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Lazard (Lazard) Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lazard has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Lazard's Piotroski F-Score or its related term are showing as below:

LAZ' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of Lazard was 9. The lowest was 4. And the median was 6.


Lazard Piotroski F-Score Historical Data

The historical data trend for Lazard's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lazard Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 7.00 9.00 6.00 4.00

Lazard Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 4.00 4.00

Competitive Comparison

For the Capital Markets subindustry, Lazard's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lazard Piotroski F-Score Distribution

For the Capital Markets industry and Financial Services sector, Lazard's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Lazard's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was -22.172 + -124.013 + 7.139 + 63.567 = $-75 Mil.
Cash Flow from Operations was -411.418 + 200.996 + 33.488 + 341.596 = $165 Mil.
Revenue was 549.304 + 651.372 + 531.627 + 818.837 = $2,551 Mil.
Gross Profit was 99.337 + 79.141 + 167.022 + 259.63 = $605 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(5852.561 + 4567.517 + 4602.937 + 4295.506 + 4635.781) / 5 = $4790.8604 Mil.
Total Assets at the begining of this year (Dec22) was $5,853 Mil.
Long-Term Debt & Capital Lease Obligation was $2,175 Mil.
Total Current Assets was $2,290 Mil.
Total Current Liabilities was $1,032 Mil.
Net Income was 113.876 + 95.48 + 105.797 + 42.364 = $358 Mil.

Revenue was 714.383 + 656.596 + 738.283 + 716.374 = $2,826 Mil.
Gross Profit was 317.542 + 292.766 + 317.346 + 241.531 = $1,169 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(7147.181 + 6848.346 + 6711.796 + 6207.925 + 5852.561) / 5 = $6553.5618 Mil.
Total Assets at the begining of last year (Dec21) was $7,147 Mil.
Long-Term Debt & Capital Lease Obligation was $2,201 Mil.
Total Current Assets was $3,584 Mil.
Total Current Liabilities was $1,564 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lazard's current Net Income (TTM) was -75. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lazard's current Cash Flow from Operations (TTM) was 165. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=-75.479/5852.561
=-0.01289675

ROA (Last Year)=Net Income/Total Assets (Dec21)
=357.517/7147.181
=0.0500221

Lazard's return on assets of this year was -0.01289675. Lazard's return on assets of last year was 0.0500221. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Lazard's current Net Income (TTM) was -75. Lazard's current Cash Flow from Operations (TTM) was 165. ==> 165 > -75 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=2175.391/4790.8604
=0.45407105

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=2201.402/6553.5618
=0.33590925

Lazard's gearing of this year was 0.45407105. Lazard's gearing of last year was 0.33590925. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=2290.426/1032.394
=2.21855803

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=3583.671/1564.285
=2.29093228

Lazard's current ratio of this year was 2.21855803. Lazard's current ratio of last year was 2.29093228. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Lazard's number of shares in issue this year was 90.229. Lazard's number of shares in issue last year was 94.186. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=605.13/2551.14
=0.23719984

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1169.185/2825.636
=0.41377764

Lazard's gross margin of this year was 0.23719984. Lazard's gross margin of last year was 0.41377764. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=2551.14/5852.561
=0.43590148

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=2825.636/7147.181
=0.39534972

Lazard's asset turnover of this year was 0.43590148. Lazard's asset turnover of last year was 0.39534972. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+0+0+1+0+1
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lazard has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Lazard  (NYSE:LAZ) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Lazard Piotroski F-Score Related Terms

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Lazard (Lazard) Business Description

Traded in Other Exchanges
N/A
Address
2 Church Street, Clarendon House, Hamilton, BMU, HM11
Lazard has a storied history that can be traced back to 1848. The company's revenue is nearly equally split between financial advisory, such as acquisition and restructuring advisory, and asset management. The company's asset management business is primarily equities (over 80% of assets under management), has an international focus, and is geared toward institutional clients. By geography, the company earns approximately 60% of revenue in the Americas, 35% in EMEA, and 5% in Asia-Pacific. Lazard has offices across more than 20 countries and over 3,000 employees.
Executives
Michael Gathy officer: Chief Accounting Officer C/O LAZARD LTD, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Christian A. Weideman officer: General Counsel C/O APOLLO GLOBAL MANAGEMENT, INC., 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Alexander F. Stern officer: Chief Operating Officer C/O LAZARD LTD, 30 ROCKEFELLER PLAZA, NEW YORK NY 10020
Mary Ann Betsch officer: Chief Financial Officer C/O LAZARD LTD, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Lewis William M Jr director 9 WEST 57TH STREET, NEW YORK NY 10019
Scott D Hoffman officer: General Counsel C/O LAZARD LLC, 30 ROCKEFELLER PLAZA, NEW YORK NY 10020
Dominick Ragone officer: Chief Accounting Officer 767 5TH AVENUE, SUITE 4700, NEW YORK NY 10153
Ann-kristin Achleitner director THE PRIESTLEY CENTRE, 10 PRIESTLEY RD, SURREY RESEARCH PARK, GUILDFORD, SURREY X0 GU2 7XY
Ashish Bhutani director, officer: CEO of Lazard Asset Management
Peter Richard Orszag officer: CEO of Financial Advisory 30 ROCKEFELLER PLAZA, LAZARD, NEW YORK NY 10112
Alexandra Soto officer: Exec Human Capital & Workplace C/O LAZARD LTD, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Iris Knobloch director ONE TIME WARNER CENTER, NEW YORK NY 10019
Evan L Russo officer: Chief Financial Officer C/O LAZARD LTD, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Michelle Jarrard director C/O LAZARD LTD, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Sylvia Jay director 30 ROCKEFELLER PLAZA, NEW YORK NY 10020

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