# LegalZoom.com Inc. (LZ) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Industrials / Professional Services. Price $6.69, market value $1.1 billion.

## Valuation
- **P/E (trailing): 74.3×** (5-yr avg 110.8×, 3-yr avg 110.8×). LegalZoom.com Inc. trades at 74.3× trailing earnings, well below its own five-year average of 110.8×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 8.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.4×**. Each dollar of revenue is priced at 1.4×.
- **Price / book: 8.8×**. The shares trade at 8.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 13.1%** (5-yr avg 4.9%). Free cash flow equals 13.1% 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: 1.3%**. The inverse of the P/E: 1.3% 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: 3.95**. A Z-score of 3.95 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.

## Analyst view
- **Analyst consensus: buy** (5 analysts). 5 analysts cover LegalZoom.com Inc.; the consensus is buy, with an average price target of $7.60 (+14% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -30.5%** (YTD -30.2%, 3-mo -16.0%). The shares are down 30.5% over twelve months including dividends.
- **From 52-week high: -46.0%** (28.2% above the low). Trading 46% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 63**. An RSI of 63 is neutral.
- **Beta (1 yr): 0.55** (volatility 60%). Beta of 0.55 against the S&P 500: the shares move much less than the market.

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

Not investment advice.