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1. Company Snapshot

1.a. Company Description

Lazard Ltd, together with its subsidiaries, operates as a financial advisory and asset management firm in North America, Europe, Asia, Australia, and Central and South America.It operates in two segments, Financial Advisory and Asset Management.The Financial Advisory segment offers various financial advisory services regarding mergers and acquisitions, restructurings, capital advisory, shareholder advisory, capital raising, sovereign advisory, and other strategic advisory matters.


This segment serves corporate, partnership, institutional, government, sovereign, and individual clients across various industry areas, including consumers, financial institutions, healthcare and life sciences, industrials, power and energy/infrastructure, and real estate, as well as technology, telecommunication, and media and entertainment.The Asset Management segment offers a range of investment solutions, and investment and wealth management services in equity and fixed income strategies; asset allocation strategies; and alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries, and private clients.The company was founded in 1848 and is based in Hamilton, Bermuda.

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1.b. Last Insights on LAZ

Lazard's recent performance was driven by strong Q2 earnings, beating estimates with $0.52 per share, and revenue growth. Assets under management (AUM) rose 1.8% in August to $258.4B, driven by market gains and FX boosts. The company also saw a surge in financial advisory revenue, up 20% year-over-year. Recent appointments, including Jesper Jensen as Managing Director and CEO of Investment Banking for Denmark, and Dr. Geoffrey Porges to the Healthcare Advisory Group, have expanded Lazard's operations and expertise.

1.c. Company Highlights

2. Lazard's Q3 2025 Earnings: A Strong Performance

Lazard reported record firm-wide revenue of $725 million for the third quarter of 2025, a 12% increase from the same period last year. Financial Advisory revenue was $422 million, up 14% year-over-year, driven by notable transactions such as Mallinckrodt Pharmaceuticals' $6.7 billion combination with Endo Pharmaceuticals. Asset Management revenue rose 8% to $294 million, with average Assets Under Management (AUM) reaching $257 billion, a 5% increase from the third quarter of 2024. The company's earnings per share (EPS) came in at $0.56, exceeding estimates of $0.4443. The strong revenue growth and EPS beat are a testament to Lazard's diversified business model and its ability to execute on its long-term growth strategy, Lazard 2030.

Publication Date: Oct -28

📋 Highlights
  • Record Revenue Growth: Firm-wide revenue reached $725 million, up 12% YoY, driven by 14% growth in Financial Advisory ($422 million) and 8% in Asset Management ($294 million).
  • Strong Asset Management Performance: Achieved $257 billion AUM (+5% YoY), $1.6 billion in net positive flows YTD, and record gross inflows, with 80-95% of new mandates outside the US.
  • Strategic Shareholder Returns: Returned $60 million to shareholders and declared a $0.50 quarterly dividend, reflecting confidence in financial stability.
  • Expansion in High-Growth Areas: Focused on quant equities, emerging markets, and customized solutions, with 80-95% of new mandates in these active management niches.
  • Future M&A Outlook: Anticipates increased M&A activity in 2026 driven by private equity resurgence, with current advisory pipeline including a $6.7B pharma combination and $3.1B food acquisition.

Business Segment Performance

Lazard's Financial Advisory business saw significant growth, driven by a strong M&A pipeline. The company's Asset Management business also performed well, with record gross inflows and net positive flows of $1.6 billion year-to-date. The average fee rate increased slightly in the quarter, and the company expects it to remain roughly flat in the near term, depending on the specific inflows and product mix. CEO Peter Orszag highlighted the company's efforts to leverage AI and its recent hires, including Chris Hogbin as CEO of Lazard Asset Management, which will drive future growth.

Valuation and Growth Prospects

With a P/E Ratio of 17.84 and an expected revenue growth rate of 17.8% next year, Lazard's valuation appears reasonable. The company's ROE of 38.73% and ROIC of 11.1% indicate strong profitability. The Dividend Yield is 3.98%, providing a relatively attractive return for income investors. Analysts expect the company to continue its growth trajectory, driven by its diversified business model and strategic investments in areas like AI and asset management.

Outlook and Risks

Lazard is well-positioned for future growth, with a strong pipeline of M&A deals and a growing Asset Management business. However, the company faces risks, including a potential US government shutdown, which could impact some deals that require SEC or Department of Justice approval. Nevertheless, the company's diversified business model and strategic investments are expected to drive long-term growth and deliver value to shareholders.

3. NewsRoom

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Lazard Bolsters Global Industrials Practice by Adding Three New Managing Directors

Nov -25

Source: businesswire.com

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Lazard CEO and Chairman Peter R. Orszag to Speak at the 2025 Goldman Sachs U.S. Financial Services Conference

Nov -20

Source: businesswire.com

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Lazard's AUM Edges Higher in October: Will the Growth Trend Continue?

Nov -13

Source: zacks.com

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Lazard Reports October 2025 Assets Under Management

Nov -12

Source: businesswire.com

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Lazard banker predicts renewed wave of London IPOs in 2026

Nov -10

Source: proactiveinvestors.co.uk

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Teacher Retirement System of Texas Has $1.74 Million Stock Holdings in Lazard, Inc. $LAZ

Nov -04

Source: defenseworld.net

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Lazard Freres Gestion S.A.S. Grows Position in Meta Platforms, Inc. $META

Nov -04

Source: defenseworld.net

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Lazard Freres Gestion S.A.S. Sells 94,820 Shares of Alphabet Inc. $GOOGL

Nov -04

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.91%)

6. Segments

Financial Advisory

Expected Growth: 8%

Lazard Ltd's 8% growth in Financial Advisory is driven by increasing M&A activity, strategic partnerships, and expansion into new markets. Strong brand reputation, diverse client base, and expertise in complex transactions also contribute to growth. Additionally, the company's ability to adapt to changing market conditions and regulatory environments has enabled it to capitalize on emerging opportunities.

Asset Management

Expected Growth: 10%

Lazard's Asset Management 10% growth driven by increasing demand for alternative investments, expansion into emerging markets, and strategic acquisitions. Strong brand reputation, diversified product offerings, and investment in digital platforms also contribute to growth. Additionally, the trend towards passive investing and ETFs, as well as the need for sustainable and ESG-focused investment solutions, support Lazard's growth momentum.

Corporate

Expected Growth: 9%

Lazard Ltd's corporate segment growth of 9% is driven by increasing demand for M&A advisory services, strategic partnerships, and expansion into new markets. Additionally, the company's diversified revenue streams, cost savings initiatives, and strong brand reputation contribute to its growth momentum.

7. Detailed Products

Mergers and Acquisitions Advisory

Lazard Ltd provides strategic advisory services to clients on mergers, acquisitions, divestitures, and other strategic transactions.

Capital Raising Advisory

Lazard advises clients on capital raising strategies, including equity and debt offerings, to help them achieve their financing goals.

Restructuring and Debt Advisory

Lazard provides restructuring and debt advisory services to help clients navigate financial distress, debt restructuring, and turnaround situations.

Shareholder Advisory

Lazard advises clients on shareholder activism, proxy contests, and other shareholder-related matters to help them navigate complex governance issues.

Sovereign Advisory

Lazard advises governments and sovereign entities on strategic transactions, including privatizations, public-private partnerships, and infrastructure development.

Asset Management

Lazard's asset management business provides investment management services to institutional clients, including pension funds, endowments, and sovereign wealth funds.

8. Lazard Ltd's Porter Forces

Forces Ranking

Threat Of Substitutes

Lazard Ltd's financial advisory services are highly specialized, making it difficult for substitutes to emerge. However, the rise of fintech and digital platforms may pose a moderate threat in the future.

Bargaining Power Of Customers

Lazard Ltd's clients are primarily large corporations and governments, which have limited bargaining power due to their reliance on the company's expertise and reputation.

Bargaining Power Of Suppliers

Lazard Ltd's suppliers are primarily individual professionals and small firms, which have limited bargaining power due to the company's strong brand and market position.

Threat Of New Entrants

The financial advisory industry has high barriers to entry, including regulatory hurdles and the need for specialized expertise, making it difficult for new entrants to compete with Lazard Ltd.

Intensity Of Rivalry

The financial advisory industry is highly competitive, with several established players competing for market share. Lazard Ltd faces intense rivalry from companies like Goldman Sachs, Morgan Stanley, and JPMorgan Chase.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.71%
Debt Cost 4.98%
Equity Weight 19.29%
Equity Cost 11.26%
WACC 6.19%
Leverage 418.29%

11. Quality Control: Lazard Ltd passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Houlihan Lokey

A-Score: 5.9/10

Value: 2.0

Growth: 6.8

Quality: 7.8

Yield: 3.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Evercore

A-Score: 5.6/10

Value: 3.3

Growth: 5.8

Quality: 8.2

Yield: 3.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Piper Sandler

A-Score: 5.6/10

Value: 1.8

Growth: 5.4

Quality: 7.9

Yield: 5.0

Momentum: 6.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Lazard

A-Score: 5.5/10

Value: 4.4

Growth: 4.0

Quality: 5.5

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
LPL Financial Holdings

A-Score: 5.3/10

Value: 5.0

Growth: 6.9

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
StoneX

A-Score: 5.2/10

Value: 6.9

Growth: 4.8

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.39$

Current Price

50.39$

Potential

-0.00%

Expected Cash-Flows