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LAZ

LazardNYSE:LAZ Stock Report

Last Price

US$44.34

Market Cap

US$4.6b

7D

-3.2%

1Y

-2.8%

Updated

17 Jan, 2022

Data

Company Financials +
LAZ fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health2/6
Dividends5/6

LAZ Stock Overview

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.

Lazard Competitors

Charles Schwab

NYSE:SCHW

US$180.6b

Morgan Stanley

NYSE:MS

US$177.4b

Goldman Sachs Group

NYSE:GS

US$127.1b

Raymond James Financial

NYSE:RJF

US$22.5b

Price History & Performance

Summary of all time highs, changes and price drops for Lazard
Historical stock prices
Current Share PriceUS$44.34
52 Week HighUS$53.00
52 Week LowUS$38.68
Beta1.52
1 Month Change4.48%
3 Month Change-13.58%
1 Year Change-2.78%
3 Year Change12.57%
5 Year Change8.84%
Change since IPO84.75%

Recent News & Updates

Aug 06

Lazard: Banner Q2, But 2022 Revenue Growth Deceleration Is A Risk

Lazard's Q2 revenues were going through the roof amid booming M&A activity and favorable conditions for AUM growth. Amid the global M&A frenzy, revenues of Financial Advisory reached $471 million rising 61% YoY. Asset Management delivered an operating revenue of $343 million that was up 40%. Both the period-end and average assets under management were up sharply, by 29% and 32%, respectively. With its almost 4% yield, Lazard is among the top payers in the financial sector and on the U.S. market overall, with a high margin of dividend safety, given copious FCF, so dividend investors should definitely take a close look at the player. Revenue deceleration in 2022 can pose a meaningful threat to capital appreciation, thus I would opt for a neutral stance.

Jun 02

Lazard CEO sees work-from-home hurting young bankers' prospects - Bloomberg

Lazard ([[LAZ]] -0.3%) CEO Ken Jacobs tells Bloomberg News that working from home hasn't affected the bank's ability to close deals, but it could hurt the prospects for younger bankers over the longer term.He expects that more of the company's bankers will return to the office in the fall.Wall Street CEOs have been eager to bring staff back to offices, but it's been tricky as the banks try to allow staff to balance work-life schedules in the wake of the

Shareholder Returns

LAZUS Capital MarketsUS Market
7D-3.2%-0.8%-0.3%
1Y-2.8%30.2%13.7%

Return vs Industry: LAZ underperformed the US Capital Markets industry which returned 30.2% over the past year.

Return vs Market: LAZ underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is LAZ's price volatile compared to industry and market?
LAZ volatility
LAZ Average Weekly Movement4.3%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: LAZ is not significantly more volatile than the rest 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.

About the Company

FoundedEmployeesCEOWebsite
18483,161Kenneth Jacobshttps://www.lazard.com

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 segment offers various financial advisory services regarding mergers and acquisitions, capital advisory, restructurings, shareholder advisory, sovereign advisory, capital raising, and other strategic advisory matters. This segment serves corporate, partnership, institutional, government, sovereign, and individual clients across various industry areas, including consumers, financial institutions, healthcare and life sciences, industrials, power and energy/infrastructure, and real estate, as well as technology, media, and telecommunications.

Lazard Fundamentals Summary

How do Lazard's earnings and revenue compare to its market cap?
LAZ fundamental statistics
Market CapUS$4.56b
Earnings (TTM)US$499.13m
Revenue (TTM)US$3.07b

9.1x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAZ income statement (TTM)
RevenueUS$3.07b
Cost of RevenueUS$264.25m
Gross ProfitUS$2.80b
ExpensesUS$2.30b
EarningsUS$499.13m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.85
Gross Margin91.38%
Net Profit Margin16.27%
Debt/Equity Ratio132.4%

How did LAZ perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

40%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAZ ($44.34) is trading below our estimate of fair value ($93.12)

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 (9.1x) compared to the US Capital Markets industry average (15.9x).

PE vs Market: LAZ is good value based on its PE Ratio (9.1x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: LAZ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LAZ is good value based on its PB Ratio (5.2x) compared to the US Capital Markets industry average (42.4x).


Future Growth

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

-3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAZ's earnings are forecast to decline over the next 3 years (-3.1% per year).

Earnings vs Market: LAZ's earnings are forecast to decline over the next 3 years (-3.1% per year).

High Growth Earnings: LAZ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LAZ's revenue (2.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: LAZ's revenue (2.7% 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 (42%).


Past Performance

How has Lazard performed over the past 5 years?

-0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAZ has high quality earnings.

Growing Profit Margin: LAZ's current net profit margins (16.3%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: LAZ's earnings have declined by 0.9% per year over the past 5 years.

Accelerating Growth: LAZ's earnings growth over the past year (75.4%) exceeds its 5-year average (-0.9% per year).

Earnings vs Industry: LAZ earnings growth over the past year (75.4%) underperformed the Capital Markets industry 86.4%.


Return on Equity

High ROE: Whilst LAZ's Return on Equity (33.88%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Lazard's financial position?


Financial Position Analysis

Short Term Liabilities: LAZ's short term assets ($3.9B) exceed its short term liabilities ($750.8M).

Long Term Liabilities: LAZ's short term assets ($3.9B) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: LAZ's net debt to equity ratio (56%) is considered high.

Reducing Debt: LAZ's debt to equity ratio has increased from 90.6% to 132.4% over the past 5 years.

Debt Coverage: LAZ's debt is well covered by operating cash flow (35.7%).

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


Balance Sheet


Dividend

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

4.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LAZ's dividend (4.24%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: LAZ's dividend (4.24%) is in the top 25% of dividend payers in the US market (3.44%)


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 (40.2%), 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 (47.9% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Kenneth Jacobs (62 yo)

12.17yrs

Tenure

US$10,038,325

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 ($USD10.04M) is above average for companies of similar size in the US market ($USD5.13M).

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


Leadership Team

Experienced Management: LAZ's management team is considered experienced (5 years average tenure).


Board Members

Experienced Board: LAZ's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LAZ insiders have only sold shares 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 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
  • Implied Market Cap: US$4.561b
  • Shares outstanding: 102.87m
  • Website: https://www.lazard.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:27
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
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.