CS Disco, Inc.
$3.88
-8.7%CS Disco, Inc., a legal technology company, provides cloud-native and artificial intelligence-powered legal solutions for ediscovery, legal document review, and case management for enterprises, law firms, legal services providers, and governments. The company offers DISCO Ediscovery, a solution that automates ediscovery process and saves legal departments from manual tasks associated with collecting, processing, enriching, searching, reviewing, analyzing, producing, and using enterprise data that is at issue in legal matters. It also provides DISCO Review, an AI-powered document review solution, which consistently delivers legal document reviews; and DISCO Case Builder, a solution that allows legal professionals to collaborate with teams to build a compelling case by offering a single place to search, organize, and review witness testimony and other legal data. The company's tools are used in various legal matters comprising litigation, investigation, compliance, and diligence. CS Disco, Inc. was founded in 2012 and is headquartered in Austin, Texas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -5.4).
Valuation inputs: P/E -5.4, earnings yield N/A, momentum -8.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -34.6%, ROIC -36.1%).
Profitability stack: net margin -28.3%, ROE -34.6%, ROIC -36.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +26.2%, momentum -8.7%, net margin -28.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
CS Disco, Inc. Market vs Earnings Trajectory
Loading price and EPS data...
CS Disco, Inc. Fair Value Envelope
CS Disco, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
CS Disco, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
CS Disco, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
CS Disco, Inc. Street Expectations Map
Wall Street analysts project that LAW stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 9.00, with estimates ranging from a low of 8.00 to a high of 10.00.
The consensus 1-year price target stands at 9.00, with estimates ranging from a low of 8.00 to a high of 10.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
CS Disco, Inc. Insider Positioning
During the last 12 months, insiders have purchased $4.00M and sold $753K worth of LAW shares, resulting in $3.24M of net buying activity.
3 Months
9.0K
35.73K
31.6K
114.13K
-78K
-$78K
3-6 Months
1.1M
3.65M
68.8K
327.56K
+3.3M
+$3.32M
6-9 Months
52.2K
315.52K
47.3K
311.25K
+4K
+$4K
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Goodman Robert P
Director
$3.28M
Bogan Thomas F
Director
$271K
Hill Scott A
Director
$169K
Srinivasan Krishna
Director
$144K
Friedrichsen Eric
Director, Officer: Chief Executive Officer
$125K
Top Sellers
Antoon Melanie
Officer: Evp, Chief Customer Officer
$296K
Garcia Susan
Officer: Gc & Chief Compliance Officer
$130K
Lafair Michael
Officer: Evp, Chief Financial Officer
$121K
Herckis Karen
Officer: Evp, Chief Hr Officer
$107K
Crum Richard Francis
Officer: Evp, Chief Prod & Tech Officer
$99K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $3.24M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider buyers and 5 sellers. Equal participation suggests mixed or neutral insider views.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
No Dividend Yield Data
LAW has not reported any dividend yield values in the available annual periods.
law Dividend History
Learning Layer
Related Guides
Build conviction on LAW by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.