCFY10.39%
SpS4.04
BVpS1.12
TBVpS0.23
PEG (NY)0.62
PEG (5Y)0.39
Graham Number4.02
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 | 1.67 |
F-Score6
WACC8.72%
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 Y25%
EPS Next 2Y20.37%
EPS Next 3Y16.04%
EPS Next 5Y12.68%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y5.84%
Revenue growth 5Y10.8%
Sales Q2Q%12.79%
Revenue Next Year8.01%
Revenue Next 2Y7.65%
Revenue Next 3Y7.17%
Revenue Next 5Y11.98%
EBIT growth 1Y-71.34%
EBIT growth 3YN/A
EBIT growth 5Y-7.7%
EBIT Next Year50.37%
EBIT Next 3Y24.89%
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 15.58 and the Price/Book (PB) ratio is 8.9.