Lazard (LAZ) AI Stock Analysis

• Market Cap: $4.78B
• Dividend Yield: 3.96%
• Average Volume (3M): 889.93K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.49
• Revenue Growth: 1.58%
• EPS Growth: 1.93%
• Country: US
• Employees: 3,253
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.56
• Shares Outstanding: 94,877,815
• 10 Day Avg. Volume: 1,219,629
• 30 Day Avg. Volume: 889,933
• PEG Ratio: -0.04
• Price to Book (P/B): 7.54
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 6.88
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 2.22
• Enterprise Value/Gross Profit: 6.48
• Enterprise Value/Ebitda: 17.68
• 1Y Price Target: $55.40
• Price Target Upside: 9.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.54
• Revenue Forecast (FY): $3.05B

• Rating: 66 Neutral
• Price Target: $55.00 ▲(8.85% Upside)

Lazard's overall score is driven by strong earnings call performance and technical indicators suggesting short-term bullish momentum. However, financial performance is hindered by high leverage and declining revenue growth, and valuation metrics indicate potential overvaluation. The positive earnings call sentiment and strategic expansions are key strengths, while financial stability remains a concern.

Positive Factors

Record Financial Advisory Revenue

The record revenue in financial advisory indicates strong demand for Lazard's services, enhancing its market position and long-term growth potential.

Significant Increase in AUM

The significant increase in AUM reflects effective asset management strategies, boosting revenue potential and client trust over the long term.

Strategic Expansions

The addition of new managing directors strengthens Lazard's advisory capabilities, supporting strategic growth and competitive advantage.

Negative Factors

High Debt-to-Equity Ratio

A high debt-to-equity ratio indicates financial risk, potentially limiting Lazard's flexibility in pursuing growth opportunities.

Declining Revenue Growth

Declining revenue growth suggests challenges in maintaining market share and could impact future profitability and expansion efforts.

Decline in Free Cash Flow Growth

A decline in free cash flow growth may constrain Lazard's ability to invest in new opportunities and sustain long-term growth.

Lazard Business Overview & Revenue Model

Company Description

Lazard Ltd, together with its subsidiaries, operates as a financial advisory and asset management firm in North America, Europe, Asia, Australia, and Central and South America. It operates in two segments, Financial Advisory and Asset Management. The Financial Advisory segment offers various financial advisory services regarding mergers and acquisitions, restructurings, capital advisory, shareholder advisory, capital raising, sovereign advisory, and other strategic advisory matters. This segment serves corporate, partnership, institutional, government, sovereign, and individual clients across various industry areas, including consumers, financial institutions, healthcare and life sciences, industrials, power and energy/infrastructure, and real estate, as well as technology, telecommunication, and media and entertainment. The Asset Management segment offers a range of investment solutions, and investment and wealth management services in equity and fixed income strategies; asset allocation strategies; and alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries, and private clients. The company was founded in 1848 and is based in Hamilton, Bermuda.

How the Company Makes Money

Lazard generates revenue primarily through its Financial Advisory and Asset Management services. In the Financial Advisory segment, the company earns fees from advisory services related to mergers and acquisitions, restructurings, and capital raising activities, which are typically contingent on successful transactions. The Asset Management division generates management fees based on the asset base of its clients, as well as performance fees tied to investment returns. Key revenue streams include advisory fees from high-profile transactions, management fees from institutional and retail clients, and performance fees from outperforming investment funds. Additionally, Lazard benefits from strategic partnerships and alliances that enhance its advisory capabilities and expand its client base, further contributing to its earnings.

Lazard Financial Statement Overview

Summary

Lazard shows operational efficiency with stable profit margins but faces challenges with declining revenue growth and high leverage. The income statement reflects a decline in revenue growth, while the balance sheet shows a high debt-to-equity ratio. Cash flow analysis indicates moderate cash generation relative to net income.

Income Statement

Lazard's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 32.4%, reflecting potential challenges in market conditions. However, the company maintains a reasonable gross profit margin of 34.2% and a net profit margin of 8.9%, suggesting operational efficiency. The EBIT and EBITDA margins have decreased compared to previous years, indicating pressure on profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.61, which is a concern for financial stability. The return on equity stands at 38.7%, showing effective use of equity to generate profits. However, the equity ratio is relatively low, indicating a higher reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 15.2% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is 0.56, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 0.97, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.07B	3.09B	2.55B	2.83B	3.27B	2.64B
Gross Profit	1.05B	1.08B	605.13M	1.17B	1.37B	1.09B
EBITDA	385.05M	511.27M	40.90M	640.77M	842.99M	619.66M
Net Income	273.28M	279.91M	-75.48M	357.52M	528.06M	402.46M
Balance Sheet
Total Assets	4.63B	4.79B	4.64B	5.85B	7.15B	5.97B
Cash, Cash Equivalents and Short-Term Investments	1.39B	1.58B	1.19B	2.01B	2.81B	2.52B
Total Debt	2.20B	2.19B	2.18B	2.20B	2.24B	2.29B
Total Liabilities	3.68B	4.03B	4.07B	4.59B	5.49B	4.97B
Stockholders Equity	841.52M	636.24M	423.76M	556.46M	975.22M	911.77M
Cash Flow
Free Cash Flow	467.61M	697.33M	136.37M	784.47M	826.38M	511.64M
Operating Cash Flow	482.48M	742.83M	164.66M	833.98M	866.08M	575.93M
Investing Cash Flow	-29.69M	134.07M	-38.32M	-56.44M	-39.06M	-62.94M
Financing Cash Flow	-562.83M	-439.67M	-1.57B	-1.38B	195.84M	-547.35M

Lazard Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 50.53 is below the 20-day moving average (MA) of 50.71, above the 50-day MA of 49.67, and above the 200-day MA of 47.59, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 32.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAZ.

Lazard Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	78 Outperform	$5.59B	23.22	51.98%	3.71%	51.19%	456.59%
MKTX	68 Neutral	$6.76B	30.94	15.88%	1.67%	3.96%	-20.33%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PIPR	67 Neutral	$6.01B	25.61	19.30%	1.68%	12.77%	36.43%
LAZ	66 Neutral	$4.78B	20.00	36.41%	3.96%	1.58%	1.93%
VIRT	64 Neutral	$5.15B	7.29	29.43%	2.86%	27.66%	131.25%
SNEX	58 Neutral	$5.00B	15.97	14.47%	―	32.53%	13.38%

Lazard Corporate Events

Lazard Updates Vision and Growth Strategy 2030

On September 10, 2025, Lazard, Inc. announced an update to its vision and long-term growth strategy for Lazard 2030. This strategic update is expected to impact the company’s operations and industry positioning, potentially influencing its stakeholders.