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LegalZoom.com, Inc. (LZ) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

LegalZoom.com, Inc.

LZMarket cap $0.99BPrice $5.8

Country🇺🇸United States

SectorIndustrials

IndustryProfessional Services

LegalZoom sells online legal help — wills, LLCs, trademarks — to everyday people and small businesses who'd otherwise pay lawyers hundreds per hour. It's helped form over 4 million companies since launch, making DIY legal paperwork mainstream.

In Bastion Portfolios?

52W Return-42%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+7%6

Revenue Forecast

Rev CAGR (1y)+6%5

Rev CAGR (3y)+6%4

Rev CAGR (5y)+14%8

Earnings Forecast

EPS Growth Y+1+736%10

EPS Growth Y+2+13%7

EPS Growth Y+3+12%7

Quality

Margins

EBIT Margin4%2

Net Income Margin2%3

Free Cash Flow Margin19%8

Debt

Net Debt/EBITDA-3.010

Efficiency

ROE10%5

ROA3%5

Earnings Stability66

GEAR+AVERAGE66

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)710

P/E Ratio (Forward 3y)610

P/BV7.82

EV Multiples

EV/EBITDA Fwd410

EV/EBIT Fwd610

Yield

Free Cash Flow Yield15.1%10

Dividend Yieldna–

Momentum

Short term

1 month return-4%6

3 month return-20%2

YTD return-42%1

Mid term

Price vs 52wHigh47%1

1 year return-42%1

Long term

3 year return-45%1

5 year return-74%1

Risk Shield

Price Risk

Beta1.04

Volatility63%2

Free Cash Flow

Free Cash Flow Margin19%8

Free Cash Flow Yield15.1%10

Quality

ROCE19%8

Earnings Stability66

Net Debt/EBITDA-3.010

02Growth

Is it actually growing, and how fast?

LZLegalZoom.com

Revenue FY25$756M

GROWTH RATING↗

AVERAGE56 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+7%6

Revenue, next 1Y+6%5

Revenue, next 3Y, CAGR+6%4

Revenue, next 5Y, CAGR+14%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+736%10

EPS growth, FY27E+13%7

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

The runway holds up: revenue is set to grow 14%/yr over five years.8/10

Earnings are set to grow faster than sales (EPS about 13%/yr vs revenue 6%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 56% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 7%/yr over the last 3 years and is set to keep growing around 6%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK4 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%6

3-month return-20%2

YTD return-42%1

MID & LONG-TERM▾SCORE

% of 52-week high47%1

1-year return-42%1

3-year return-45%1

5-year return-74%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-4%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-45% over three years and -74% over five), behind 90% of the market.

It's down 42% over the past year, now 53% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-20%) and so far this year (-42%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on LegalZoom.com, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

LZLegalZoom.com

Revenue FY25$756M

GROWTH RATING↗

AVERAGE56 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+7%6

Revenue, next 1Y+6%5

Revenue, next 3Y, CAGR+6%4

Revenue, next 5Y, CAGR+14%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+736%10

EPS growth, FY27E+13%7

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

The runway holds up: revenue is set to grow 14%/yr over five years.8/10

Earnings are set to grow faster than sales (EPS about 13%/yr vs revenue 6%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 56% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 7%/yr over the last 3 years and is set to keep growing around 6%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK4 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%6

3-month return-20%2

YTD return-42%1

MID & LONG-TERM▾SCORE

% of 52-week high47%1

1-year return-42%1

3-year return-45%1

5-year return-74%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-4%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-45% over three years and -74% over five), behind 90% of the market.

It's down 42% over the past year, now 53% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-20%) and so far this year (-42%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on LegalZoom.com, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community