ZOOMINFO TECHNOLOGIES INC (GTM) Stock Fundamental Analysis
NASDAQ:GTM - US98980F1049 - Common Stock
10.75 USD
+0.52 (+5.08%)
10.75 USD
0 (0%)
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 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.
In the past 5 years GTM always reported a positive cash flow from operatings.
1.2 Ratios
GTM has a Return On Assets of 1.38%. This is comparable to the rest of the industry: GTM outperforms 55.71% of its industry peers.
Looking at the Return On Equity, with a value of 5.75%, GTM is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
With a Return On Invested Capital value of 1.84%, GTM perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GTM is significantly below the industry average of 12.61%.
| 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
The Profit Margin of GTM (7.28%) is better than 71.43% of its industry peers.
GTM's Profit Margin has declined in the last couple of years.
GTM's Operating Margin of 14.56% is fine compared to the rest of the industry. GTM outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of GTM has remained more or less at the same level.
With an excellent Gross Margin value of 83.90%, GTM belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
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.
GTM has a worse debt/assets ratio than last year.
2.2 Solvency
GTM has an Altman-Z score of 0.75. This is a bad value and indicates that GTM is not financially healthy and even has some risk of bankruptcy.
GTM has a Altman-Z score (0.75) which is in line with its industry peers.
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.
GTM has a Debt to FCF ratio of 4.78. This is comparable to the rest of the industry: GTM outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that GTM is somewhat dependend on debt financing.
The Debt to Equity ratio of GTM (0.85) is worse than 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.22
WACC8.2%
2.3 Liquidity
A Current Ratio of 0.71 indicates that GTM may have some problems paying its short term obligations.
GTM has a Current ratio of 0.71. This is amonst the worse of the industry: GTM underperforms 81.43% of its industry peers.
A Quick Ratio of 0.71 indicates that GTM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, GTM is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
GTM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.37%.
The earnings per share for GTM have been decreasing by -32.41% on average. This is quite bad
GTM shows a decrease in Revenue. In the last year, the revenue decreased by -0.54%.
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)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
GTM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.57% yearly.
The Revenue is expected to grow by 3.66% on average over the next years.
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.
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
The Price/Earnings ratio is 10.54, which indicates a very decent valuation of GTM.
Based on the Price/Earnings ratio, GTM is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
GTM is valuated cheaply when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.12, which indicates a very decent valuation of GTM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GTM indicates a rather cheap valuation: GTM is cheaper than 81.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.80. GTM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 10.12 |
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 62.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GTM is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.34 | ||
| EV/EBITDA | 17.14 |
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)2.23
PEG (5Y)N/A
EPS Next 2Y4.63%
EPS Next 3Y5.39%
5. Dividend
5.1 Amount
No dividends for GTM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.75
+0.52 (+5.08%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.45%
Inst Owner ChangeN/A
Ins Owners6.44%
Ins Owner Change-0.16%
Market Cap3.43B
Analysts56.13
Price Target11.85 (10.23%)
Short Float %5.64%
Short Ratio3.66
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)5.27%
PT rev (3m)N/A
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)4.77%
EPS NY rev (1m)3.32%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)1.96%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)1.73%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 10.12 | ||
| P/S | 2.8 | ||
| P/FCF | 12.34 | ||
| P/OCF | 9.64 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.14 |
EPS(TTM)1.02
EY9.49%
EPS(NY)1.06
Fwd EY9.88%
FCF(TTM)0.87
FCFY8.1%
OCF(TTM)1.12
OCFY10.37%
SpS3.84
BVpS4.87
TBVpS-1.21
PEG (NY)2.23
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 | 0.75 |
F-Score6
WACC8.2%
ROIC/WACC0.22
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 Year15.45%
EBIT Next 3Y10.18%
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%