LegalZoom.com, Inc. cash flow to debt ratio of 730.64% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

LegalZoom.com, Inc.'s free cash flow has increased 48.00% from $99.94M last year to $147.92M, signaling increasing performance

LegalZoom.com, Inc.'s debt to equity ratio is 0.12, which means that the company's assets are healthy financed, signaling financial stability.

LegalZoom.com, Inc.'s debt has increased relative to shareholder equity from 0.08 last year to 0.12 today, signaling weakened financials

LegalZoom.com, Inc. has a net cash position, so leverage is healthy.

LegalZoom.com, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

LegalZoom.com, Inc.'s profit margin has decreased (51.60%) in the last year from 4.39% to 2.13%, signaling decreasing performance

LegalZoom.com, Inc.'s short-term liabilities of $318.52M exceed its short-term assets of $239.51M, signaling financial risk

LegalZoom.com, Inc.'s return on assets of 3.61% is lower than the 5.00% threshold, indicating inefficient asset utilization

LegalZoom.com, Inc.'s return on equity of 10.41%, is lower than 15.00%, indicating bad performance

LegalZoom.com, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

LegalZoom.com, Inc. had positive net income in 3 out of 5 years, indicating stable and consistent earnings

LegalZoom.com, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

LegalZoom.com, Inc. has a free cash flow yield of 15.17%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

LegalZoom.com, Inc.'s yearly earnings has decreased 48.51% since last year from $29.96M to $15.43M, signaling decreasing performance

LegalZoom.com, Inc.'s yearly revenue has increased 10.88% since last year from $681.88M to $756.04M, signaling increasing performance

ROIC 9.90% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

LegalZoom.com, Inc.'s 3-year revenue CAGR of 6.84% is positive, indicating growing revenue over the past 3 years

LegalZoom.com, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

LegalZoom.com, Inc. had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

LegalZoom.com, Inc. is undervalued relative to its fair value price of 15.82 based on Discounted Cash Flow model

LegalZoom.com, Inc. has an earnings yield of 1.74%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

LegalZoom.com, Inc. is overvalued relative to its fair value price of 4.22 based on EBITDA multiple model

LegalZoom.com, Inc. has an EV/EBITDA ratio of 9.81x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

LegalZoom.com, Inc. has insufficient data to evaluate this check.

LegalZoom.com, Inc. has a PEG-ratio over 1 which is considered overvalued

LegalZoom.com, Inc. has a price-to-book ratio of 7.60x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

LegalZoom.com, Inc. has a price-to-sales ratio of 1.22x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue