ZALARIS ASA (ZAL.OL) Stock Fundamental Analysis
OSL:ZAL - Euronext Oslo - NO0010708910 - Common Stock - Currency: NOK
ZAL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Professional Services industry. ZAL has an average financial health and profitability rating. ZAL is growing strongly while it is still valued neutral. This is a good combination! With these ratings, ZAL could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year ZAL was profitable.
In the past year ZAL had a positive cash flow from operations.
In multiple years ZAL reported negative net income over the last 5 years.
ZAL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ZAL (4.90%) is better than 62.50% of its industry peers.
ZAL has a Return On Equity of 23.85%. This is in the better half of the industry: ZAL outperforms 78.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.49%, ZAL is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZAL is below the industry average of 11.33%.
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
ZAL's Profit Margin of 3.85% is fine compared to the rest of the industry. ZAL outperforms 62.50% of its industry peers.
ZAL's Profit Margin has improved in the last couple of years.
ZAL has a Operating Margin of 8.44%. This is in the better half of the industry: ZAL outperforms 62.50% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ZAL is still creating some value.
Compared to 1 year ago, ZAL has about the same amount of shares outstanding.
The number of shares outstanding for ZAL has been increased compared to 5 years ago.
ZAL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.05 indicates that ZAL is not in any danger for bankruptcy at the moment.
ZAL has a better Altman-Z score (3.05) than 62.50% of its industry peers.
The Debt to FCF ratio of ZAL is 4.34, which is a neutral value as it means it would take ZAL, 4.34 years of fcf income to pay off 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 53.13% of its industry peers.
ZAL has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
ZAL has a worse Debt to Equity ratio (1.77) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.58
WACC7.89%
2.3 Liquidity
ZAL has a Current 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 has a better Current ratio (1.60) than 90.63% 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 has a better Quick ratio (1.60) than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 119.98% over the past year.
The Earnings Per Share has been growing by 35.55% on average over the past years. This is a very strong growth
ZAL shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.37%.
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.
The Revenue is expected to grow by 9.24% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 28.18, the valuation of ZAL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ZAL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.91. ZAL is around the same levels.
With a Price/Forward Earnings ratio of 13.08, ZAL is valued correctly.
Based on the Price/Forward Earnings ratio, ZAL is valued a bit cheaper than 68.75% of the companies in the same industry.
ZAL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
ZAL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZAL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.06 | ||
| EV/EBITDA | 10.14 |
4.3 Compensation for Growth
ZAL has a very decent profitability rating, which 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 1.08%.
Compared to an average industry Dividend Yield of 2.98, 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 | 1.08% |
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 (5/23/2025, 7:00:00 PM)
82
+0.2 (+0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners43.2%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.82B
Analysts80
Price Target99.45 (21.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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)0%
PT rev (3m)18.9%
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)0.46%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 13.08 | ||
| P/S | 1.06 | ||
| P/FCF | 15.06 | ||
| P/OCF | 12.45 | ||
| P/B | 6.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.14 |
EPS(TTM)2.91
EY3.55%
EPS(NY)6.27
Fwd EY7.64%
FCF(TTM)5.44
FCFY6.64%
OCF(TTM)6.59
OCFY8.03%
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 | 3.05 |
F-Score8
WACC7.89%
ROIC/WACC1.58
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%