Lazard (LAZ) AI Stock Analysis

• Market Cap: $4.75B
• Dividend Yield: 4.06%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.57
• Revenue Growth: 1.58%
• EPS Growth: 1.93%
• Country: US
• Employees: 3,253
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.80
• Shares Outstanding: 93,907,880
• 10 Day Avg. Volume: 1,104,345
• 30 Day Avg. Volume: 1,061,423
• PEG Ratio: -1.17
• Price to Book (P/B): 5.42
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 9.37
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 5.97
• Enterprise Value/Ebitda: 13.07
• 1Y Price Target: $60.75
• Price Target Upside: 20.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 3.65
• Revenue Forecast (FY): $3.55B

• Rating: 60 Neutral
• Price Target: $52.00 ▲(2.77% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

Score is anchored by a cyclical financial rebound and a positive earnings-call outlook (record advisory performance and constructive 2026 guidance), but is held back by high leverage and clearly bearish technical conditions (trading below major moving averages with weak momentum). Valuation is neutral-to-supportive mainly due to the dividend yield, but not enough to offset the balance-sheet and trend risks.

Positive Factors

Record Financial Advisory Performance

Record advisory revenue demonstrates a durable competitive position in M&A, restructuring and capital markets advice. Strong advisory fees are less transactional-risky over cycles than one-off items, underpinning predictable fee pools, stronger client relationships and a pipeline that supports multi-quarter fee realization.

Asset Management AUM and Inflows

Rising AUM and record gross inflows signal an inflection in asset management, strengthening recurring management fees. Product expansion (ETF launches) and distribution momentum diversify fee sources and reduce reliance on advisory cycles, supporting steadier revenue and cross‑sell opportunities over multiple quarters.

Improving Cash Generation & Productivity

Material cash generation improvement provides durable funding for dividends, buybacks and strategic hires while enabling debt paydown. Higher revenue per Managing Director and rising cash flow support reinvestment in growth initiatives and provide a buffer against cyclical downturns in deal activity.

Negative Factors

Elevated Leverage

Significantly elevated leverage for a capital-markets advisory constrains financial flexibility and increases sensitivity to earnings volatility. High debt amplifies downside when deal activity or AUM falls, limiting ability to invest or return capital without materially raising risk in stressed market conditions.

Margin Compression & Profit Volatility

Sustained margin compression vs prior cycles highlights structural pressure on profitability from higher compensation and investment spending. Lower margins increase earnings cyclicality, reduce buffer to cover fixed costs and make returns more sensitive to top-line swings over the medium term.

AUM Volatility and Concentration Risk

Large client relationship closures and quarter-to-quarter AUM swings show concentration and flow risks in Asset Management. Material outflows can quickly reduce fee income, strain distribution efforts, and magnify the impact of market/FX moves on recurring revenues and reported AUM levels.

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

Income statement is improving with a return to profitability and re-accelerating revenue growth, and cash generation is solid. The main drag is balance-sheet risk: leverage remains high (debt-to-equity ~3.0x), increasing sensitivity to market-driven earnings volatility and contributing to a weaker overall financial profile than earlier-cycle levels.

Income Statement

LAZ shows a clear earnings recovery after a loss in 2023, returning to profitability in 2024 and 2025. Revenue growth re-accelerated in 2025 (4.36% vs. 0.21% in 2024), but profitability is notably below prior-cycle levels: net margin fell to 7.43% in 2025 (from 9.07% in 2024 and 16.16% in 2021), and operating profitability also compressed versus 2020–2022. Overall, improving top-line and positive earnings momentum are strengths, while margin volatility and a lower profitability profile than earlier years are key weaknesses.

Balance Sheet

Leverage is the main constraint. Debt remains high relative to equity, with debt-to-equity at 3.04x in 2025 (still elevated even though improved from 5.13x in 2023). Equity has rebuilt from 2023–2025, helping stabilize the capital structure, but the balance sheet remains meaningfully levered for a capital-markets business. Returns on equity are strong in profitable years (27.11% in 2025), yet this also reflects the small equity base—raising sensitivity to earnings swings.

Cash Flow

Cash generation is solid and improving versus the weak 2023 period. Operating cash flow increased to $519M in 2025 (from $165M in 2023), and free cash flow grew 11.06% in 2025. However, cash flow coverage of net income weakened in 2025 (operating cash flow to net income at 0.64 vs. 0.83 in 2024), indicating less cash conversion year-over-year despite still healthy absolute cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.19B	3.09B	2.55B	2.83B	3.27B
Gross Profit	1.01B	1.08B	605.13M	1.17B	1.37B
EBITDA	449.41M	511.27M	40.90M	640.77M	842.99M
Net Income	236.83M	279.91M	-75.48M	357.52M	528.06M
Balance Sheet
Total Assets	4.94B	4.79B	4.64B	5.85B	7.15B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.58B	1.19B	2.01B	2.81B
Total Debt	2.58B	2.19B	2.18B	2.20B	2.24B
Total Liabilities	3.95B	4.03B	4.07B	4.59B	5.49B
Stockholders Equity	873.65M	636.24M	423.76M	556.46M	975.22M
Cash Flow
Free Cash Flow	505.23M	697.33M	136.37M	784.47M	826.38M
Operating Cash Flow	537.18M	742.83M	164.66M	833.98M	866.08M
Investing Cash Flow	-81.98M	134.07M	-38.32M	-56.44M	-39.06M
Financing Cash Flow	-463.64M	-439.67M	-1.57B	-1.38B	195.84M

Lazard Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.60
• 50DMA: Negative
• 100DMA: Positive
• 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 Negative. The current price of 50.6 is below the 20-day moving average (MA) of 52.87, below the 50-day MA of 51.63, and above the 200-day MA of 49.99, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 47.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LAZ.

Lazard Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKTX	75 Outperform	$6.83B	28.91	19.46%	1.66%	3.96%	-20.33%
VIRT	73 Outperform	$6.40B	8.07	30.87%	2.88%	27.66%	131.25%
MC	71 Outperform	$4.78B	20.18	―	3.69%	51.19%	456.59%
SNEX	70 Outperform	$6.69B	19.01	16.17%	―	32.53%	13.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PIPR	62 Neutral	$5.27B	18.68	21.65%	1.63%	12.77%	36.43%
LAZ	60 Neutral	$4.75B	21.36	30.59%	4.06%	1.58%	1.93%

Lazard Corporate Events

Lazard Appoints Tracy Farr as New Chief Financial Officer

On January 29, 2026, Lazard announced that long-time insider Tracy Farr has been appointed Chief Financial Officer, effective February 1, 2026, succeeding Mary Ann Betsch, who became CFO in 2022 and will move to a senior advisor role through June 30, 2026 to support the transition. Farr, a 20-year finance veteran who joined Lazard in 2013 and most recently served as a managing director in the Capital Structure Advisory group and on corporate development and strategy initiatives, steps into the role with a mandate from CEO Peter Orszag to drive operational efficiency, profitable growth and progress toward the firm’s Lazard 2030 goals while deepening engagement with the investment community. Betsch, credited with strengthening Lazard’s global finance function, advancing reporting and planning, overseeing the firm’s transition to a C‑corporation and broadening shareholder engagement, will receive continued salary, benefits and equity vesting during her advisory period and severance benefits after her separation, while Farr’s compensation package is aligned with other executive officers, underscoring a carefully managed leadership handover that aims to preserve continuity in financial strategy and investor relations.

The most recent analyst rating on (LAZ) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Lazard stock, see the LAZ Stock Forecast page.