ZALARIS ASA (ZAL.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:ZAL - NO0010708910 - Common Stock
89 NOK
+0.8 (+0.91%)
Overall ZAL gets a fundamental rating of 6 out of 10. We evaluated ZAL against 36 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 valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ZAL was profitable.
- 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.
- ZAL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ZAL (5.60%) is better than 69.44% of its industry peers.
- With a decent Return On Equity value of 27.88%, ZAL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 13.39%, ZAL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ZAL is below the industry average of 11.62%.
- The 3 year average ROIC (7.14%) for ZAL is below the current ROIC(13.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 27.88% | ||
| ROIC | 13.39% |
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
- ZAL has a better Profit Margin (5.12%) than 66.67% of its industry peers.
- ZAL's Profit Margin has improved in the last couple of years.
- ZAL has a Operating Margin of 10.60%. This is in the better half of the industry: ZAL outperforms 72.22% of its industry peers.
- ZAL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.6% | ||
| PM (TTM) | 5.12% | ||
| 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
- ZAL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- ZAL has about the same amout of shares outstanding than it did 1 year ago.
- ZAL has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ZAL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.00 indicates that ZAL is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.00, ZAL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- The Debt to FCF ratio of ZAL is 3.88, which is a good value as it means it would take ZAL, 3.88 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ZAL (3.88) is better than 66.67% of its industry peers.
- A Debt/Equity ratio of 1.86 is on the high side and indicates that ZAL has dependencies on debt financing.
- The Debt to Equity ratio of ZAL (1.86) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 3 |
ROIC/WACC1.68
WACC7.95%
2.3 Liquidity
- ZAL has a Current Ratio of 1.64. This is a normal value and indicates that ZAL is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of ZAL (1.64) is better than 86.11% of its industry peers.
- ZAL has a Quick Ratio of 1.64. This is a normal value and indicates that ZAL is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.64, ZAL belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 64.71% over the past year.
- ZAL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.55% yearly.
- Looking at the last year, ZAL shows a decrease in Revenue. The Revenue has decreased by -8.73% in the last year.
- The Revenue has been growing by 11.63% on average over the past years. This is quite good.
EPS 1Y (TTM)64.71%
EPS 3Y35.55%
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y20.2%
Revenue growth 5Y11.63%
Sales Q2Q%10.32%
3.2 Future
- Based on estimates for the next years, ZAL will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.99% on average per year.
- The Revenue is expected to grow by 9.40% on average over the next years. This is quite good.
EPS Next Y4.2%
EPS Next 2Y18.02%
EPS Next 3Y14.99%
EPS Next 5YN/A
Revenue Next Year12.6%
Revenue Next 2Y10.39%
Revenue Next 3Y9.4%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.49, which means the current valuation is very expensive for ZAL.
- ZAL's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of ZAL to the average of the S&P500 Index (27.21), we can say ZAL is valued inline with the index average.
- With a Price/Forward Earnings ratio of 12.86, ZAL is valued correctly.
- 72.22% of the companies in the same industry are more expensive than ZAL, based on the Price/Forward Earnings ratio.
- ZAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZAL is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
- ZAL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZAL is cheaper than 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.45 | ||
| EV/EBITDA | 11.14 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ZAL has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ZAL's earnings are expected to grow with 14.99% in the coming years.
PEG (NY)6.31
PEG (5Y)N/A
EPS Next 2Y18.02%
EPS Next 3Y14.99%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.02%, ZAL has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.39, ZAL has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, ZAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y18.02%
EPS Next 3Y14.99%
ZALARIS ASA / ZAL.OL FAQ
Can you provide the ChartMill fundamental rating for ZALARIS ASA?
ChartMill assigns a fundamental rating of 5 / 10 to ZAL.OL.
Can you provide the valuation status for ZALARIS ASA?
ChartMill assigns a valuation rating of 4 / 10 to ZALARIS ASA (ZAL.OL). This can be considered as Fairly Valued.
Can you provide the profitability details for ZALARIS ASA?
ZALARIS ASA (ZAL.OL) has a profitability rating of 6 / 10.
What is the valuation of ZALARIS ASA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ZALARIS ASA (ZAL.OL) is 26.49 and the Price/Book (PB) ratio is 7.27.
What is the financial health of ZALARIS ASA (ZAL.OL) stock?
The financial health rating of ZALARIS ASA (ZAL.OL) is 6 / 10.