ZALARIS ASA (ZAL.OL) Stock Fundamental Analysis
OSL:ZAL - Euronext Oslo - NO0010708910 - Common Stock - Currency: NOK
We assign a fundamental rating of 5 out of 10 to ZAL. ZAL was compared to 34 industry peers in the Professional Services industry. Both the profitability and the financial health of ZAL get a neutral evaluation. Nothing too spectacular is happening here. ZAL is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, ZAL could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
ZAL had positive earnings in the past year.
ZAL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ZAL reported negative net income in multiple years.
In the past 5 years ZAL always reported a positive cash flow from operatings.
1.2 Ratios
ZAL has a better Return On Assets (4.90%) than 61.76% of its industry peers.
Looking at the Return On Equity, with a value of 23.85%, ZAL is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.49%, ZAL is doing good in the industry, outperforming 73.53% of the companies in the same industry.
ZAL had an Average Return On Invested Capital over the past 3 years of 7.14%. This is below the industry average of 10.84%.
The last Return On Invested Capital (12.49%) for ZAL is above the 3 year average (7.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 23.85% | ||
| ROIC | 12.49% |
ROA(3y)-0.58%
ROA(5y)-0.28%
ROE(3y)-3.56%
ROE(5y)-2.63%
ROIC(3y)7.14%
ROIC(5y)5.76%
1.3 Margins
With a decent Profit Margin value of 3.85%, ZAL is doing good in the industry, outperforming 61.76% of the companies in the same industry.
In the last couple of years the Profit Margin of ZAL has grown nicely.
The Operating Margin of ZAL (8.44%) is better than 64.71% of its industry peers.
ZAL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.44% | ||
| PM (TTM) | 3.85% | ||
| GM | N/A |
OM growth 3Y38.03%
OM growth 5Y33.39%
PM growth 3Y14.91%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ZAL is creating some value.
Compared to 1 year ago, ZAL has about the same amount of shares outstanding.
Compared to 5 years ago, ZAL has more shares outstanding
ZAL has a better debt/assets ratio than last year.
2.2 Solvency
ZAL has an Altman-Z score of 2.97. This is not the best score and indicates that ZAL is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ZAL (2.97) is comparable to the rest of the industry.
ZAL has a debt to FCF ratio of 4.34. This is a neutral value as ZAL would need 4.34 years to pay back of all of its debts.
ZAL's Debt to FCF ratio of 4.34 is in line compared to the rest of the industry. ZAL outperforms 55.88% of its industry peers.
A Debt/Equity ratio of 1.77 is on the high side and indicates that ZAL has dependencies on debt financing.
ZAL's Debt to Equity ratio of 1.77 is on the low side compared to the rest of the industry. ZAL is outperformed by 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.59
WACC7.86%
2.3 Liquidity
A Current Ratio of 1.60 indicates that ZAL should not have too much problems paying its short term obligations.
The Current ratio of ZAL (1.60) is better than 85.29% of its industry peers.
ZAL has a Quick Ratio of 1.60. This is a normal value and indicates that ZAL is financially healthy and should not expect problems in meeting its short term obligations.
ZAL's Quick ratio of 1.60 is amongst the best of the industry. ZAL outperforms 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
ZAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 119.98%, which is quite impressive.
The Earnings Per Share has been growing by 35.55% on average over the past years. This is a very strong growth
The Revenue has grown by 44.37% in the past year. This is a very strong growth!
The Revenue has been growing by 11.63% on average over the past years. This is quite good.
EPS 1Y (TTM)119.98%
EPS 3Y35.55%
EPS 5YN/A
EPS Q2Q%490.96%
Revenue 1Y (TTM)44.37%
Revenue growth 3Y20.2%
Revenue growth 5Y11.63%
Sales Q2Q%16.21%
3.2 Future
The Earnings Per Share is expected to grow by 15.60% on average over the next years. This is quite good.
Based on estimates for the next years, ZAL will show a quite strong growth in Revenue. The Revenue will grow by 9.24% on average per year.
EPS Next Y-1.69%
EPS Next 2Y12.32%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue Next Year12.9%
Revenue Next 2Y10.59%
Revenue Next 3Y9.24%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
A Price/Earnings ratio of 26.46 indicates a quite expensive valuation of ZAL.
ZAL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.34, ZAL is valued at the same level.
A Price/Forward Earnings ratio of 12.28 indicates a correct valuation of ZAL.
Based on the Price/Forward Earnings ratio, ZAL is valued a bit cheaper than the industry average as 73.53% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ZAL to the average of the S&P500 Index (22.19), we can say ZAL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 12.28 |
4.2 Price Multiples
61.76% of the companies in the same industry are more expensive than ZAL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ZAL is valued a bit cheaper than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.14 | ||
| EV/EBITDA | 9.52 |
4.3 Compensation for Growth
The decent profitability rating of ZAL may justify a higher PE ratio.
ZAL's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.32%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
ZAL has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.95, ZAL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, ZAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y12.32%
EPS Next 3Y15.6%
OSL:ZAL (6/19/2025, 10:21:19 AM)
77
+0.8 (+1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners41.95%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.70B
Analysts80
Price Target102 (32.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.56%
PT rev (3m)2.56%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.09%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 12.28 | ||
| P/S | 0.99 | ||
| P/FCF | 14.14 | ||
| P/OCF | 11.69 | ||
| P/B | 6.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.52 |
EPS(TTM)2.91
EY3.78%
EPS(NY)6.27
Fwd EY8.14%
FCF(TTM)5.44
FCFY7.07%
OCF(TTM)6.59
OCFY8.56%
SpS77.53
BVpS12.52
TBVpS-2.22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 23.85% | ||
| ROCE | 18.47% | ||
| ROIC | 12.49% | ||
| ROICexc | 17.5% | ||
| ROICexgc | 41.95% | ||
| OM | 8.44% | ||
| PM (TTM) | 3.85% | ||
| GM | N/A | ||
| FCFM | 7.02% |
ROA(3y)-0.58%
ROA(5y)-0.28%
ROE(3y)-3.56%
ROE(5y)-2.63%
ROIC(3y)7.14%
ROIC(5y)5.76%
ROICexc(3y)17.04%
ROICexc(5y)13.22%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.55%
ROCE(5y)8.52%
ROICexcg growth 3YN/A
ROICexcg growth 5Y18%
ROICexc growth 3Y28.82%
ROICexc growth 5Y35.65%
OM growth 3Y38.03%
OM growth 5Y33.39%
PM growth 3Y14.91%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 39.81% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 69.95% | ||
| Profit Quality | 182.39% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 2.97 |
F-Score8
WACC7.86%
ROIC/WACC1.59
Cap/Depr(3y)52.11%
Cap/Depr(5y)45.36%
Cap/Sales(3y)2.71%
Cap/Sales(5y)2.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)119.98%
EPS 3Y35.55%
EPS 5YN/A
EPS Q2Q%490.96%
EPS Next Y-1.69%
EPS Next 2Y12.32%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue 1Y (TTM)44.37%
Revenue growth 3Y20.2%
Revenue growth 5Y11.63%
Sales Q2Q%16.21%
Revenue Next Year12.9%
Revenue Next 2Y10.59%
Revenue Next 3Y9.24%
Revenue Next 5YN/A
EBIT growth 1Y81.66%
EBIT growth 3Y65.91%
EBIT growth 5Y48.9%
EBIT Next Year97.03%
EBIT Next 3Y33.23%
EBIT Next 5YN/A
FCF growth 1Y804.54%
FCF growth 3Y103.15%
FCF growth 5Y43.58%
OCF growth 1Y21161.5%
OCF growth 3Y58.47%
OCF growth 5Y25.33%