Lazard Ltd Stock Fair Value Calculation – LAZARD LTD Reports Q4 FY2022 Earnings of USD 42.4M and Net Income of USD 731.9M, Down 79.9% and 27.7% Respectively.
February 20, 2023
Earnings report
On February 2 2023, LAZARD LTD ($NYSE:LAZ) reported their fourth quarter of FY2022 earnings results ending on December 31 2022. The results showed a major decrease in total revenue for the forth quarter, as it fell 79.9% to USD 42.4 million compared to the same quarter of the previous year. Net income for the period experienced a large decrease of 27.7%, down to USD 731.9 million when compared to the same period of the previous year. The reported figures by LAZARD LTD highlight an alarming trend in the company’s performance in the fourth quarter of FY2022.
Such a huge decline in revenue and net income is concerning for the company’s shareholders and raises questions about the sustainability of the company’s current strategy. It will be of interest to watch the performance of the organization over the next few quarters.
Market Price
LAZARD LTD reported its fourth quarter FY2022 earnings on Thursday, reporting total revenues of USD 42.4 million and net income of USD 731.9 million, representing a decrease of 79.9% and 27.7% respectively from the same quarter last year. The company’s stock opened at $41.0 and closed at $40.8, down by 0.8% from last closing price of 41.2. The drastic drop in total revenues was attributed to difficult market conditions caused by the ongoing global pandemic, along with a general slowdown in economic activity that has effected businesses across various industries. In addition, the decreased net income reflects the impact of both decreased revenues and significant cost-cutting initiatives implemented by LAZARD LTD throughout the year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lazard Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 2.86k | 357.52 | 12.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lazard Ltd. More…
| Operations | Investing | Financing |
| 972.52 | -39.06 | 195.84 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lazard Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.85k | 4.59k | 6.35 |
Key Ratios Snapshot
Some of the financial key ratios for Lazard Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.3% | 7.8% | 18.1% |
| FCF Margin | ROE | ROA |
| 32.7% | 57.8% | 5.5% |
Analysis – Lazard Ltd Stock Fair Value Calculation
At GoodWhale, we recently analyzed the fundamentals of LAZARD LTD. Using our proprietary Valuation Line, we calculated the intrinsic value of their stock to be around $47.1. This presents an excellent opportunity to invest in the company, as the expected return would be quite high. With our analysis, we are confident that investors will make a good return on their money. More…
Peers
The company operates in two segments: Financial Advisory and Asset Management. The Financial Advisory segment provides financial advice on mergers and acquisitions, restructurings, capital raising, and other strategic matters. The Asset Management segment offers investment management, research, and investment advisory services to institutional and individual clients. Lazard Ltd competes with Rothschild & Co SCA, Asia-Pac Financial Investment Co Ltd, and Advenis SA in the financial advisory and asset management industries.
– Rothschild & Co SCA ($LTS:0FPB)
Rothschild & Co SCA is a French multinational investment bank and financial services company founded in 1811. The company is headquartered in Paris and has offices in 40 countries across Europe, the Americas, Asia, Africa, and the Middle East. Rothschild & Co SCA provides a wide range of services, including mergers and acquisitions, strategic advisory, capital markets, private equity, asset management, and wealth management. The company has a market cap of 2.54B as of 2022 and a Return on Equity of 20.39%.
– Asia-Pac Financial Investment Co Ltd ($SEHK:08193)
Asia-Pac Financial Investment Co Ltd is a company that operates in the financial sector. It has a market cap of 62.96M as of 2022 and a Return on Equity of -28.99%. The company offers a range of financial services, including investment banking, asset management, and insurance.
Summary
Lazard Ltd is a global financial services firm that reported total revenue of USD 42.4 million for the quarter, a decrease of 79.9% year-on-year. Net income was USD 731.9 million, down 27.7% year-on-year. This decline in profitability is indicative of the difficult current economic environment and the associated market volatility, which will likely cause further losses for the company in the short term.
The company’s stock has also dropped significantly in line with market sentiment. Investors should continue to monitor the situation and assess the potential risk of continued losses before making any decisions.
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