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Founded in 1848, Lazard is a global financial advisory and asset management firm with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions …
10.57% operating margin is respectable but not wide. ROIC at 8.54%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 1.5%, essentially flat. Margins also contracted 2.1pp. This is a business that needs a catalyst.
Free cash flow declined 30% versus the prior year, cash generation momentum has weakened. ROIC dropped from 10.56% to 8.54%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$3.21B
▲ +1.5% YoY
Net Income (TTM)
$277M
▼ -15.4% YoY
Op. Margin
11.30%
▼ -2.1pp YoY
ROIC
9.59%
▼ -2.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$497M
▼ -30.1% YoY
Op. Cash Flow (TTM)
$518M
▼ -30.1% YoY
Net Debt
$1.14B
Cash & Equiv.
$1.02B
5Y CAGR: +3.8%
5Y CAGR: -1.0%
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