Lazard LTD’s 7.2% Yield Could Be At Risk in Upcoming Recession
December 2, 2023
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Lazard Ltd ($NYSE:LAZ) (NYSE: LAZ) has been a reliable source of income for investors in recent years, with its 7.2% yield return.
However, the current economic environment might be a cause for concern for those who are relying on this yield, as the company could be at risk due to an upcoming recession. Lazard Ltd is a global financial advisory and asset management firm. Its services range from long-term financial strategies to mergers and acquisitions, restructuring, and capital markets advisory. With offices across the globe, it has become a major player in the world of finance. In a recessionary environment, the potential risks associated with Lazard Ltd are twofold. Firstly, demand for its services could decrease as companies look to reduce spending and cut back on the financial advice they are relying upon. Secondly, with rising interest rates, the yield that Lazard Ltd provides could also be affected. Although it has been a reliable source of income for investors in recent years, this might not be the case during an economic downturn. Ultimately, it is difficult to predict how Lazard Ltd will fare in the face of a recessionary environment. As such, investors should consider the risks associated with investing in the company before making any decisions. While the yield return of 7.2% is enticing, there is a chance that it could be at risk if a recession takes hold.
Analysis
GoodWhale conducted an analysis of LAZARD LTD‘s wellbeing. We found that LAZARD LTD has a high health score of 8/10 based on our Star Chart, signifying that the company is able to pay off debt and fund future operations. Such a company may be of interest to investors who are looking for steady dividends and income. We also found that LAZARD LTD is strong in dividend and profitability, but weak in asset and growth. More…
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 |
| 2.45k | -100.61 | -3.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lazard Ltd. More…
| Operations | Investing | Financing |
| 137.39 | -53.89 | -2.2k |
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 |
| 4.3k | 3.79k | 4.13 |
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 |
| -0.5% | 6.1% | -0.1% |
| FCF Margin | ROE | ROA |
| 3.8% | -0.2% | -0.0% |
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 leading global financial advisory and asset-management firm with a long-standing history of success. Recently, Lazard’s stocks have been gaining attention due to their high dividend yield of 7.2%.
However, investors must take into account the potential risks associated with investing in Lazard during the upcoming recession. Since the stock price is dependent on the company’s financial strength and its ability to generate profits, a major economic downturn could lead to reduced profits and stock price declines. Therefore, investors should carefully consider the merits of investing in Lazard and make sure that the current dividend yield is sustainable in the long run.
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