Legalzoom.com, Inc.

Technology
EDP Services
www.legalzoom.com

Earnings Score
Moat Score

Market Cap $1.42B
PE 58
Debt $NaN
Cash $112.48M
EV $NaN
FCF $78.19M

Earnings

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Sales & Net Margins

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Earnings	$24.49M
EBIT	$41.11M
ROE	41%
ROA	12%
FCF	$78.19M
Equity	$60.14M
Growth Stability	1
PE	57.98
PEG	5.01
PB	23.61
P/FCF	18.16
P/S	2.09
Price/Cash	0.08
Net Margins	3%
Gross Margins	64%
Op. Margins	6%
Earnings CAGR	12%
Sales Growth YoY	1%
Sales Growth QoQ	-5%
Sales CAGR	8%
FCF CAGR	19%
Equity CAGR	-20%
Earnings Stability	-0.54
Earnings Growth YoY	47%

Earnings Growth QoQ	741%
Earnings CAGR 5Y	12%
Sales CAGR 5Y	8%
FCF CAGR 5Y	19%
Equity CAGR 5Y	-20%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	66%
Equity CAGR 3Y	-27%
Market Cap	$1.42B
Revenue	$678.84M
Assets	$348.84M
Cash	$112.48M
Shares Outstanding	173.17M
Earnings Score	6%
Moat Score	87%
Working Capital	-105.41M
Current Ratio	0.61
Gross Profit	$436.22M
Shares Growth 3y	-1%
Equity Growth QoQ	-1%
Equity Growth YoY	-59%

Assets & ROA

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Stockholders Equity & ROE

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LegalZoom.com, Inc. is an American online legal technology and services company launched in 2001.It helps its customers create legal documents without necessarily having to hire a lawyer. Available documents include wills and living trusts, business formation documents, copyright registrations, and trademark applications. The company also offers attorney referrals and registered agent services.

SEC Filings

Direct access to Legalzoom.com, Inc. (LZ) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Legalzoom.com, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Legalzoom.com, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 12%

Stability -54%

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Legalzoom.com, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Legalzoom.com, Inc..

Years

Calculation mode

= $2.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$78M	$93M	$110M	$130M	$155M	$183M	$217M	$258M	$305M	$362M	$429M	$4.3B
DCF		$84M	$91M	$98M	$106M	$114M	$123M	$132M	$142M	$154M	$166M	$1.7B
Value	$2.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	1%	2%	-19%	-8%	2%	3%
ROA	-	19%	-20%	-10%	7%	12%
ROE	-	-1%	-55%	-34%	8%	41%

Bad Net Margins (3.29%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	6.25	0	-	-	-
Debt over Equity	-	-0.94	0	-	-	-
Growth Stability	-	-	-	-	-	1

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	15%	22%	8%	7%	8%
Earnings YoY growth	-	33%	-2K%	-55%	-129%	12%
Equity YoY growth	-	-1%	-136%	-28%	19%	-20%
FCF YoY growth	-	140%	-49%	22%	79%	19%