10.21 USD
+0.01 (+0.1%)
10.21 USD
0 (0%)
Taking everything into account, LZ scores 5 out of 10 in our fundamental rating. LZ was compared to 87 industry peers in the Professional Services industry. LZ has only an average score on both its financial health and profitability. LZ is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
In the past 5 years LZ always reported a positive cash flow from operatings.
1.2 Ratios
LZ has a Return On Assets (4.03%) which 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 58.62% 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 55.17% of its industry peers.
In the last couple of years the Profit Margin of LZ has grown nicely.
With a Operating Margin value of 1.57%, LZ is not doing good in the industry: 60.92% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of LZ has declined.
LZ has a Gross Margin of 65.69%. This is amongst the best in the industry. LZ outperforms 80.46% 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 | 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.
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
LZ has an Altman-Z score of 1.60. 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 1.60. This is in the lower half of the industry: LZ underperforms 67.82% 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 | 1.6 |
ROIC/WACC0.46
WACC8.8%
2.3 Liquidity
LZ has a Current 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.
Looking at the Current ratio, with a value of 0.84, LZ is doing worse than 82.76% of the companies in the same industry.
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 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.61% over the past year.
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
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.
The Revenue is expected to grow by 11.98% on average over the next years. This is quite good.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.95, the valuation of LZ can be described as correct.
71.26% of the companies in the same industry are more expensive than LZ, based on the Price/Earnings ratio.
LZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.38.
The Price/Forward Earnings ratio is 14.11, which indicates a correct valuation of LZ.
72.41% 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 23.83. LZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.95 | ||
| Fwd PE | 14.11 |
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 64.37% of the companies listed in the same industry.
72.41% of the companies in the same industry are more expensive than LZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.86 | ||
| EV/EBITDA | 28.85 |
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.
A more expensive valuation may be justified as LZ's earnings are expected to grow with 12.49% in the coming years.
PEG (NY)0.93
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% |
10.21
+0.01 (+0.1%)
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 Cap1.81B
Revenue(TTM)727.48M
Net Income(TTM)22.22M
Analysts77.78
Price Target12.33 (20.76%)
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)0.02%
EPS NQ rev (3m)-6.3%
EPS NY rev (1m)-6.35%
EPS NY rev (3m)-7.62%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)4.69%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.95 | ||
| Fwd PE | 14.11 | ||
| P/S | 2.49 | ||
| P/FCF | 16.86 | ||
| P/OCF | 9.7 | ||
| P/B | 8.96 | ||
| P/tB | 43.08 | ||
| EV/EBITDA | 28.85 |
EPS(TTM)0.64
EY6.27%
EPS(NY)0.72
Fwd EY7.09%
FCF(TTM)0.61
FCFY5.93%
OCF(TTM)1.05
OCFY10.31%
SpS4.1
BVpS1.14
TBVpS0.24
PEG (NY)0.93
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 | 1.6 |
F-Score6
WACC8.8%
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 15.95 and the Price/Book (PB) ratio is 8.96.