_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Legalzoom.Com, Inc. (XNAS:LZ) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
LZ
Name:
LEGALZOOM.COM, INC. (XNAS:LZ)
Sector:
8.83M
Industry:
Internet Content & Information
CEO:
Mr. Daniel A. Wernikoff
Total Employees:
1,218
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -142.68% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF LEGALZOOM.COM, INC.(LZ) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND INTERNET CONTENT & INFORMATION INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
9.7
One Month Price Target:
$9.75
Six Month Price Target :
$10.02
Likely Price in One Year's Time:
Ticker:
$10.35
Likely Trading Range Today Under (Normal Volatility)
$9.56
Price Upper limit ($) :
$9.77
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$8.86
This week:
$7.81
This month :
$5.93
Other Primary facts
Market Cap:
1.92B
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
194.56M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
18.02%
-16.31%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$13.63
$11.93
$5.77
$7.47
Medium risk (<10%) entry points
Buy Call
Sell Call
$11.37
Buy Put:
Sell Put:
$11.01
$8.02
$8.39
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
LZ
Sharpe Ratio:
-9.48%
Comparison:
LZ, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -30412.82% lower than the industry
& is -515.97% lower than the market/S&P 500 average
Average Returns/Yield of
LZ
Daily returns:
-0.38%
Weekly returns:
-1.88%
Monthly returns:
-7.51%
Yearly returns:
0.13%
Comparison of returns:
Average annual returns/yield (last 3 years) is -67108.83% below industry average
Classification:
LZ, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.15
Statistical test of Returns:
LZ has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
4.05%
Weekly Volatility:
9.06%
Monthly Volatility:
18.12%
Yearly Volatility:
62.77%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
-
-
Value at Risk Analysis (VaR)
Daily VaR:
-8.70%
Weekly VaR:
-19.45%
Monthly VaR:
-38.89%
How Much Can the price of
LZ
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-39%
Worst case (decline):
>85%
This translates to price declining to:
$5.94
This translates to price declining to:
$1.46
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
LZ is a 174.48% riskier investment compared to the market/S&P 500 & is 135.15% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -1.08% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
LZ
Beta in relation to market/S&P 500--1.00
Expected beta in 1 year's time:
-
Expected beta in 3 year's time:
-
Unlevered (debt free) Beta:
0.98
Beta in relation to Nasdaq (XNAS):
-0.012
Beta in relation to all global stocks::
0.142
Beta Comparison & Analysis
Beta of competitors/peers::
-
-
Average Industry Beta:
1.399
Beta is -28.72% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
32.43%
Sustainable growth rate is -1.15% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-1.000
Alpha is 694.26% above industry average alpha yield
Alpha is -6369% below the market average
Analysis of Cost of Capital of
LZ
Equity cost of capital:
0.100
Equity cost of capital is -21.61% below industry mean WACC
Unlevered (without debt) cost of capital:
9.81%
Before-tax cost of debt:
379.17%
After-tax cost of debt:
299.54%
Overall debt rating:
Non-investment grade (junk/speculative grade
Weighted average cost of capital (WACC):
299.54%
WACC is 26.50% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$3.06
Revenue growth rate per share of (3Y):
9.94
Annual revenue growth rate is -18.48% below industry average
EPS:
$0.12
Expected Annual growth rate of EPS (3Y):
40.47%
Expected future EPS growth rate is 61.66% higher than the Internet Content & Information industry
Free cash flow (FCF) per share:
$0.11
-
-
Debt per share
$0.02
EBITDA per share
-$0.50
Valuation Analysis Today of
LZ
P/E Ratio:
2940.41
P/E Ratio of Competitors/Peers:
-
- & is 7653.24% higher than the industry
Stock price/value with industry average P/E ratio: $4.55
LZ is 113.14% overvalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
3.17
Price to sales ratio is -37.84% below the industry mean
P/B (Price to book value ratio):
9.94
Price to free cash flow: 86.21
Price to free cash flow ratio is -21.05% lower than the industry
Net income growth rate (3Y):
-678.47%
Net income growth rate is 757.80% higher than the average industry net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
1.85%
Net debt to equity ratio:
-127.67%
Debt to assets ratio:
0.78%
Net debt to assets ratio:
-53.74%
Debt-to-asset ratio is -98.22% below industry average
Ability to repay debt:
Interest coverage ratio:
-5
Interest coverage ratio is -141.33% less than industry average
Looking forward:
Debt growth rate:
-99.78%
Annual debt growth is -123% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.11%
Analysis of Key Statistics
Correlation of price movement with the market:
0.019
Statistical significance of correlation:
LZ does not have a has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.473
Stock price is -95.90% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.473
Correlation of price movement with Nasdaq (^IXIC):
0.051
Covariance of price movement with the market:
0.073
Kurtosis
1.671
Returns are more concentrated around the mean (platykurtic), compared to a normal distribution
Skewness of returns:
0.135
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
LZ
Gross Profit Margin Ratio:
265%
Operating Profit Margin Ratio:
-17.96%
Operating profit margin is -3280.87% lower than the industry
Net Profit Margin Ratio:
265%
Effective Tax Rate:
3.76%
Effective tax rate is -70.76% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-68.19%
Return on equity (ROE) is 689.65% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-28.70%
Return on assets (ROA) is -1947.29% lower than the industry
Financial Leverage:
1.0x
Current Ratio:
1.12
Current ratio is -68.77% below industry average
Cash Conversion Cycle (days):
-77.8
Cash conversion cycle is -215.00% below industry average
The remaining useful life of property plant & equipment is: 7.7 years
Stock based compensation to net income ratio:
-16.89%
In-depth Efficiency Analysis
Revenue generated per employee:
488.2K
Each employee generates -45% less revenue than industry average revenue per employee
EBITDA generated per employee:
- 79.5K
Each employee generates -176% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 106.3K
Each employee generates -339% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
7.2K
Each employee generates -93% less free cash flow than industry average revenue per employee
Assets/Capital per employee
137.6K
Each employee generates -93% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 100.66%
Growth rate in R&D investment/expenditure is -1811.25% lower than the industry
Competitors/Peer firms of
LZ
-
-
-
-
-
-
-
-
-
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
594.66M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
201.34M
393.31M
91.46M
122.91M
407.70M
284.79M
-
499.16M
-
19.38M
18.29M
- 96830.00K
- 106775.00K
- 129450.00K
- 134505.00K
- 5055.00K
- 129450.00K
Statement of Cash Flow
Date:
Period:
5.77M
Differed Income Tax :
2.79M
Stock Based Compensation :
21.87M
Change in Working Capital :
12.31M
Accounts Receivables:
- 2150.00K
Other Working Capital:
17.19M
Other Non-Cash Items:
1.61M
Net Cash Provided by Operating Activities:
13.74M
Investments in PP&E:
- 4911.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
247.50M
-
247.50M
12.78M
-
23.17M
283.46M
53.06M
59.99M
15.36M
1.18M
24.85M
13.16M
167.60M
-
451.06M
31.75M
1.61M
2.73M
163.73M
56.51M
253.59M
3.51M
2.83M
7.62M
-
261.21M
198.00K
- 779723.00K
- 355.0K
969.73M
March 31, 2022 at 6:00:00 AM
700.51M
189.85M
451.06M
-
5.11M
- 242392.0K
-
304.00K
- 4607.00K
- 4.00K
-
- 1105.00K
-
237.00K
- 872.00K
- 51.00K
8.21M
247.50M
239.30M
13.74M
- 4911.00K
8.83M
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
LZ
2023
2024
2025
2026
2027
$10.40
$139.81
$149.18
$159.17
$169.84