company background image
LAW

CS DiscoNYSE:LAW Stock Report

Last Price

US$28.38

Market Cap

US$1.6b

7D

-4.3%

1Y

n/a

Updated

23 Jan, 2022

Data

Company Financials +
LAW fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

LAW Stock Overview

CS Disco, Inc., a legal technology company, offers artificial intelligence and cloud computing solutions that help lawyers and legal teams to solve their client’s legal issues.

CS Disco Competitors

Open Text

NasdaqGS:OTEX

US$12.6b

KLDiscovery

OTCPK:KLDI

US$345.7m

RELX

LSE:REL

UK£43.7b

Thomson Reuters

TSX:TRI

CA$64.9b

Price History & Performance

Summary of all time highs, changes and price drops for CS Disco
Historical stock prices
Current Share PriceUS$28.38
52 Week HighUS$69.41
52 Week LowUS$28.32
Beta0
1 Month Change-21.88%
3 Month Change-43.58%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-30.78%

Recent News & Updates

Jan 17
Estimating The Fair Value Of CS Disco, Inc. (NYSE:LAW)

Estimating The Fair Value Of CS Disco, Inc. (NYSE:LAW)

In this article we are going to estimate the intrinsic value of CS Disco, Inc. ( NYSE:LAW ) by estimating the company's...

Jan 12

CS Disco: Game Changer In The Legal Tech Space

Disruptive technologies have reached the legal services industry, where CS Disco can play a leading role in the transformation process. Fundamentals and share prices have disconnected since Q3 earnings as investors got scared of larger fluctuations in quarterly revenue. This provides an excellent buying opportunity. Valuation is compelling, average analyst price target implies around 100% upside.

Shareholder Returns

LAWUS SoftwareUS Market
7D-4.3%-5.5%-6.1%
1Yn/a6.1%4.2%

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 Movement10.2%
Software Industry Average Movement8.7%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: LAW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: LAW's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2012336Kiwi Camarahttps://www.csdisco.com

CS Disco, Inc., a legal technology company, offers artificial intelligence and cloud computing solutions that help lawyers and legal teams to solve their client’s legal issues. 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, a AI-powered document review solution that 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 CapUS$1.64b
Earnings (TTM)-US$18.31m
Revenue (TTM)US$99.72m

16.4x

P/S Ratio

-89.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAW income statement (TTM)
RevenueUS$99.72m
Cost of RevenueUS$27.66m
Gross ProfitUS$72.06m
ExpensesUS$90.37m
Earnings-US$18.31m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.32
Gross Margin72.26%
Net Profit Margin-18.36%
Debt/Equity Ratio0%

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?

15.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAW ($28.38) is trading below our estimate of fair value ($33.39)

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 (6x) compared to the US Software industry average (4.7x).


Future Growth

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

-10.0%

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 (26.6% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: LAW's revenue (26.6% 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?

25.9%

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 (20%).


Return on Equity

High ROE: LAW has a negative Return on Equity (-6.65%), as it is currently unprofitable.


Financial Health

How is CS Disco's financial position?


Financial Position Analysis

Short Term Liabilities: LAW's short term assets ($288.2M) exceed its short term liabilities ($20.7M).

Long Term Liabilities: LAW's short term assets ($288.2M) exceed its long term liabilities ($101.0K).


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 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.


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 LAW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


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?

3.0yrs

Average management tenure


CEO

Kiwi Camara (37 yo)

8.08yrs

Tenure

US$583,926

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 ($USD583.93K) is below average for companies of similar size in the US market ($USD3.74M).

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


Leadership Team

Experienced Management: LAW's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: LAW's board of directors are considered experienced (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.


Top Shareholders

Company Information

CS Disco, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: CS Disco, Inc.
  • Ticker: LAW
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$1.635b
  • Shares outstanding: 57.62m
  • Website: https://www.csdisco.com

Number of Employees


Location

  • CS Disco, Inc.
  • 3700 N. Capital of Texas Highway
  • Suite 150
  • Austin
  • Texas
  • 78746
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 23:15
End of Day Share Price2022/01/21 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.