IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
© 2026 Blank Capital Research. All rights reserved. System Version: Aegis V8 (God Mode).
Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2610
Positioning
Market Dominance
Services
Business Services
$1.9B
Daniel A. Wernikoff
LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company's platform offers products and services, including business formations, creating estate planning documents, protecting intellectual property, completing certain forms and agreements.
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = LZ ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | 21.3% | 18.6% | 64.5% | 35.7% | 39.5% | 6.5% | 0.0% | 0.0x | $644M | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | 15.4% | 12.6% | 38.7% | 17.1% | 17.0% | -39.7% | 0.0% | 0.0x | $439M | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 28.1% | 16.8% | 48.1% | 23.8% | 18.5% | 78.6% | 0.0% | 37.0x | $220M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | 12.4% | 2.9% | 100.0% | 28.2% | 26.2% | 5.5% | 0.8% | 264.0x | $19.4B | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.6% | 7.8% | 43.8% | 7.4% | 5.9% | 31.2% | 0.0% | 0.0x | $857M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 18.0% | 4.6% | 97.3% | 52.2% | 32.7% | -3.4% | 0.0% | 271.0x | $8.0B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | 9.4% | 4.9% | 55.5% | 8.7% | 7.7% | 13.6% | 1.3% | 7.0x | $78.0B | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | 22.1% | 15.6% | 62.5% | 28.1% | 28.7% | -1.0% | 2.8% | 9.0x | $56.6B | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 21.4% | 8.0% | 100.0% | 10.0% | 7.5% | 14.1% | 0.0% | 27.0x | $1.8B | VS | |
$LZ LEGALZOOM.COM, INC. | 46 | 55 | 46 | 44 | 57.0x | 40.6x | 10.1% | 3.7% | 65.9% | 4.1% | 2.9% | 7.2% | 0.0% | 173.0x | $1.9B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.3% | 1.9% | 59.6% | 3.5% | 2.3% | 7.8% | 0.0% | 0.3x | - | REF |
LEGALZOOM.COM, INC. (LZ) receives a "Reduce" rating with a composite score of 46.2/100. It ranks #2610 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
Sign in to join the discussion.
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for LZ.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 55 | 68 | -13DRAG |
| MOMENTUM | 44 | 41 | +3NEUTRAL |
| VALUATION | 46 | 45 | +1NEUTRAL |
| INVESTMENT | 31 | 36 | -5NEUTRAL |
| STABILITY | 47 | 46 | +1NEUTRAL |
| SHORT INT | 64 | 79 | -15DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 10.1% (sector 5.3%)
GM 66% vs sector 60%, OM 4% vs sector 4%
Capital turnover N/A
Rev growth 7%, 5yr history
Interest coverage 42.7x, Net debt/EBITDA -36.5x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate LEGALZOOM.COM, INC. (LZ) as a Reduce with a composite score of 46.2/100 at a current price of $6.38. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
LEGALZOOM.COM, INC. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 46.2/100 places it at rank #2610 in our full universe.
Narrow
High
Poor
Fair Value
Gross margins of 66% signal strong pricing power.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 57.0x leaves little room for execution misses.
Leverage of 173% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
LEGALZOOM.COM, INC. represents a reduce based on multi-factor quantitative performance.
LEGALZOOM.COM, INC. receives a Reduce rating from our analysis, with a composite score of 46.2/100 and 2 out of 5 stars, ranking #2610 out of 7,333 stocks. LZ's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 55/100, LZ shows adequate but unremarkable business quality. The company reports a return on equity of 10.1% (sector avg: 5.3%), gross margins of 65.9% (sector avg: 59.6%), net margins of 2.9% (sector avg: 2.3%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
With a value score of 46/100, LZ appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 56.95x, an EV/EBITDA of 40.62x, a P/B ratio of 5.76x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
LEGALZOOM.COM, INC.'s investment score of 31/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 7.2% vs. a sector average of 7.8% and a return on assets of 3.7% (sector: 1.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
LZ is currently showing below-average momentum at 44/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 7.2% year-over-year, while a beta of 1.13 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 47/100, LZ exhibits average financial resilience. Key stability metrics include a beta of 1.13 and a debt-to-equity ratio of 173.00x (sector avg: 0.3x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
LZ carries a short interest score of 64/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 173.00x), small-cap liquidity risk. At $1.9B market cap (small-cap), LEGALZOOM.COM, INC. offers reasonable institutional liquidity.
LEGALZOOM.COM, INC. is a small-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #2610 of 7,333 overall (64th percentile). Key comparisons include ROE of 10.1% exceeding the 5.3% sector median and operating margins of 4.1% above the 3.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While LZ currently exhibits a REDUCE profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
Upgrade catalyst
Improvement in Investment (31) would have the largest impact on the composite score.
EV/EBITDA 246% ABOVE SECTOR MEDIAN
ROE 90% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 11% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
MOUNTAIN VIEW, Calif., February 24, 2026--LegalZoom.com, Inc. (Nasdaq: LZ), America’s #1 online legal services company, today announced LegalZoom’s attorney-services integration directly into the Claude ecosystem, powered by Anthropic, with the launch of LegalZoom’s Connector.
LegalZoom brings human-in-the-loop legal expertise to AI. No hourly billing. No retainers. Just affordable, experienced legal support.LegalZoom.com, Inc. (NASDAQ:LZ), America's #1 online legal services company, today
UBS analyst Stephen Ju maintains LegalZoom.com (NASDAQ:LZ) with a Neutral and lowers the price target from $12 to $8.
Operator: Good day, and thank you for standing by. Welcome to the LegalZoom
LegalZoom.com Inc (LZ) reports robust financial performance with an 18% increase in Q4 revenue and strategic advancements in AI-driven services.