Legalzoom.com (LZ) Fundamental Analysis: Revenue, Earnings & Valuation

9.84 / 10

Outperform

Fundamentally, LZ rates Outperform with a 9.84/10 score. Key drivers include high ROE growth, strong operating cash‑flow ratio, and solid diluted EPS growth, offset by declining net profit margins. Overall, the balance sheet and earnings quality are excellent.

Analysis Checks(6/10)

Shareholders’ equity attributable to parent company / Total liabilities (%)

Value0.51

Score2/3

Weight7.95%

1M Return0.21%

ROE (diluted) (YoY growth rate %)

Value4.59

Score3/3

Weight144.92%

1M Return3.16%

Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)

Value1.98

Score2/3

Weight2.70%

1M Return0.07%

Net cash flow from operating activities / Operating revenue (%)

Value23.57

Score2/3

Weight76.66%

1M Return1.99%

Net income-Revenue

Value-1.51

Score1/3

Weight-83.50%

1M Return-3.03%

Basic earnings per share (YoY growth rate %)

Value-47.06

Score2/3

Weight41.30%

1M Return1.05%

Net cash flow from operating activities (YoY growth rate %)

Value31.38

Score1/3

Weight-1.62%

1M Return-0.04%

Diluted earnings per share (YoY growth rate %)

Value-50.00

Score3/3

Weight88.09%

1M Return2.21%

Net profit attributable to parent company shareholders (YoY growth rate %)

Value-48.51

Score1/3

Weight-7.76%

1M Return-0.21%

Asset-MV

Value-0.55

Score0/3

Weight-168.74%

1M Return-7.51%

Is LZ undervalued or overvalued?

LZ scores 9.84/10 on fundamentals and holds a Discounted valuation at present. Backed by its 11.64% ROE, 2.04% net margin, 66.47 P/E ratio, 5.97 P/B ratio, and -47.06% earnings growth, these metrics solidify its Outperform investment rating.