Lazard (LAZ) AI Stock Analysis

• Market Cap: $5.18B
• Dividend Yield: 3.66%
• Average Volume (3M): 948.10K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.39
• Revenue Growth: 10.54%
• EPS Growth: 92.31%
• Country: US
• Employees: 3,253
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): 0.52
• Shares Outstanding: 94,147,390
• 10 Day Avg. Volume: 1,035,820
• 30 Day Avg. Volume: 948,102
• PEG Ratio: 2.21
• Price to Book (P/B): 8.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.96
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 5.83
• Enterprise Value/Ebitda: 5.38
• 1Y Price Target: $53.50
• Price Target Upside: -2.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 78 Outperform
• Price Target: $62.00 ▲(13.53%Upside)

Lazard's overall stock score reflects strong technical trends and robust earnings performance. Financial performance is solid, with efficient cash flow management and profitability, although revenue inconsistency and a low equity base pose some risks. The stock's fair valuation and attractive dividend yield add to its appeal, while positive earnings call sentiments highlight growth potential despite some operational challenges.

Positive Factors

Assets Under Management

Lazard Ltd announced a preliminary increase in assets under management by 5.6% to $248.4 billion.

Cash Flows

Monthly cash flows turned positive with an inflow of $4.6 billion, compared to outflows the previous month.

Negative Factors

Net Outflows

Monthly net outflows accelerated to -$3.7BN, with QTD net outflows more than double Consensus full-qtr net outflows.

Sub-Advised Relationship

Outflows included -$4.3BN from a single sub-advised relationship.

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 makes money primarily through its two business segments: Financial Advisory and Asset Management. In Financial Advisory, the company generates revenue by providing advisory services for M&A transactions, restructurings, and other financial matters, typically charging fees based on the size and complexity of the transactions. In Asset Management, Lazard earns money through management fees based on a percentage of the assets under management (AUM) and, in some cases, performance fees if certain investment benchmarks are met. The firm benefits from long-term client relationships and a strong reputation, which contribute to its ability to secure high-profile advisory mandates and attract significant assets in its management division. Additionally, Lazard's global presence and expertise across various industries and markets enhance its ability to capture diverse revenue opportunities.

Lazard Financial Statement Overview

Summary

Lazard's financial performance is strong, with solid profitability and cash flow management. The income statement shows a healthy gross profit margin and improved net profit margin, although revenue growth has been inconsistent. The balance sheet reveals manageable leverage but a low equity base. Cash flow analysis is robust, highlighting efficient cash generation, despite uneven free cash flow growth.

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.09B	2.55B	2.83B	3.27B	2.65B
Gross Profit	1.08B	605.13M	1.12B	1.37B	1.02B
EBITDA	511.27M	40.90M	640.77M	842.99M	619.66M
Net Income	279.91M	-75.48M	357.52M	528.06M	402.46M
Balance Sheet
Total Assets	4.79B	4.64B	5.85B	7.15B	5.97B
Cash, Cash Equivalents and Short-Term Investments	1.58B	971.32M	2.01B	2.81B	2.52B
Total Debt	2.19B	2.18B	2.20B	2.24B	2.29B
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	697.33M	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

• Technical Analysis Sentiment: Positive
• Last Price: 54.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 54.61 is above the 20-day moving average (MA) of 51.48, above the 50-day MA of 47.21, and above the 200-day MA of 48.02, indicating a bullish trend. The MACD of 2.32 indicates Negative momentum. The RSI at 68.96 is Neutral, neither overbought nor oversold. The STOCH value of 75.44 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
LAZ	78 Outperform	$5.18B	19.17	50.56%	3.66%	10.54%	92.31%
FUTU	77 Outperform	$7.42B	27.85	23.44%	―	56.04%	58.58%
MC	73 Outperform	$5.73B	32.51	39.98%	3.52%	42.85%	1398.33%
SNEX	72 Outperform	$4.64B	16.07	16.69%	―	67.71%	19.42%
PJT	70 Outperform	$6.50B	32.73	96.33%	0.54%	16.04%	60.32%
PIPR	70 Neutral	$5.67B	27.89	17.59%	1.75%	10.27%	88.77%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%

Lazard Corporate Events

Lazard Shareholders Vote on Key Governance Proposals

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.