ZOOMINFO TECHNOLOGIES INC (GTM) Stock Fundamental Analysis
USA - NASDAQ:GTM - US98980F1049 - Common Stock
10.41 USD
-0.09 (-0.86%)
10.61 USD
+0.2 (+1.92%)
Taking everything into account, GTM scores 4 out of 10 in our fundamental rating. GTM was compared to 69 industry peers in the Interactive Media & Services industry. While GTM is still in line with the averages on profitability rating, there are concerns on its financial health. GTM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GTM was profitable.
GTM had a positive operating cash flow in the past year.
GTM had positive earnings in 4 of the past 5 years.
GTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GTM has a Return On Assets (1.38%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 5.75%, GTM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
GTM's Return On Invested Capital of 1.84% is in line compared to the rest of the industry. GTM outperforms 57.97% of its industry peers.
GTM had an Average Return On Invested Capital over the past 3 years of 2.12%. This is significantly below the industry average of 12.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 5.75% | ||
| ROIC | 1.84% |
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
GTM has a Profit Margin of 7.28%. This is in the better half of the industry: GTM outperforms 71.01% of its industry peers.
GTM's Profit Margin has declined in the last couple of years.
GTM has a Operating Margin of 14.56%. This is amongst the best in the industry. GTM outperforms 81.16% of its industry peers.
In the last couple of years the Operating Margin of GTM has remained more or less at the same level.
GTM has a better Gross Margin (83.90%) than 84.06% of its industry peers.
In the last couple of years the Gross Margin of GTM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.56% | ||
| PM (TTM) | 7.28% | ||
| GM | 83.9% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GTM is destroying value.
The number of shares outstanding for GTM has been reduced compared to 1 year ago.
GTM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GTM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that GTM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GTM (0.74) is comparable to the rest of the industry.
The Debt to FCF ratio of GTM is 4.78, which is a neutral value as it means it would take GTM, 4.78 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.78, GTM is in the better half of the industry, outperforming 62.32% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that GTM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, GTM is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.21
WACC8.67%
2.3 Liquidity
A Current Ratio of 0.71 indicates that GTM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.71, GTM is doing worse than 79.71% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that GTM may have some problems paying its short term obligations.
The Quick ratio of GTM (0.71) is worse than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.37% over the past year.
GTM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -32.41% yearly.
GTM shows a decrease in Revenue. In the last year, the revenue decreased by -0.54%.
The Revenue has been growing by 32.86% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)7.37%
EPS 3Y-32.41%
EPS 5YN/A
EPS Q2Q%47.06%
Revenue 1Y (TTM)-0.54%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%5.21%
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 6.57% on average per year.
GTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.66% yearly.
EPS Next Y4.73%
EPS Next 2Y4.63%
EPS Next 3Y5.39%
EPS Next 5Y6.57%
Revenue Next Year1.48%
Revenue Next 2Y1.27%
Revenue Next 3Y2.36%
Revenue Next 5Y3.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
GTM is valuated reasonably with a Price/Earnings ratio of 10.21.
GTM's Price/Earnings ratio is rather cheap when compared to the industry. GTM is cheaper than 84.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.91. GTM is valued rather cheaply when compared to this.
GTM is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GTM indicates a rather cheap valuation: GTM is cheaper than 81.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.30, GTM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
GTM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GTM is cheaper than 66.67% of the companies in the same industry.
76.81% of the companies in the same industry are more expensive than GTM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.95 | ||
| EV/EBITDA | 16.84 |
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)2.16
PEG (5Y)N/A
EPS Next 2Y4.63%
EPS Next 3Y5.39%
5. Dividend
5.1 Amount
GTM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.41
-0.09 (-0.86%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.27%
Inst Owner ChangeN/A
Ins Owners6.52%
Ins Owner Change-7.57%
Market Cap3.32B
Analysts56
Price Target11.85 (13.83%)
Short Float %9.02%
Short Ratio5.41
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)5.46%
Min EPS beat(2)3.29%
Max EPS beat(2)7.62%
EPS beat(4)4
Avg EPS beat(4)13%
Min EPS beat(4)3.29%
Max EPS beat(4)26.2%
EPS beat(8)7
Avg EPS beat(8)5.4%
EPS beat(12)11
Avg EPS beat(12)8.51%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.48%
Min Revenue beat(2)2.46%
Max Revenue beat(2)2.49%
Revenue beat(4)4
Avg Revenue beat(4)2.05%
Min Revenue beat(4)0.41%
Max Revenue beat(4)2.82%
Revenue beat(8)5
Avg Revenue beat(8)0.24%
Revenue beat(12)6
Avg Revenue beat(12)0.12%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)2.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.24%
EPS NY rev (1m)0%
EPS NY rev (3m)3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 9.8 | ||
| P/S | 2.71 | ||
| P/FCF | 11.95 | ||
| P/OCF | 9.34 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.84 |
EPS(TTM)1.02
EY9.8%
EPS(NY)1.06
Fwd EY10.2%
FCF(TTM)0.87
FCFY8.37%
OCF(TTM)1.12
OCFY10.71%
SpS3.84
BVpS4.87
TBVpS-1.21
PEG (NY)2.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 5.75% | ||
| ROCE | 3.06% | ||
| ROIC | 1.84% | ||
| ROICexc | 1.9% | ||
| ROICexgc | 2.89% | ||
| OM | 14.56% | ||
| PM (TTM) | 7.28% | ||
| GM | 83.9% | ||
| FCFM | 22.65% |
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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 4.78 | ||
| Debt/EBITDA | 4.95 | ||
| Cap/Depr | 88.21% | ||
| Cap/Sales | 6.35% | ||
| Interest Coverage | 3.92 | ||
| Cash Conversion | 133.27% | ||
| Profit Quality | 311.1% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.74 |
F-Score6
WACC8.67%
ROIC/WACC0.21
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)7.37%
EPS 3Y-32.41%
EPS 5YN/A
EPS Q2Q%47.06%
EPS Next Y4.73%
EPS Next 2Y4.63%
EPS Next 3Y5.39%
EPS Next 5Y6.57%
Revenue 1Y (TTM)-0.54%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%5.21%
Revenue Next Year1.48%
Revenue Next 2Y1.27%
Revenue Next 3Y2.36%
Revenue Next 5Y3.66%
EBIT growth 1Y9.92%
EBIT growth 3Y9.06%
EBIT growth 5Y30.94%
EBIT Next Year15.64%
EBIT Next 3Y9.81%
EBIT Next 5YN/A
FCF growth 1Y-31.36%
FCF growth 3Y3.35%
FCF growth 5Y58.13%
OCF growth 1Y-17.56%
OCF growth 3Y7.25%
OCF growth 5Y52.76%