Lazard Inc. Common Stock (LAZ)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• High return on equity of 28.6% demonstrating efficient capital deployment
• Attractive 4.2% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($21) with negative 123% margin of safety—limited downside protection
• High leverage at 2.42x debt-to-equity increases financial risk and interest expense burden

AI Analysis

Lazard Inc. Common Stock is a small-cap financial services company valued at $4.5 billion. The business generates $3.1 billion in annual revenue with a 1.6% net margin. From a quality standpoint, Lazard shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 1.8 in the grey zone. On valuation, the stock is reasonably priced at 21.7x earnings, with trades far above its Graham Number ($21) with no margin of safety. Growth dynamics show revenue growing at 11.5% and profit growth of -42.2%. The 4.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 2.4x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer