📊 LAZ Key Takeaways
Is Lazard, Inc. (LAZ) a Good Investment?
Lazard exhibits concerning financial stress despite adequate profit margins, driven by massive negative operating cash flow (-$219.3M) and unsustainable leverage metrics. The combination of 1.92x debt/equity, 1.0x interest coverage, and declining earnings (-8% net income YoY) suggests the company is burning cash and has limited capacity to absorb economic headwinds.
Lazard’s asset‑light model generates solid free cash flow and strong ROE, supported by a sizable cash balance and modest net debt. However, modest revenue growth alongside declining EPS and net income indicates margin pressure, while leverage and only moderate interest coverage temper resilience. Await clearer margin recovery or sustained growth before upgrading.
Lazard, Inc. Key Strengths (LAZ)
- Healthy net profit margin of 12.9% and operating margin of 11.5%
- Strong cash position of $1.0B provides near-term liquidity buffer
- Modest revenue growth of 2.8% YoY in cyclical investment advisory sector
- Strong free cash flow (15.3% margin)
- High ROE (27.1%) with asset‑light capex
- Healthy cash vs. debt, modest net leverage
LAZ Stock Risks: Lazard, Inc. Investment Risks
- Negative operating cash flow of -$219.3M with negative FCF margin of -28.4% is unsustainable
- Critical interest coverage ratio of 1.0x leaves zero margin for error on debt servicing
- High leverage at 1.92x debt/equity coupled with declining profitability (EPS down 19% YoY) creates refinancing risk
- Earnings deterioration despite revenue growth signals operational efficiency problems
- Cyclical advisory/asset‑management revenues
- Margin pressure evidenced by EPS and NI declines
- Leverage and 3.7x interest coverage sensitive to rates
Key Metrics to Watch
- Operating cash flow trend and working capital dynamics
- Interest coverage ratio and debt refinancing needs
- Compensation expense as percentage of revenue
- Operating margin
- Interest coverage
Lazard, Inc. (LAZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LAZ Profit Margin, ROE & Profitability Analysis
LAZ vs Market Sector: How Lazard, Inc. Compares
How Lazard, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lazard, Inc. Stock Overvalued? LAZ Valuation Analysis 2026
Based on fundamental analysis, Lazard, Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lazard, Inc. Balance Sheet: LAZ Debt, Cash & Liquidity
LAZ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lazard, Inc.'s revenue has remained relatively flat over the 5-year period, with a 3% decline. The most recent EPS of $-0.90 indicates the company is currently unprofitable.
LAZ Revenue Growth, EPS Growth & YoY Performance
LAZ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $669.2M | $60.4M | $0.56 |
| Q3 2025 | $770.8M | $71.2M | $0.65 |
| Q2 2025 | $708.0M | $49.9M | $0.49 |
| Q1 2025 | $669.2M | $35.8M | $0.35 |
| Q3 2024 | $543.2M | $7.1M | $0.06 |
| Q2 2024 | $662.3M | $49.9M | $0.49 |
| Q1 2024 | $561.9M | -$22.2M | $-0.27 |
| Q3 2023 | $543.2M | $7.1M | $0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lazard, Inc. Dividends, Buybacks & Capital Allocation
LAZ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lazard, Inc. (CIK: 0001311370)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LAZ
What is the AI rating for LAZ?
Lazard, Inc. (LAZ) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LAZ's key strengths?
Claude: Healthy net profit margin of 12.9% and operating margin of 11.5%. Strong cash position of $1.0B provides near-term liquidity buffer. ChatGPT: Strong free cash flow (15.3% margin). High ROE (27.1%) with asset‑light capex.
What are the risks of investing in LAZ?
Claude: Negative operating cash flow of -$219.3M with negative FCF margin of -28.4% is unsustainable. Critical interest coverage ratio of 1.0x leaves zero margin for error on debt servicing. ChatGPT: Cyclical advisory/asset‑management revenues. Margin pressure evidenced by EPS and NI declines.
What is LAZ's revenue and growth?
Lazard, Inc. reported revenue of $779.4M.
Does LAZ pay dividends?
Lazard, Inc. pays dividends, with $47.0M distributed to shareholders in the trailing twelve months.
Where can I find LAZ SEC filings?
Official SEC filings for Lazard, Inc. (CIK: 0001311370) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LAZ's EPS?
Lazard, Inc. has a diluted EPS of $0.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LAZ's fundamental grade?
Based on our AI fundamental analysis in May 2026, Lazard, Inc. has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LAZ stock overvalued or undervalued?
Valuation metrics for LAZ: ROE of 11.5% (sector avg: 15%), net margin of 12.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is LAZ's AI grade for 2026?
Our dual AI analysis gives Lazard, Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is LAZ's free cash flow?
Lazard, Inc.'s operating cash flow is $-219.3M, with capital expenditures of $2.2M. FCF margin is -28.4%.
How does LAZ compare to other Market stocks?
Vs Default sector averages: Net margin 12.9% (avg: 12%), ROE 11.5% (avg: 15%), current ratio N/A (avg: 1.8).
Is Lazard, Inc. carrying too much debt?
LAZ has a debt-to-equity ratio of 1.92x, which is above the Market sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.