LegalZoom.com Inc (LZ) Stock Analysis
Verdict: WATCH (do not buy)
Robust 14.2% FCF yield is capped by execution misses and razor-thin 2.1% net margins, keeping the model positioned on HOLD.
Investment score: 50/100
Analysis as of
Is LegalZoom.com Inc stock worth reviewing? The TradeMates thesis
LegalZoom offers strong free cash flow generation ($147.9M in 2025) and a fortified balance sheet ($203.1M cash vs $24.4M debt), but persistent earnings misses and weak operating margins (4.4%) keep valuation gains constrained.
7-factor investment score
- Valuation: 52/100 (weight 20%)
- Financial Health: 68/100 (weight 15%)
- Technical Momentum: 38/100 (weight 15%)
- Earnings Quality: 32/100 (weight 15%)
- Insider Sentiment: 45/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
LegalZoom.com Inc opportunities and risks
What speaks for LZ
- Strong Free Cash Flow Conversion
What speaks against LZ
- Net Margin Compression and GAAP Dilution
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| LZ | 64.2x | 1.3x | 10.3x | 66.7% | 2.1% | 14.2% |
| TIC | n/a | 1.0x | 15.3x | 32.0% | -5.6% | -0.1% |
| INOD | 39.6x | 5.8x | 24.0x | 42.6% | 14.7% | 11.8% |
| ICFI | 17.9x | 0.9x | 12.2x | 35.6% | 4.9% | 12.6% |
| WLDN | 18.1x | 1.6x | 15.9x | 37.8% | 8.8% | 5.1% |
| CRAI | 21.5x | 1.3x | 5.0x | 45.5% | 6.2% | -2.6% |
| Peer median | 18.1x | 1.3x | 15.3x | 37.8% | 6.2% | 5.1% |
Frequently asked questions about LegalZoom.com Inc (LZ)
Is LZ stock a good investment?
The TradeMates model rates LegalZoom.com Inc as WATCH (do not buy) with an investment score of 50/100. LegalZoom offers strong free cash flow generation ($147.9M in 2025) and a fortified balance sheet ($203.1M cash vs $24.4M debt), but persistent earnings misses and weak operating margins (4.4%) keep valuation gains constrained. This is algorithmic model output, not personal investment advice.
Is LZ stock a buy?
The TradeMates model verdict for LZ is WATCH (do not buy) with an investment score of 50/100. Treat this as a model signal to review, not a personal buy recommendation.