Why is LegalZoom.com, Inc. ?
1
The company has declared negative results for the last 5 consecutive quarters
- The company has declared negative results in Mar 25 after 2 consecutive negative quarters
- INTEREST(HY) At USD 1.47 MM has Grown at 284.07%
- PRE-TAX PROFIT(Q) At USD 4.46 MM has Fallen at -60.5%
- NET PROFIT(Q) At USD 1.29 MM has Fallen at -76.35%
2
With ROE of 9.58%, it has a very expensive valuation with a 5.51 Price to Book Value
- Over the past year, while the stock has generated a return of -35.01%, its profits have fallen by -50.1%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -35.01% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is LegalZoom.com, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
LegalZoom.com, Inc.
-35.01%
-0.59
57.93%
S&P 500
24.03%
1.82
13.21%
Quality key factors
Factor
Value
Sales Growth (5y)
9.94%
EBIT Growth (5y)
-24.96%
EBIT to Interest (avg)
8.58
Debt to EBITDA (avg)
2.12
Net Debt to Equity (avg)
-1.10
Sales to Capital Employed (avg)
5.61
Tax Ratio
33.63%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
0
ROE (avg)
6.43%
Valuation Key Factors 
Factor
Value
P/E Ratio
58
Industry P/E
Price to Book Value
5.51
EV to EBIT
58.42
EV to EBITDA
12.43
EV to Capital Employed
-27.86
EV to Sales
0.99
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
9.58%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 173.93 MM
RAW MATERIAL COST(Y)
Fallen by 0.17% (YoY
NET SALES(Q)
Highest at USD 206.78 MM
-27What is not working for the Company
INTEREST(HY)
At USD 1.47 MM has Grown at 284.07%
PRE-TAX PROFIT(Q)
At USD 4.46 MM has Fallen at -60.5%
NET PROFIT(Q)
At USD 1.29 MM has Fallen at -76.35%
ROCE(HY)
Lowest at 6.83%
INTEREST COVERAGE RATIO(Q)
Lowest at 2,294.67
Here's what is working for LegalZoom.com, Inc.
Operating Cash Flow
Highest at USD 173.93 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 206.78 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Raw Material Cost
Fallen by 0.17% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for LegalZoom.com, Inc.
Interest
At USD 1.47 MM has Grown at 284.07%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
At USD 4.46 MM has Fallen at -60.5%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 1.29 MM has Fallen at -76.35%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest Coverage Ratio
Lowest at 2,294.67
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest






