(LZ) LegalZoom.com - Overview
Sector: Industrials | Industry: Specialty Business Services | Exchange: NASDAQ (USA) | Market Cap: 1.106m USD | Total Return: -30.9% in 12m
Avg Turnover: 18.7M
EPS Trend: 94.7%
Qual. Beats: 0
Rev. Trend: 95.8%
Qual. Beats: 5
Warnings
P/E ratio 107.4
Altman Z'' -12.31 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
LegalZoom.com, Inc. operates a digital platform providing legal, compliance, and business management solutions for small businesses and consumers in the United States. Its core offerings include business formation services for LLCs and corporations, intellectual property filings, and estate planning tools such as wills and trusts. The company utilizes a freemium or tiered subscription model to generate recurring revenue through registered agent services, compliance monitoring, and legal advisory plans.
The business formation sector is highly sensitive to macroeconomic trends and domestic new business application rates. LegalZoom competes in the broader legal technology market by automating document preparation and connecting users with a network of independent attorneys. Investors may find it useful to examine ValueRay for deeper insights into the companys valuation and growth metrics. Headquartered in Mountain View, California, the company has expanded its ecosystem to include ancillary services like virtual mail, bookkeeping, and e-signature tools.
- New business formation rates dictate core revenue growth and customer acquisition
- Subscription service retention drives recurring revenue and long-term operating margins
- Shift toward higher-priced compliance and bookkeeping bundles expands average order value
- Interest rate fluctuations impact small business startup activity and legal spending
- Regulatory changes to beneficial ownership reporting increase demand for compliance filings
| Net Income: 11.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.30 > 0.02 and ΔFCF/TA 8.12 > 1.0 |
| NWC/Revenue: -12.21% < 20% (prev -10.73%; Δ -1.48% < -1%) |
| CFO/TA 0.36 > 3% & CFO 174.8m > Net Income 11.4m |
| Net Debt (-167.9m) to EBITDA (73.9m): -2.27 < 3 |
| Current Ratio: 0.71 > 1.5 & < 3 |
| Outstanding Shares: last quarter (177.0m) vs 12m ago -1.99% < -2% |
| Gross Margin: 65.89% > 18% (prev 0.66%; Δ 6.52k% > 0.5%) |
| Asset Turnover: 152.2% > 50% (prev 129.7%; Δ 22.53% > 0%) |
| Interest Coverage Ratio: 14.73 > 6 (EBITDA TTM 73.9m / Interest Expense TTM 1.79m) |
| A: -0.19 (Total Current Assets 228.3m - Total Current Liabilities 323.5m) / Total Assets 491.9m |
| B: -2.39 (Retained Earnings -1.18b / Total Assets 491.9m) |
| C: 0.05 (EBIT TTM 26.3m / Avg Total Assets 512.3m) |
| D: -3.41 (Book Value of Equity -1.18b / Total Liabilities 344.9m) |
| Altman-Z'' = -12.31 = D |
| DSRI: 1.27 (Receivables 27.9m/19.5m, Revenue 779.7m/690.8m) |
| GMI: 0.99 (GM 65.89% / 65.51%) |
| AQI: 1.00 (AQ_t 0.39 / AQ_t-1 0.39) |
| SGI: 1.13 (Revenue 779.7m / 690.8m) |
| TATA: -0.33 (NI 11.4m - CFO 174.8m) / TA 491.9m) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 6.29 with a total of 2,940,514 shares traded.
Over the past week, the price has changed by -2.48%,
over one month by -2.78%,
over three months by -10.53% and
over the past year by -30.88%.
LegalZoom.com has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold LZ.
- StrongBuy: 1
- Buy: 1
- Hold: 6
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 8.1 | 29.4% |
P/E Trailing = 107.4167
P/E Forward = 6.2228
P/S = 1.4188
P/B = 7.4427
Revenue TTM = 779.7m USD
EBIT TTM = 26.3m USD
EBITDA TTM = 73.9m USD
Long Term Debt = 10.5m USD (estimated: total debt 15.2m - short term 4.74m)
Short Term Debt = 4.74m USD (from shortTermDebt, last quarter)
Debt = 15.2m USD (from shortLongTermDebtTotal, last quarter) (leases 15.2m already included)
Net Debt = -167.9m USD (calculated: Debt 15.2m - CCE 183.2m)
Enterprise Value = 938.3m USD (1.11b + Debt 15.2m - CCE 183.2m)
Interest Coverage Ratio = 14.73 (Ebit TTM 26.3m / Interest Expense TTM 1.79m)
EV/FCF = 6.36x (Enterprise Value 938.3m / FCF TTM 147.6m)
FCF Yield = 15.73% (FCF TTM 147.6m / Enterprise Value 938.3m)
FCF Margin = 18.93% (FCF TTM 147.6m / Revenue TTM 779.7m)
Net Margin = 1.46% (Net Income TTM 11.4m / Revenue TTM 779.7m)
Gross Margin = 65.89% ((Revenue TTM 779.7m - Cost of Revenue TTM 265.9m) / Revenue TTM)
Gross Margin QoQ = 63.96% (prev 67.56%)
Tobins Q-Ratio = 1.91 (Enterprise Value 938.3m / Total Assets 491.9m)
Interest Expense / Debt = 11.75% (Interest Expense 1.79m / Debt 15.2m)
Taxrate = 21.0% (US default 21%)
NOPAT = 20.8m (EBIT 26.3m * (1 - 21.00%))
Current Ratio = 0.71 (Total Current Assets 228.3m / Total Current Liabilities 323.5m)
Debt / Equity = 0.10 (Debt 15.2m / totalStockholderEquity, last quarter 146.9m)
Debt / EBITDA = -2.27 (Net Debt -167.9m / EBITDA 73.9m)
Debt / FCF = -1.14 (Net Debt -167.9m / FCF TTM 147.6m)
Total Stockholder Equity = 178.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.23% (Net Income 11.4m / Total Assets 491.9m)
RoE = 0.84% (Net Income TTM 11.4m / Total Stockholder Equity 1.36b)
RoCE = 1.93% (EBIT 26.3m / Capital Employed (Equity 1.36b + L.T.Debt 10.5m))
RoIC = -207.4% (out of range, set to none) (NOPAT 20.8m / Invested Capital -10.0m)
WACC = 10.99% (E(1.11b)/V(1.12b) * Re(11.01%) + D(15.2m)/V(1.12b) * Rd(11.75%) * (1-Tc(0.21)))
Discount Rate = 11.01% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -37.78 | Cagr: -3.73%
[DCF] Terminal Value 69.93% ; FCFF base≈135.2m ; Y1≈154.9m ; Y5≈228.0m
[DCF] Fair Price = 14.60 (EV 2.34b - Net Debt -167.9m = Equity 2.51b / Shares 171.6m; r=10.99% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 94.75 | EPS CAGR: 26.99% | SUE: -0.58 | # QB: 0
Revenue Correlation: 95.85 | Revenue CAGR: 6.62% | SUE: 1.27 | # QB: 5
EPS current Quarter (2026-06-30): EPS=0.15 | Chg30d=-12.97% | Revisions=-64% | Analysts=9
EPS next Quarter (2026-09-30): EPS=0.21 | Chg30d=+3.59% | Revisions=+27% | Analysts=9
EPS current Year (2026-12-31): EPS=0.72 | Chg30d=-0.70% | Revisions=-27% | GrowthEPS=+16.6% | GrowthRev=+8.7%
EPS next Year (2027-12-31): EPS=0.82 | Chg30d=+2.02% | Revisions=+17% | GrowthEPS=+13.7% | GrowthRev=+6.6%
[Analyst] Revisions Ratio: -64%