CS Disco (NYSE:LAW) - Share price, News & Analysis

LAW fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

LAW Stock Overview

Rewards

Trading at 11.4% below our estimate of its fair value

Revenue is forecast to grow 27.51% per year

Revenue grew by 72.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 1.4% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

CS Disco Competitors

Open Text

NasdaqGS:OTEX

US$9.9b

KLDiscovery

OTCPK:KLDI

US$226.3m

RELX

LSE:REL

UK£44.2b

Thomson Reuters

TSX:TRI

CA$60.0b

Price History & Performance

Summary of all time highs, changes and price drops for CS Disco
Historical stock prices
Current Share Price	US$24.93
52 Week High	US$69.41
52 Week Low	US$19.57
Beta	0
1 Month Change	-24.52%
3 Month Change	-38.64%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-39.20%

Recent News & Updates

May 17

US$38.70: That's What Analysts Think CS Disco, Inc. (NYSE:LAW) Is Worth After Its Latest Results

CS Disco, Inc. ( NYSE:LAW ) investors will be delighted, with the company turning in some strong numbers with its...

Shareholder Returns

	LAW	US Software	US Market
7D	8.6%	0.3%	2.7%
1Y	n/a	-9.0%	-8.1%

Return vs Industry: Insufficient data to determine how LAW performed against the US Software industry.

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

Price Volatility

Is LAW's price volatile compared to industry and market?
LAW volatility
LAW Average Weekly Movement	13.1%
Software Industry Average Movement	11.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: LAW is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: LAW's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2012	470	Kiwi Camara	https://www.csdisco.com

CS Disco, Inc., a legal technology company, provides cloud-native and artificial intelligence-powered legal solutions for ediscovery, legal document review, and case management for enterprises, law firms, legal services providers, and governments. The company offers DISCO Ediscovery, a solution that automates ediscovery process and saves legal departments from manual tasks associated with collecting, processing, enriching, searching, reviewing, analyzing, producing, and using enterprise data that is at issue in legal matters. It also provides DISCO Review, an AI-powered document review solution, which consistently delivers legal document reviews; and DISCO Case Builder, a solution that allows legal professionals to collaborate with teams to build a compelling case by offering a single place to search, organize, and review witness testimony and other legal data.

CS Disco Fundamentals Summary

How do CS Disco's earnings and revenue compare to its market cap?
LAW fundamental statistics
Market Cap	US$1.45b
Earnings (TTM)	-US$33.29m
Revenue (TTM)	US$127.68m

11.4x

P/S Ratio

-43.8x

P/E Ratio

Is LAW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAW income statement (TTM)
Revenue	US$127.68m
Cost of Revenue	US$34.28m
Gross Profit	US$93.40m
Other Expenses	US$126.70m
Earnings	-US$33.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.57
Gross Margin	73.15%
Net Profit Margin	-26.08%
Debt/Equity Ratio	0%

How did LAW perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

11.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: LAW ($24.93) is trading below our estimate of fair value ($28.15)

Significantly Below Fair Value: LAW is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

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

PE vs Market: LAW 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 LAW's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: LAW is overvalued based on its PB Ratio (5.6x) compared to the US Software industry average (3.6x).

Future Growth

How is CS Disco forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-1.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LAW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LAW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LAW's revenue (27.5% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: LAW's revenue (27.5% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LAW is forecast to be unprofitable in 3 years.

Past Performance

How has CS Disco performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-127.1%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: LAW is currently unprofitable.

Growing Profit Margin: LAW is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if LAW's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: LAW is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (29.6%).

Return on Equity

High ROE: LAW has a negative Return on Equity (-12.75%), as it is currently unprofitable.

Financial Health

How is CS Disco's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: LAW's short term assets ($267.2M) exceed its short term liabilities ($19.6M).

Long Term Liabilities: LAW's short term assets ($267.2M) exceed its long term liabilities ($653.0K).

Debt to Equity History and Analysis

Debt Level: LAW is debt free.

Reducing Debt: LAW has not had any debt for past 5 years.

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: LAW has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LAW has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

What is CS Disco current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate LAW'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 LAW's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LAW has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Software industry.

Management

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

2.3yrs

Average management tenure

CEO

Kiwi Camara (37 yo)

8.42yrs

Tenure

US$937,891

Compensation

Mr. Kiwi Camara founded CS Disco Inc., since December 2013 and serves as its Chief Executive Officer and Member of the Board of Directors since December 2013. Mr. Camara was a founding partner of Camara &...

CEO Compensation Analysis

Compensation vs Market: Kiwi's total compensation ($USD937.89K) is below average for companies of similar size in the US market ($USD5.45M).

Compensation vs Earnings: Kiwi's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: LAW's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: LAW's board of directors are considered experienced (3.3 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: LAW only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31