ZOOMINFO TECHNOLOGIES INC (GTM) Stock Fundamental Analysis
NASDAQ:GTM - Nasdaq - US98980F1049 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GTM. GTM was compared to 71 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GTM had positive earnings in the past year.
GTM had a positive operating cash flow in the past year.
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
GTM has a Return On Assets (0.64%) which is comparable to the rest of the industry.
The Return On Equity of GTM (2.48%) is better than 61.97% of its industry peers.
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
Looking at the Profit Margin, with a value of 3.37%, GTM is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
GTM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.65%, GTM is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
GTM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 83.99%, GTM belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
GTM's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GTM is destroying value.
Compared to 1 year ago, GTM has less shares outstanding
Compared to 5 years ago, GTM has less shares outstanding
Compared to 1 year ago, GTM has a worse debt to assets ratio.
2.2 Solvency
GTM has an Altman-Z score of 0.71. This is a bad value and indicates that GTM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.71, GTM perfoms like the industry average, outperforming 43.66% of the companies in the same industry.
GTM has a debt to FCF ratio of 4.01. This is a neutral value as GTM would need 4.01 years to pay back of all of its debts.
GTM's Debt to FCF ratio of 4.01 is fine compared to the rest of the industry. GTM outperforms 61.97% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that GTM is somewhat dependend on debt financing.
The Debt to Equity ratio of GTM (0.74) is worse than 73.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.14
WACC7.96%
2.3 Liquidity
A Current Ratio of 0.66 indicates that GTM may have some problems paying its short term obligations.
GTM has a worse Current ratio (0.66) than 88.73% of its industry peers.
A Quick Ratio of 0.66 indicates that GTM may have some problems paying its short term obligations.
With a Quick ratio value of 0.66, GTM is not doing good in the industry: 87.32% of the companies in the same industry are doing better.
| 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.
Measured over the past years, GTM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -32.41% on average per year.
GTM shows a decrease in Revenue. In the last year, the revenue decreased by -3.12%.
The Revenue has been growing by 32.86% on average over the past years. This is a very strong growth!
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
GTM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.91% yearly.
GTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.58% yearly.
EPS Next Y1.23%
EPS Next 2Y2.8%
EPS Next 3Y4.33%
EPS Next 5Y5.91%
Revenue Next Year-0.25%
Revenue Next 2Y1.23%
Revenue Next 3Y3.19%
Revenue Next 5Y4.58%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GTM is valuated reasonably with a Price/Earnings ratio of 10.77.
Based on the Price/Earnings ratio, GTM is valued cheaply inside the industry as 81.69% of the companies are valued more expensively.
GTM is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
GTM is valuated reasonably with a Price/Forward Earnings ratio of 9.87.
Based on the Price/Forward Earnings ratio, GTM is valued cheaply inside the industry as 80.28% of the companies are valued more expensively.
GTM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GTM indicates a somewhat cheap valuation: GTM is cheaper than 60.56% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GTM is valued a bit cheaper than the industry average as 78.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.2 | ||
| EV/EBITDA | 23.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GTM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of GTM may justify a higher PE ratio.
PEG (NY)8.77
PEG (5Y)N/A
EPS Next 2Y2.8%
EPS Next 3Y4.33%
5. Dividend
5.1 Amount
No dividends for GTM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.12
-0.03 (-0.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.64%
Inst Owner ChangeN/A
Ins Owners6.43%
Ins Owner Change8.41%
Market Cap3.42B
Analysts56.67
Price Target11.51 (13.74%)
Short Float %7.11%
Short Ratio3.59
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.87 | ||
| P/S | 2.83 | ||
| P/FCF | 11.2 | ||
| P/OCF | 9.19 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.48 |
EPS(TTM)0.94
EY9.29%
EPS(NY)1.03
Fwd EY10.13%
FCF(TTM)0.9
FCFY8.93%
OCF(TTM)1.1
OCFY10.88%
SpS3.58
BVpS4.86
TBVpS-0.91
PEG (NY)8.77
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 | 0.71 |
F-Score5
WACC7.96%
ROIC/WACC0.14
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 Y1.23%
EPS Next 2Y2.8%
EPS Next 3Y4.33%
EPS Next 5Y5.91%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%-1.42%
Revenue Next Year-0.25%
Revenue Next 2Y1.23%
Revenue Next 3Y3.19%
Revenue Next 5Y4.58%
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%