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LZ

LegalZoom.comNasdaqGS:LZ Stock Report

Market Cap

US$5.6b

7D

-25.6%

1Y

n/a

Updated

25 Sep, 2021

Data

Company Financials +
LZ fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health2/6
Dividends0/6

LZ Overview

LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States.

LegalZoom.com Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LegalZoom.com
Historical stock prices
Current Share PriceUS$26.25
52 Week HighUS$26.21
52 Week LowUS$40.94
Beta0
1 Month Change-28.77%
3 Month Changen/a
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-30.65%

Recent News & Updates

Shareholder Returns

LZUS Professional ServicesUS Market
7D-25.6%-0.3%-0.5%
1Yn/a33.3%37.5%

Return vs Industry: Insufficient data to determine how LZ performed against the US Professional Services industry.

Return vs Market: Insufficient data to determine how LZ performed against the US Market.

Price Volatility

Is LZ's price volatile compared to industry and market?
LZ volatility
LZ Beta0
Industry Beta1.07
Market Beta1

Stable Share Price: LZ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: Insufficient data to determine LZ's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
19991,055Dan Wernikoffhttps://www.legalzoom.com

LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company’s platform offers products and services, including business formations, creating estate planning documents, protecting intellectual property, completing certain forms and agreements, providing access to independent attorney advice, and connecting customers with experts for tax preparation and bookkeeping services. It serves small businesses and individuals.

LegalZoom.com Fundamentals Summary

How do LegalZoom.com's earnings and revenue compare to its market cap?
LZ fundamental statistics
Market CapUS$5.60b
Earnings (TTM)-US$32.06m
Revenue (TTM)US$538.90m

9.6x

P/S Ratio

-161.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LZ income statement (TTM)
RevenueUS$538.90m
Cost of RevenueUS$177.51m
Gross ProfitUS$361.39m
ExpensesUS$393.45m
Earnings-US$32.06m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.16
Gross Margin67.06%
Net Profit Margin-5.95%
Debt/Equity Ratio-108.8%

How did LZ perform over the long term?

See historical performance and comparison

Valuation

Is LegalZoom.com undervalued compared to its fair value and its price relative to the market?


Share Price vs. Fair Value

Below Fair Value: LZ ($26.25) is trading above our estimate of fair value ($24.06)

Significantly Below Fair Value: LZ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LZ is unprofitable, so we can't compare its PE Ratio to the US Professional Services industry average.

PE vs Market: LZ is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LZ has negative assets, so we can't compare its PB Ratio to the US Professional Services industry average.


Future Growth

How is LegalZoom.com forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

81.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LZ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: LZ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LZ's is expected to become profitable in the next 3 years.

Revenue vs Market: LZ's revenue (19.2% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: LZ's revenue (19.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LZ's Return on Equity is forecast to be high in 3 years time (39.1%)


Past Performance

How has LegalZoom.com performed over the past 5 years?

-607.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: LZ is currently unprofitable.

Growing Profit Margin: LZ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if LZ's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare LZ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LZ is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (19%).


Return on Equity

High ROE: LZ's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is LegalZoom.com's financial position?


Financial Position Analysis

Short Term Liabilities: LZ has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LZ has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: LZ has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: LZ's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable LZ has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LZ is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 46.4% per year.


Dividend

What is LegalZoom.com current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LZ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LZ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LZ's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Dan Wernikoff (49 yo)

1.92yrs

Tenure

US$4,451,916

Compensation

Mr. Daniel A. Wernikoff, also known as Dan, is Chief Executive Officer and Director at LegalZoom.com, Inc. since October 2019. From March 2019 to August 2019, Mr. Wernikoff served as a Venture Partner at T...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD4.45M) is below average for companies of similar size in the US market ($USD6.42M).

Compensation vs Earnings: Insufficient data to compare Dan's compensation with company performance.


Leadership Team

Experienced Management: LZ's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: LZ's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: LZ only recently listed within the past 12 months.


Top Shareholders

Company Information

LegalZoom.com, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: LegalZoom.com, Inc.
  • Ticker: LZ
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$5.602b
  • Shares outstanding: 196.90m
  • Website: https://www.legalzoom.com

Number of Employees


Location

  • LegalZoom.com, Inc.
  • 101 North Brand Boulevard
  • 11th Floor
  • Glendale
  • California
  • 91203
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 02:19
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.