Lazard, Inc. (LAZ) stock analysis

P/E above its 5-year median

Lazard's P/E of 25.4 is above its own 5-year median of 16.4.

P/E above the industry

Lazard's P/E of 25.4 is above the Services Allied with the Exchange of Securities median of 21.0.

EV/EBITDA above its 5-year median

Lazard's EV/EBITDA of 11.2 is above its 5-year median of 8.8.

P/B above the industry

Lazard's price-to-book of 4.85 is above the Services Allied with the Exchange of Securities median of 3.70.

Trading above fair value

The share price of $41.90 is above our fair value estimate of $35.82.

Margin of safety under 20%

The price is 17.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -14.8% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -32.4% over the last twelve months, against a 5-year average of -10.1% a year.

Growing faster than the industry

Revenue grew 9.0% over the last twelve months; the Services Allied with the Exchange of Securities median is 8.7%.

Guidance issued

The latest outlook (2027 anticipated combined revenue, May 1, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 20.6% over the last twelve months and averaged 34.3% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Lazard's return on equity of 20.6% is above the Services Allied with the Exchange of Securities median of 15.7%.

Earnings shrank over 5 years

Net income shrank 10.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.5% over the last twelve months, against a 5-year average of 8.4%.

Net margin below the industry

Lazard's net margin of 5.5% is below the Services Allied with the Exchange of Securities median of 16.3%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense 3.0 times; we look for at least 5.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.18; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Lazard paid dividends worth 3.6% of the share price over the last twelve months.

Yield below Treasuries

The 3.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Lazard yields 3.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 104% of net income, leaving little room.

Covered by free cash flow

Dividends take 28.1% of free cash flow.