Lazard (LAZ)
NYSE:LAZ
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Lazard
(NYSE:LAZ)
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Rating:60Neutral
Price Target:
$43.00
▼(-10.86% Downside)
Action:ReiteratedDate: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
Strong Financial Advisory Franchise
Record Financial Advisory revenue demonstrates Lazard's leading advisory position and ability to win large, fee‑generating mandates. Advisory fees scale with transaction size and closings, providing high‑margin, client‑sticky revenue that supports durable earnings through cycles.
Negative Factors
Elevated Leverage
Leverage remains meaningfully elevated for a capital‑markets firm, increasing sensitivity to earnings volatility and limiting financial flexibility. A small equity base boosts ROE in good years but amplifies downside risk, constraining capital allocation during weaker deal or market environments.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Financial Advisory Franchise
Record Financial Advisory revenue demonstrates Lazard's leading advisory position and ability to win large, fee‑generating mandates. Advisory fees scale with transaction size and closings, providing high‑margin, client‑sticky revenue that supports durable earnings through cycles.
Read all positive factors
Lazard (LAZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.38B
Dividend Yield4.06%
Average Volume (3M)1.55M
Price to Earnings (P/E)20.0
Beta (1Y)1.68
Revenue Growth1.58%
EPS Growth1.93%
CountryUS
Employees3,253
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.80
Shares Outstanding93,907,880
10 Day Avg. Volume1,190,853
30 Day Avg. Volume1,550,632
Financial Highlights & Ratios
PEG Ratio-1.17
Price to Book (P/B)5.42
Price to Sales (P/S)1.49
P/FCF Ratio9.37
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue1.84
Enterprise Value/Gross Profit5.91
Enterprise Value/Ebitda12.95
Forecast
1Y Price Target
$53.57Price Target Upside11.05% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)3.3
Revenue Forecast (FY)$3.42B
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. ...
How the Company Makes Money
Lazard primarily makes money through two main segments: Financial Advisory and Asset Management. (1) Financial Advisory: The company earns advisory fees for advising clients on transactions and strategic situations. The largest component is typica...
Lazard Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights the revenue generated from different business segments, providing insight into which areas are driving growth and how diversified the company's income streams are.
Highlights the revenue generated from different business segments, providing insight into which areas are driving growth and how diversified the company's income streams are.
Data provided by:
The Fly
The FlyLazard Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful progress on Lazard's strategic objectives with record Financial Advisory revenue, an Asset Management inflection (AUM and revenue growth, record gross inflows, and ETF launches), improved MD productivity, and a solid pipeline of won-but-not-yet-funded mandates supporting management's expectation of positive net flows in 2026. Near-term challenges include substantial Q4 Asset Management outflows driven by the closure of a large sub-advised relationship, FX and market sensitivity, accelerated hiring that temporarily pressures productivity, and higher compensation and investment spending. Management emphasized disciplined expense control, AI adoption, and leadership appointments to drive execution. Overall, positive operational and strategic momentum appears to outweigh the identifiable near-term headwinds.Positive Updates
Firm-wide Revenue Growth
Reported firm-wide revenue of $3.0 billion for fiscal 2025, up 5% year-over-year; fourth quarter revenue of $892 million, up 10% year-over-year.
Negative Updates
Large Q4 Asset Management Outflows
Reported net outflows of $19.7 billion during the quarter, largely driven by the closure of one U.S. sub-advised relationship; AUM as of December 31 was reported as down 4% versus September 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Firm-wide Revenue Growth
Reported firm-wide revenue of $3.0 billion for fiscal 2025, up 5% year-over-year; fourth quarter revenue of $892 million, up 10% year-over-year.
Read all positive updates
Company Guidance
Lazard guided to accelerating Financial Advisory activity and positive net flows in Asset Management for 2026, supported by 2025 results: firm-wide revenue of $3.0 billion (+5% YoY; Q4 $892 million, +10% YoY), Financial Advisory record revenue of $1.8 billion (Q4 $542 million, +7% YoY) and Asset Management revenue of $1.2 billion (Q4 $339 million, +18% YoY; Q4 management fees $301 million; FY management fees $1.1 billion; FY incentive fees $59 million). Key balance-sheet and flow metrics included average Q4 AUM of $261 billion (+12% YoY), year‑end won‑but‑not‑funded mandates of $13 billion, record gross inflows that exceeded the $50 billion target, seven U.S. active ETFs launched with >$800 million AUM, Q4 market appreciation of $10 billion, a Q4 FX drag of $0.8 billion, and Q4 net outflows of $19.7 billion (FY net inflows of $8.4 billion excluding the closed sub‑advised relationship). Productivity and cost guidance: average revenue per Managing Director was $8.9 million in 2025 (up $2.5M since 2023) with a 2030 target of $12.5M/MD, a hiring goal of 10–15 net FA MDs per year (2024: 11 net adds; 2025: >2x 2024), FY compensation expense $2.0 billion (Q4 $585M) with a FY comp ratio of 65.5% (65.9% prior), FY non‑comp expense $613 million (~20% ratio), adjusted effective tax rate 22.7% FY (Q4 29.5%), $393 million returned to shareholders in 2025 (including a $0.50/share quarterly dividend), and an expectation of mid‑to‑high single‑digit dollar increases in non‑comp expense in 2026 alongside planned operating leverage.Lazard Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
48
Neutral
Cash Flow
66
Positive
| 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 | -78.28M | 134.07M | -38.32M | -56.44M | -39.06M |
| Financing Cash Flow | -467.34M | -439.67M | -1.57B | -1.38B | 195.84M |
Lazard Technical Analysis
Positive
48.24
Price Trends
46.87
Positive
48.62
Negative
49.96
Negative
Market Momentum
0.06
Negative
64.82
Neutral
95.98
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 48.24 is above the 20-day moving average (MA) of 41.75, above the 50-day MA of 46.87, and below the 200-day MA of 49.96, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 64.82 is Neutral, neither overbought nor oversold. The STOCH value of 95.98 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 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.11B | 27.05 | 18.76% | 1.66% | 3.96% | -20.33% | |
74 Outperform | $7.31B | 5.77 | 16.43% | ― | 32.53% | 13.38% | |
74 Outperform | $5.95B | 20.12 | 22.08% | 1.63% | 12.77% | 36.43% | |
73 Outperform | $7.52B | 6.06 | 32.56% | 2.88% | 27.66% | 131.25% | |
71 Outperform | $5.03B | 22.13 | 44.30% | 3.69% | 51.19% | 456.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $4.38B | 19.99 | 30.96% | 4.06% | 1.58% | 1.93% |
* Financial Sector Average
LAZ
Lazard
48.24
13.89
40.43%
SNEX
StoneX Group
99.37
46.60
88.32%
MKTX
Marketaxess Holdings
174.56
-45.80
-20.78%
PIPR
Piper Sandler
85.54
30.85
56.40%
MC
Moelis
64.60
14.38
28.64%
VIRT
Virtu Financial
50.89
13.16
34.88%
Lazard Corporate Events
Business Operations and StrategyExecutive/Board Changes
Lazard Appoints Tracy Farr as New Chief Financial Officer
Positive
Feb 2, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.