Lazard Ltd
Lazard Ltd Fundamental Analysis
Lazard Ltd (LAZ) shows moderate financial fundamentals with a PE ratio of 16.79, profit margin of 7.50%, and ROE of 30.96%. The company generates $3.0B in annual revenue with strong year-over-year growth of 19.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LAZ's fundamental strength across five key dimensions:
Efficiency Score
WeakLAZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLAZ trades at attractive valuation levels.
Growth Score
ModerateLAZ shows steady but slowing expansion.
Financial Health Score
ModerateLAZ shows balanced financial health with some risks.
Profitability Score
ModerateLAZ maintains healthy but balanced margins.
Key Financial Metrics
Is LAZ Expensive or Cheap?
P/E Ratio
LAZ trades at 16.79 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LAZ's PEG of -1.20 indicates potential undervaluation.
Price to Book
The market values Lazard Ltd at 4.55 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.09 times EBITDA. This is generally considered low.
How Well Does LAZ Make Money?
Net Profit Margin
For every $100 in sales, Lazard Ltd keeps $7.50 as profit after all expenses.
Operating Margin
Core operations generate 11.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.96 in profit for every $100 of shareholder equity.
ROA
Lazard Ltd generates $4.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lazard Ltd produces operating cash flow of $501.19M, showing steady but balanced cash generation.
Free Cash Flow
Lazard Ltd generates strong free cash flow of $497.76M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.25 in free cash annually.
FCF Yield
LAZ converts 13.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
29.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How LAZ Stacks Against Its Sector Peers
| Metric | LAZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.79 | 18.50 | Neutral |
| ROE | 30.96% | 809.00% | Weak |
| Net Margin | 7.50% | 2211.00% | Weak |
| Debt/Equity | 2.95 | 0.90 | Weak (High Leverage) |
| Current Ratio | 29.35 | 691.82 | Strong Liquidity |
| ROA | 4.79% | -24320.00% (disorted) | Weak |
LAZ outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lazard Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.48%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
21.77%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
36.56%
Industry Style: Value, Dividend, Cyclical
High Growth