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Lazard (LAZ)
NYSE:LAZ
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Lazard
(NYSE:LAZ)
72Outperform
Positive Factors
Advisory Revenue
The firm delivered 28% Advisory revenue growth, which we estimate will be at the high end of the peer group once all have reported.
Earnings
Lazard delivered a high quality 53% adjusted EPS beat on both revenues and efficiency ratios.
Growth Strategy
Management is confident in adding net 10-15 Managing Directors per year and achieving further productivity.
Negative Factors
Funding Delays
Elevated backlog, but market volatility lengthens funding time.
Market Volatility
Stock underperformed as forward outlook on comp ratio remains uncertain.
Net Outflows
Full qtr net outflows of -$3.6B were more than double Consensus estimates and a -6.4% annualized pace.
Lazard (LAZ) vs. S&P 500 (SPY)
Market Cap
$4.36B
Dividend Yield4.31%
Average Volume (3M)1.30M
Price to Earnings (P/E)16.2
Beta (1Y)1.37
Revenue Growth9.54%
EPS GrowthN/A
CountryUS
Employees3,253
SectorFinancial
Sector Strength87
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.56
Shares Outstanding94,147,390
10 Day Avg. Volume1,151,316
30 Day Avg. Volume1,297,201
Financial Highlights & Ratios
PEG Ratio1.62
Price to Book (P/B)6.43
Price to Sales (P/S)0.00
P/FCF Ratio5.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.67Price Target Upside-9.47% Downside
Rating ConsensusHold
Number of Analyst Covering6
Lazard Business Overview & Revenue Model
Company DescriptionLazard Ltd (LAZ) is a leading global financial advisory and asset management firm. The company provides a range of services including mergers and acquisitions, restructurings, capital structure advisory, and asset management. With a presence in major financial centers worldwide, Lazard serves corporations, governments, institutions, and individuals, leveraging its deep industry knowledge and expertise to deliver strategic and innovative solutions.
How the Company Makes MoneyLazard makes money primarily through its two main business segments: Financial Advisory and Asset Management. The Financial Advisory segment generates revenue by providing advisory services on mergers and acquisitions, restructurings, and other financial transactions, usually earning fees based on the success of these deals. The Asset Management segment earns money through management and performance fees assessed on the assets it manages for clients, which include institutions and individuals. Additionally, Lazard's revenue is influenced by market conditions, as well as its ability to maintain strong client relationships and partnerships that facilitate ongoing business opportunities.
Lazard Financial Statement Overview
Summary
Lazard demonstrates solid profitability and cash flow management, with strong operational margins and effective cash flow conversion. However, there are concerns around inconsistent revenue growth and a relatively low equity ratio.Income Statement
Lazard's income statement reveals a solid gross profit margin of 47.9% for TTM, driven by strong revenue figures. The net profit margin improved to 10.1% TTM, reflecting better cost control and profitability compared to prior periods. However, revenue growth has been inconsistent, with a notable drop in 2024. EBIT and EBITDA margins for TTM are healthy at 13.6% and 16%, respectively, indicating operational efficiency.78
Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.84 TTM, suggesting manageable leverage. However, the equity ratio of 14.2% TTM indicates a relatively low equity base, which could be a risk factor. The return on equity has improved to 50.5% TTM, showcasing enhanced profitability for shareholders.65
Positive
Cash Flow
Cash flow analysis is strong, with a robust free cash flow to net income ratio of 2.2 TTM, highlighting efficient cash generation. The operating cash flow to net income ratio of 2.2 TTM further emphasizes strong cash flow management. However, free cash flow growth has been uneven, although it remains positive.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.00B | 3.09B | 2.55B | 2.86B | 3.27B | 2.65B | Gross Profit |
| 1.44B | 975.91M | 605.13M | 1.12B | 1.30B | 1.02B | EBIT |
| 409.24M | 386.47M | -79.96M | 516.85M | 723.85M | 502.14M | EBITDA |
| 480.96M | 511.27M | 40.90M | 640.77M | 842.99M | 619.66M | Net Income Common Stockholders |
| 304.53M | 279.91M | -75.48M | 357.52M | 528.06M | 402.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.17B | 1.58B | 971.32M | 2.01B | 2.81B | 2.52B | Total Assets |
| 4.23B | 4.79B | 4.64B | 5.85B | 7.15B | 5.97B | Total Debt |
| 2.19B | 2.19B | 2.18B | 2.20B | 2.24B | 2.29B | Net Debt |
| 1.28B | 884.32M | 1.20B | 966.63M | 772.73M | 899.83M | Total Liabilities |
| 3.50B | 4.03B | 4.07B | 4.59B | 5.49B | 4.97B | Stockholders Equity |
| 603.03M | 636.24M | 423.76M | 556.46M | 975.22M | 911.77M |
| Cash Flow | Free Cash Flow | ||||
| 655.42M | 697.33M | 136.37M | 784.47M | 826.38M | 511.64M | Operating Cash Flow |
| 677.50M | 742.83M | 164.66M | 833.98M | 866.08M | 575.93M | Investing Cash Flow |
| 118.04M | 134.07M | -38.32M | -56.44M | -39.06M | -62.94M | Financing Cash Flow |
| -729.78M | -439.67M | -1.57B | -1.38B | 195.84M | -547.35M |
Lazard Technical Analysis
Positive
46.03
Price Trends
41.17
Positive
45.79
Positive
47.83
Negative
Market Momentum
1.83
Negative
65.51
Neutral
83.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAZ, the sentiment is Positive. The current price of 46.03 is above the 20-day moving average (MA) of 41.53, above the 50-day MA of 41.17, and below the 200-day MA of 47.83, indicating a neutral trend. The MACD of 1.83 indicates Negative momentum. The RSI at 65.51 is Neutral, neither overbought nor oversold. The STOCH value of 83.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAZ.
Lazard Risk Analysis
Lazard disclosed 38 risk factors in its most recent earnings report. Lazard reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lazard Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.27B | 26.48 | 96.33% | 0.66% | 16.04% | 60.32% | |
74 Outperform | $4.78B | 21.58 | 20.67% | ― | 36.30% | 27.77% | |
72 Outperform | $4.36B | 16.17 | 59.68% | 4.31% | 9.54% | ― | |
71 Outperform | $4.33B | 15.02 | 16.69% | ― | 67.71% | 19.42% | |
71 Outperform | $4.74B | 23.35 | 17.59% | 0.95% | 12.29% | 99.57% | |
68 Neutral | $4.91B | 28.15 | 39.98% | 3.98% | 45.14% | ― | |
64 Neutral | $12.82B | 9.87 | 7.67% | 17000.34% | 12.39% | -5.85% |
* Financial Sector Average
Performance Comparison
LAZ
Lazard
46.03
6.72
17.09%
SNEX
StoneX Group
88.60
39.51
80.48%
PIPR
Piper Sandler
266.96
56.57
26.89%
MC
Moelis
60.88
6.16
11.26%
PJT
PJT Partners
150.91
48.36
47.16%
FUTU
Futu Holdings
109.60
32.74
42.60%
Lazard Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q1-2025)
| % Change Since: 16.86%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were notable expansions and strategic advancements, such as increased market share and new product launches, these were counterbalanced by declines in financial advisory and asset management revenues and high expenses. The uncertainty surrounding trade policies and tariffs further complicates the outlook.Q1-2025 Updates
Positive Updates
Increased Global Market Share in Financial Advisory
Lazard Ltd's global market share of announced transactions increased year over year, reflecting strong client engagement and successful long-term strategy implementation.
Substantial Improvement in Asset Management Flows
Asset management saw substantial improvement in inflows, driven by large wins in strategic focus areas including quantitative platforms and international equities.
Expansion into New Markets
Lazard Ltd expanded its financial advisory presence in the Middle East by opening an office in Abu Dhabi, complementing its existing offices in Saudi Arabia and Dubai.
Launch of New ETF Products
Lazard Ltd launched its first active ETF products in the US, expanding its capabilities to meet investor preferences and demand.
Resilient Diversified Business Model
The company highlighted its diversified business model, allowing it to adapt to client needs rapidly in uncertain times.
Negative Updates
Decline in Financial Advisory Revenue
Financial advisory adjusted net revenue was $370 million, a 17% decrease from the prior year's record first quarter revenue.
Decrease in Asset Management Revenue
Adjusted net revenue for asset management was $264 million, down 4% compared to the prior year, with management fees slightly declining.
High Compensation and Non-Compensation Expenses
Adjusted compensation expense was $421 million, resulting in a compensation ratio of 65.5%, and adjusted non-compensation expense was $148 million.
Uncertainty Due to Tariffs and Economic Conditions
The earnings call highlighted significant uncertainty due to trade policies and tariffs, affecting M&A activity and overall market conditions.
Company Guidance
During Lazard Ltd's First Quarter 2025 Earnings Conference Call, the company provided guidance reflecting a stable yet cautious outlook. The adjusted net revenue for the quarter was $643 million, with financial advisory contributing $370 million, despite being 17% lower than the previous year's record first quarter. Asset management reported adjusted net revenue of $264 million, down 4% from the prior year, with assets under management (AUM) reaching $227 billion as of March 31st. The compensation ratio was 65.5%, slightly below the previous year's 66%, while the adjusted effective tax rate was negative 13.9% due to a discrete benefit. The company returned $175 million to shareholders and declared a quarterly dividend of $0.50 per share. Looking ahead, Lazard expressed optimism amid uncertainty, highlighting strong client engagement and a growing backlog in financial advisory, driven by M&A activity and restructuring, particularly in Europe. Despite challenges, the firm remains focused on executing its Lazard Ltd 2030 long-term strategy, expanding its presence in regions like the Middle East, and introducing new products such as active ETFs in the US.Lazard Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Lazard Shareholders Vote on Key Governance Proposals
Neutral
May 13, 2025
On May 8, 2025, Lazard held its Annual Meeting of shareholders where three proposals were considered. The election of directors saw Peter Harrison and Dan Schulman receiving significant votes, while the non-binding advisory vote on executive compensation and the ratification of Deloitte & Touche LLP as the independent accounting firm were also addressed. The outcomes of these votes reflect the shareholders’ stance on the company’s governance and financial oversight, potentially influencing Lazard’s operational strategies and stakeholder relations.
The most recent analyst rating on (LAZ) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Lazard stock, see the LAZ Stock Forecast page.
Spark’s Take on LAZ Stock
According to Spark, TipRanks’ AI Analyst, LAZ is a Outperform.
Lazard’s overall score reflects solid financial performance and positive corporate developments, though revenue inconsistency and leverage pose risks. Technical indicators suggest mixed momentum, and while the P/E ratio and dividend yield are favorable, earnings call insights indicate potential challenges ahead. Strategic expansions and leadership changes are positive, but broader economic uncertainties remain a concern.
To see Spark’s full report on LAZ stock, click here.
Executive/Board Changes
Lazard Appoints Peter Harrison to Board of Directors
Positive
Mar 3, 2025
On March 3, 2025, Lazard announced the appointment of Peter Harrison to its Board of Directors, highlighting his extensive experience in investment management. Harrison, who previously served as Group CEO of Schroders plc, is expected to enhance Lazard’s asset management strategy and contribute to its long-term growth, leveraging his global network and leadership skills.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.