NYSE:LAZ

Stock Analysis Report

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Executive Summary

Lazard Ltd, together with its subsidiaries, operates as a financial advisory and asset management firm in North America, Europe, Asia, Australia, and Central and South America. More Details


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Lazard's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LAZ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LAZ's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-7.2%

LAZ

0.2%

US Capital Markets

-1.4%

US Market


1 Year Return

6.1%

LAZ

33.4%

US Capital Markets

37.1%

US Market

Return vs Industry: LAZ underperformed the US Capital Markets industry which returned 29% over the past year.

Return vs Market: LAZ underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

LAZIndustryMarket
7 Day-7.2%0.2%-1.4%
30 Day-6.1%7.6%1.6%
90 Day3.9%18.4%7.3%
1 Year12.3%6.1%36.8%33.4%40.2%37.1%
3 Year-13.0%-25.7%41.4%30.9%62.5%52.1%
5 Year44.4%8.6%152.2%120.9%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is Lazard's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lazard undervalued compared to its fair value and its price relative to the market?

46.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAZ ($40.11) is trading below our estimate of fair value ($74.51)

Significantly Below Fair Value: LAZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LAZ is good value based on its PE Ratio (10.7x) compared to the US Capital Markets industry average (23.8x).

PE vs Market: LAZ is good value based on its PE Ratio (10.7x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: LAZ is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: LAZ is good value based on its PB Ratio (4.7x) compared to the US Capital Markets industry average (10.6x).


Next Steps

Future Growth

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

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAZ's forecast earnings growth (3.3% per year) is above the savings rate (2%).

Earnings vs Market: LAZ's earnings (3.3% per year) are forecast to grow slower than the US market (20.4% per year).

High Growth Earnings: LAZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: LAZ's revenue (3.4% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: LAZ's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LAZ's Return on Equity is forecast to be very high in 3 years time (47%).


Next Steps

Past Performance

How has Lazard performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAZ has high quality earnings.

Growing Profit Margin: LAZ's current net profit margins (15.7%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: LAZ's earnings have declined by 21.2% per year over the past 5 years.

Accelerating Growth: LAZ's earnings growth over the past year (42.3%) exceeds its 5-year average (-21.2% per year).

Earnings vs Industry: LAZ earnings growth over the past year (42.3%) exceeded the Capital Markets industry 7.6%.


Return on Equity

High ROE: Whilst LAZ's Return on Equity (40.29%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Lazard's financial position?


Financial Position Analysis

Short Term Liabilities: LAZ's short term assets ($3.3B) exceed its short term liabilities ($734.5M).

Long Term Liabilities: LAZ's short term assets ($3.3B) do not cover its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: LAZ's debt to equity ratio (166.1%) is considered high.

Reducing Debt: LAZ's debt to equity ratio has increased from 86.9% to 166.1% over the past 5 years.

Debt Coverage: LAZ's debt is well covered by operating cash flow (37%).

Interest Coverage: Insufficient data to determine if LAZ's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Lazard current dividend yield, its reliability and sustainability?

4.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LAZ's dividend (4.69%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: LAZ's dividend (4.69%) is in the top 25% of dividend payers in the US market (3.75%)


Stability and Growth of Payments

Stable Dividend: LAZ's dividend payments have been volatile in the past 10 years.

Growing Dividend: LAZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.9%), LAZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LAZ's dividends in 3 years are forecast to be well covered by earnings (46% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Kenneth Jacobs (61 yo)

11.25yrs

Tenure

US$10,509,588

Compensation

Mr. Kenneth Marc Jacobs serves as the Director at Lazard Asset Management LLC. He has served as Chairman of the Board of Directors and Chief Executive Officer of Lazard Ltd and Lazard Group since November ...


CEO Compensation Analysis

Compensation vs Market: Kenneth's total compensation ($USD10.51M) is above average for companies of similar size in the US market ($USD4.96M).

Compensation vs Earnings: Kenneth's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Jacobs
Chairman & CEO11.25yrsUS$10.51m1.98%
$ 83.3m
Ashish Bhutani
Vice Chairman & MD10.92yrsUS$9.06m0.82%
$ 34.4m
Alexander Stern
President1.67yrsUS$6.82m0.18%
$ 7.5m
Evan Russo
Chief Financial Officer3.33yrsUS$3.90m0.069%
$ 2.9m
Scott Hoffman
Chief Administrative Officer3.58yrsUS$4.07m0.087%
$ 3.7m
Dominick Ragone
Chief Accounting Officer8.25yrsno data0.035%
$ 1.5m
Pierre Tattevin
Managing Directorno datano datano data
Alexandra Deignan
Head of Investor Relations3.17yrsno datano data
Judi Mackey
Managing Director of Global Communicationsno datano datano data
Alexandra Soto
COO of Financial Advisory & Group Executive of Human Capital and Workplace Innovation1.67yrsno data0.014%
$ 589.0k
David Kurtz
Vice Chairman of U.S. Investment Banking & Head of Global Restructuring5.08yrsno datano data
Matthew Lustig
Head of North American Investment Bankingno datano datano data

3.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: LAZ's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Jacobs
Chairman & CEO11.25yrsUS$10.51m1.98%
$ 83.3m
Ashish Bhutani
Vice Chairman & MD10.92yrsUS$9.06m0.82%
$ 34.4m
Jean Zarouk
Chairman of Lazard Brazil Investment Banking1.67yrsno datano data
Brian Hanson
Chairman & CEO of Lazard Canada Investment Bankingno datano datano data
Philip Laskawy
Independent Director12.58yrsUS$324.17k0.0029%
$ 120.5k
Steven Heyer
Independent Director15.67yrsUS$334.27k0%
$ 0
Richard Parsons
Lead Independent Director3yrsUS$379.24k0%
$ 0
Richard Haass
Independent Director4.83yrsUS$309.26k0.0011%
$ 48.0k
Andrew Alper
Independent Director8.33yrsUS$319.26k0%
$ 0
Sylvia Jay
Independent Director14.92yrsUS$309.16k0%
$ 0
Jane Mendillo
Independent Director4.83yrsUS$314.23k0.0013%
$ 56.0k
Michelle Jarrard
Independent Director4.08yrsUS$309.16k0%
$ 0

8.3yrs

Average Tenure

67yo

Average Age

Experienced Board: LAZ's board of directors are considered experienced (8.3 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lazard Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lazard Ltd
  • Ticker: LAZ
  • Exchange: NYSE
  • Founded: 1848
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$4.213b
  • Shares outstanding: 105.03m
  • Website: https://www.lazard.com

Number of Employees


Location

  • Lazard Ltd
  • Clarendon House
  • 2 Church Street
  • Hamilton
  • HM11
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LAZNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMay 2005
LBJDB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 2005
0UB6LSE (London Stock Exchange)YesClass A Common StockGBUSDMay 2005

Biography

Lazard Ltd, together with its subsidiaries, operates as a financial advisory and asset management firm in North America, Europe, Asia, Australia, and Central and South America. Its Financial Advisory segme...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 23:30
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
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.