ZOOMINFO TECHNOLOGIES INC (GTM) Stock Fundamental Analysis
NASDAQ:GTM - Nasdaq - US98980F1049 - Common Stock - Currency: USD
GTM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. GTM has a medium profitability rating, but doesn't score so well on its financial health evaluation. GTM may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year GTM was profitable.
In the past year GTM had a positive cash flow from operations.
GTM had positive earnings in 4 of the past 5 years.
In the past 5 years GTM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GTM (0.64%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.48%, GTM is in the better half of the industry, outperforming 61.43% of the companies in the same industry.
The Return On Invested Capital of GTM (1.09%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for GTM is significantly below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 2.48% | ||
| ROIC | 1.09% |
ROA(3y)0.97%
ROA(5y)0.79%
ROE(3y)3.19%
ROE(5y)2.49%
ROIC(3y)2.12%
ROIC(5y)1.92%
1.3 Margins
With a decent Profit Margin value of 3.37%, GTM is doing good in the industry, outperforming 61.43% of the companies in the same industry.
GTM's Profit Margin has declined in the last couple of years.
GTM's Operating Margin of 8.65% is fine compared to the rest of the industry. GTM outperforms 72.86% of its industry peers.
GTM's Operating Margin has been stable in the last couple of years.
GTM's Gross Margin of 83.99% is amongst the best of the industry. GTM outperforms 81.43% of its industry peers.
In the last couple of years the Gross Margin of GTM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.65% | ||
| PM (TTM) | 3.37% | ||
| GM | 83.99% |
OM growth 3Y-7.24%
OM growth 5Y-1.45%
PM growth 3Y-46.48%
PM growth 5YN/A
GM growth 3Y1.23%
GM growth 5Y2.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GTM is destroying value.
Compared to 1 year ago, GTM has less shares outstanding
The number of shares outstanding for GTM has been reduced compared to 5 years ago.
GTM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that GTM is in the distress zone and has some risk of bankruptcy.
GTM has a Altman-Z score (0.72) which is in line with its industry peers.
The Debt to FCF ratio of GTM is 4.01, which is a neutral value as it means it would take GTM, 4.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GTM (4.01) is better than 61.43% of its industry peers.
GTM has a Debt/Equity ratio of 0.74. This is a neutral value indicating GTM is somewhat dependend on debt financing.
GTM has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: GTM underperforms 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.13
WACC8.35%
2.3 Liquidity
A Current Ratio of 0.66 indicates that GTM may have some problems paying its short term obligations.
GTM's Current ratio of 0.66 is on the low side compared to the rest of the industry. GTM is outperformed by 88.57% of its industry peers.
A Quick Ratio of 0.66 indicates that GTM may have some problems paying its short term obligations.
The Quick ratio of GTM (0.66) is worse than 87.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for GTM have decreased by -9.62% in the last year.
The earnings per share for GTM have been decreasing by -32.41% on average. This is quite bad
Looking at the last year, GTM shows a decrease in Revenue. The Revenue has decreased by -3.12% in the last year.
Measured over the past years, GTM shows a very strong growth in Revenue. The Revenue has been growing by 32.86% on average per year.
EPS 1Y (TTM)-9.62%
EPS 3Y-32.41%
EPS 5YN/A
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%-1.42%
3.2 Future
Based on estimates for the next years, GTM will show a small growth in Earnings Per Share. The EPS will grow by 5.24% on average per year.
GTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.63% yearly.
EPS Next Y1.37%
EPS Next 2Y2.84%
EPS Next 3Y4.93%
EPS Next 5Y5.24%
Revenue Next Year-0.25%
Revenue Next 2Y1.06%
Revenue Next 3Y2.78%
Revenue Next 5Y3.63%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.07, which indicates a very decent valuation of GTM.
Based on the Price/Earnings ratio, GTM is valued cheaper than 82.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of GTM to the average of the S&P500 Index (27.54), we can say GTM is valued rather cheaply.
GTM is valuated reasonably with a Price/Forward Earnings ratio of 10.15.
84.29% of the companies in the same industry are more expensive than GTM, based on the Price/Forward Earnings ratio.
GTM is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GTM.
Based on the Price/Free Cash Flow ratio, GTM is valued cheaply inside the industry as 81.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.52 | ||
| EV/EBITDA | 23.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GTM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.09
PEG (5Y)N/A
EPS Next 2Y2.84%
EPS Next 3Y4.93%
5. Dividend
5.1 Amount
GTM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.41
-0.04 (-0.38%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners86.65%
Inst Owner ChangeN/A
Ins Owners6.43%
Ins Owner Change0.72%
Market Cap3.52B
Analysts56.13
Price Target11.26 (8.17%)
Short Float %5.41%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.1%
Min EPS beat(2)3.29%
Max EPS beat(2)14.9%
EPS beat(4)3
Avg EPS beat(4)4.01%
Min EPS beat(4)-28.36%
Max EPS beat(4)26.2%
EPS beat(8)7
Avg EPS beat(8)5.88%
EPS beat(12)11
Avg EPS beat(12)9.44%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.66%
Min Revenue beat(2)2.49%
Max Revenue beat(2)2.82%
Revenue beat(4)3
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-6.21%
Max Revenue beat(4)2.82%
Revenue beat(8)4
Avg Revenue beat(8)-0.28%
Revenue beat(12)6
Avg Revenue beat(12)0.32%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.21%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.07%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 10.15 | ||
| P/S | 2.91 | ||
| P/FCF | 11.52 | ||
| P/OCF | 9.45 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.93 |
EPS(TTM)0.94
EY9.03%
EPS(NY)1.03
Fwd EY9.86%
FCF(TTM)0.9
FCFY8.68%
OCF(TTM)1.1
OCFY10.58%
SpS3.58
BVpS4.86
TBVpS-0.91
PEG (NY)8.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 2.48% | ||
| ROCE | 1.81% | ||
| ROIC | 1.09% | ||
| ROICexc | 1.12% | ||
| ROICexgc | 1.71% | ||
| OM | 8.65% | ||
| PM (TTM) | 3.37% | ||
| GM | 83.99% | ||
| FCFM | 25.27% |
ROA(3y)0.97%
ROA(5y)0.79%
ROE(3y)3.19%
ROE(5y)2.49%
ROIC(3y)2.12%
ROIC(5y)1.92%
ROICexc(3y)2.27%
ROICexc(5y)2.09%
ROICexgc(3y)3.49%
ROICexgc(5y)4.68%
ROCE(3y)3.51%
ROCE(5y)3.19%
ROICexcg growth 3Y11.98%
ROICexcg growth 5YN/A
ROICexc growth 3Y11.22%
ROICexc growth 5Y-2.81%
OM growth 3Y-7.24%
OM growth 5Y-1.45%
PM growth 3Y-46.48%
PM growth 5YN/A
GM growth 3Y1.23%
GM growth 5Y2.11%
F-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.01 | ||
| Debt/EBITDA | 6.34 | ||
| Cap/Depr | 76.2% | ||
| Cap/Sales | 5.53% | ||
| Interest Coverage | 2.43 | ||
| Cash Conversion | 193.61% | ||
| Profit Quality | 749.51% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.72 |
F-Score5
WACC8.35%
ROIC/WACC0.13
Cap/Depr(3y)47.17%
Cap/Depr(5y)41.73%
Cap/Sales(3y)3.37%
Cap/Sales(5y)3.36%
Profit Quality(3y)680.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.62%
EPS 3Y-32.41%
EPS 5YN/A
EPS Q2Q%-11.54%
EPS Next Y1.37%
EPS Next 2Y2.84%
EPS Next 3Y4.93%
EPS Next 5Y5.24%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%-1.42%
Revenue Next Year-0.25%
Revenue Next 2Y1.06%
Revenue Next 3Y2.78%
Revenue Next 5Y3.63%
EBIT growth 1Y-57.54%
EBIT growth 3Y9.06%
EBIT growth 5Y30.94%
EBIT Next Year15.08%
EBIT Next 3Y10.6%
EBIT Next 5YN/A
FCF growth 1Y-21.97%
FCF growth 3Y3.35%
FCF growth 5Y58.13%
OCF growth 1Y-11.39%
OCF growth 3Y7.25%
OCF growth 5Y52.76%