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Lazard (LAZ)
NYSE:LAZ
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Lazard
(NYSE:LAZ)
74Outperform
Positive Factors
Earnings
Lazard delivered a high quality 53% adjusted EPS beat on both revenues and efficiency ratios.
Revenue Growth
The firm delivered 28% Advisory revenue growth, which is estimated to be at the high end of the peer group once all have reported.
Negative Factors
Asset Management
Monthly net outflows re-accelerated to -$4.5BN.
Lazard (LAZ) vs. S&P 500 (SPY)
Market Cap
$4.13B
Dividend Yield4.46%
Average Volume (3M)1.22M
Price to Earnings (P/E)16.7
Beta (1Y)1.26
Revenue Growth23.88%
EPS GrowthN/A
CountryUS
Employees3,291
SectorFinancial
Sector Strength77
IndustryCapital Markets
Share Statistics
EPS (TTM)2.66
Shares Outstanding89,899,220
10 Day Avg. Volume1,520,194
30 Day Avg. Volume1,223,199
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)28.44
Price to Cash Flow (P/CF)3.50
P/FCF Ratio3.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$59.00Price Target Upside28.29% Upside
Rating ConsensusHold
Number of Analyst Covering7
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 exhibits a strong financial standing with substantial revenue growth, improved profitability, and a robust balance sheet with no debt. Despite lower operating margins compared to historical levels, cash flow is strong, indicating efficient cash generation and management.Income Statement
Lazard's income statement shows strong recovery with a significant increase in revenue and a return to profitability after previous losses. The gross profit margin improved to approximately 33.4%, indicating better operational efficiency. The net profit margin increased to about 8.9%, highlighting effective cost management. However, the EBIT and EBITDA margins are relatively lower compared to historical levels, suggesting room for improvement in operating performance.78
Positive
Balance Sheet
The balance sheet indicates a robust financial position with zero total debt, enhancing financial stability. The equity ratio stands at a high 99.7%, reflecting a strong reliance on equity financing. Return on equity is impressive at approximately 44.0%, demonstrating efficient use of equity capital. However, the significant decrease in total assets could limit growth opportunities.85
Very Positive
Cash Flow
Cash flow analysis shows a notable improvement in free cash flow, driven by strong operating cash flow. The free cash flow to net income ratio is high, indicating good cash generation relative to net income. The operating cash flow to net income ratio is also strong, reinforcing the company's ability to convert earnings into cash effectively. Despite this, the volatility in financing cash flow suggests potential risks in managing financial leverage.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.09B | 2.55B | 2.86B | 3.27B | 2.65B | Gross Profit |
| 975.91M | 605.13M | 1.12B | 1.30B | 1.02B | EBIT |
| 386.47M | -79.96M | 516.85M | 723.85M | 502.14M | EBITDA |
| 510.82M | 40.90M | 640.77M | 842.99M | 619.66M | Net Income Common Stockholders |
| 279.91M | -75.48M | 357.52M | 528.06M | 402.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.05M | 971.32M | 2.01B | 2.81B | 2.52B | Total Assets |
| 4.79B | 4.64B | 5.85B | 7.15B | 5.97B | Total Debt |
| 2.19B | 2.18B | 2.20B | 2.24B | 2.29B | Net Debt |
| 884.32M | 1.20B | 966.63M | 772.73M | 899.83M | Total Liabilities |
| 4.03B | 4.07B | 4.59B | 5.49B | 4.97B | Stockholders Equity |
| 636.24M | 423.76M | 556.46M | 975.22M | 911.77M |
| Cash Flow | Free Cash Flow | |||
| 742.83M | 136.37M | 784.47M | 826.38M | 511.64M | Operating Cash Flow |
| 742.83M | 164.66M | 833.98M | 866.08M | 575.93M | Investing Cash Flow |
| 134.07M | -38.32M | -56.44M | -39.06M | -62.94M | Financing Cash Flow |
| -439.67M | -1.57B | -1.38B | 195.84M | -547.35M |
Lazard Technical Analysis
Negative
45.99
Price Trends
50.79
Negative
52.30
Negative
47.96
Negative
Market Momentum
-1.51
Positive
39.32
Neutral
39.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAZ, the sentiment is Negative. The current price of 45.99 is below the 20-day moving average (MA) of 50.14, below the 50-day MA of 50.79, and below the 200-day MA of 47.96, indicating a bearish trend. The MACD of -1.51 indicates Positive momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of 39.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LAZ.
Lazard Risk Analysis
Lazard disclosed 37 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $28.20B | 14.00 | 19.07% | 1.34% | 13.79% | 28.57% | |
77 Outperform | $180.70B | 14.06 | 13.16% | 3.25% | 9.17% | 53.77% | |
74 Outperform | $4.13B | 16.74 | 51.51% | 4.46% | 23.88% | ― | |
74 Outperform | $4.59B | 33.37 | 34.27% | 4.13% | 39.75% | ― | |
74 Outperform | $5.52B | 29.71 | 62.26% | 0.68% | 29.48% | 63.03% | |
73 Outperform | $7.71B | 20.95 | 23.03% | 1.68% | 22.67% | 47.20% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% |
* Financial Sector Average
Performance Comparison
LAZ
Lazard
45.99
8.14
21.51%
EVR
Evercore Partners
196.97
4.84
2.52%
MS
Morgan Stanley
112.04
25.56
29.56%
RJF
Raymond James Financial
139.70
21.38
18.07%
MC
Moelis
59.79
7.51
14.36%
PJT
PJT Partners
142.35
45.45
46.90%
Lazard Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -11.93% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Positive
Lazard reported strong growth in revenue and financial advisory performance with record revenue growth in Europe and increased mandates. However, challenges included a decrease in assets under management and significant outflows. Despite these challenges, the overall sentiment remains positive due to the firm's strategic growth and improved financial performance.Highlights
Record Revenue Growth
Firm-wide adjusted net revenue was $812 million for the fourth quarter, up 7% from the prior year, and $2.9 billion for the year, up 18% from 2023.
Financial Advisory Performance
Financial Advisory adjusted net revenue was $508 million for the fourth quarter, up 6% year-over-year, and $1.7 billion for the full year, up 28% from 2023.
Strong Asset Management Results
Asset Management adjusted net revenue was $287 million for the fourth quarter, up 5% compared to one year ago and $1.1 billion for the full year, up 3% compared to 2023.
Increased Mandates
Entered 2025 with $10 billion of not yet funded mandates, substantially higher than recent years.
Compensation Ratio Improvement
Full year compensation ratio improved by 390 basis points from 2023, with a target of achieving a 60% ratio in 2025.
Lowlights
Decline in Assets Under Management
AUM was $226 billion as of December 31st, 2024, 8% lower than December 2023 and 9% lower than September 2024.
Market Depreciation and Outflows
During the quarter, there was market depreciation of $2 billion, foreign exchange depreciation of $9 billion, and net outflows of $10 billion.
Higher Effective Tax Rate
Adjusted effective tax rate for the full year 2024 was 24.4%, compared to 16% in the prior year quarter.
Company Guidance
During Lazard's fourth quarter and full year 2024 earnings call, several key metrics and strategic initiatives were highlighted. The firm reported an adjusted net revenue of $812 million for the fourth quarter, a 7% increase from the previous year, and $2.9 billion for the full year, marking an 18% rise from 2023. The Financial Advisory segment achieved $508 million in adjusted net revenue for the fourth quarter, up 6% year-over-year, and $1.7 billion for the full year, a 28% increase. Asset Management recorded $287 million in adjusted net revenue for the fourth quarter, up 5%, and $1.1 billion for the year, a 3% improvement. Lazard's adjusted compensation expense for 2024 was $1.9 billion, with a full-year compensation ratio of 65.9%, and they aim for a 60% target in 2025. The firm also returned $303 million to shareholders in 2024, including $179 million in dividends and $60 million in share repurchases. Looking ahead, Lazard anticipates continued growth in both Financial Advisory and Asset Management, supported by a strong pipeline of $10 billion in unfunded mandates and an evolving strategic vision towards 2030.Lazard Corporate Events
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.