# LegalZoom.com Inc. (LZ) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $6.13, market value $1.0 billion.

## Valuation
- **P/E (trailing): 68.1×** (5-yr avg 110.8×, 3-yr avg 110.8×). LegalZoom.com Inc. trades at 68.1× trailing earnings, well below its own five-year average of 110.8×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 7.6×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.3×**. Each dollar of revenue is priced at 1.3×.
- **Price / book: 8.1×**. The shares trade at 8.1× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 14.3%** (5-yr avg 4.9%). Free cash flow equals 14.3% of the market value, above its five-year average of 4.9%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 1.5%**. The inverse of the P/E: 1.5% of the price is earned each year.

## Profitability
- **Gross margin: 66.7%**. LegalZoom.com Inc. keeps 66.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 4.1%**. 4.1% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.0%**. 2.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.0%**. 9.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: -82.3%**. Return on all capital, debt included, is -82.3%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 3.3%**. Each dollar of assets produces 3.3% of profit.

## Growth
- **Revenue growth (1 yr): 10.9%** (3-yr 6.8%/yr, 5-yr 9.9%/yr). Revenue grew 10.9% over the last year, against 9.9% a year compounded over five years.
- **EPS growth (1 yr): -50.0%** (5-yr 5.9%/yr). Earnings per share fell 50.0%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 41.9%/yr**. Free cash flow has compounded at 41.9% a year over three years.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Current ratio: 0.76** (quick 0.76). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 3.78**. A Z-score of 3.78 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. LegalZoom.com Inc. does not currently pay a dividend.

## Price and momentum
- **Total return (1 yr): -43.5%** (YTD -38.3%, 3-mo 6.8%). The shares are down 43.5% over twelve months including dividends.
- **From 52-week high: -50.6%** (17.4% above the low). Trading 51% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 0.79** (volatility 60%). Beta of 0.79 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=LZ · Page: https://foliofundamentals.com/stocks/lz

Not investment advice.