ZEDGE INC-CL B (ZDGE) Stock Fundamental Analysis
NYSEARCA:ZDGE - NYSE Arca - US98923T1043 - Common Stock - Currency: USD
Taking everything into account, ZDGE scores 4 out of 10 in our fundamental rating. ZDGE was compared to 70 industry peers in the Interactive Media & Services industry. No worries on liquidiy or solvency for ZDGE as it has an excellent financial health rating, but there are worries on the profitability. While showing a medium growth rate, ZDGE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ZDGE was profitable.
ZDGE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ZDGE reported negative net income in multiple years.
ZDGE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZDGE has a Return On Assets of -4.95%. This is in the lower half of the industry: ZDGE underperforms 60.00% of its industry peers.
With a Return On Equity value of -6.54%, ZDGE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.95% | ||
| ROE | -6.54% | ||
| ROIC | N/A |
ROA(3y)-6.42%
ROA(5y)-0.38%
ROE(3y)-7.8%
ROE(5y)-0.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of ZDGE has declined.
ZDGE's Gross Margin of 93.83% is amongst the best of the industry. ZDGE outperforms 95.71% of its industry peers.
ZDGE's Gross Margin has improved in the last couple of years.
ZDGE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 93.83% |
OM growth 3Y-76.64%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.03%
GM growth 5Y2.15%
2. Health
2.1 Basic Checks
ZDGE does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ZDGE remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ZDGE has more shares outstanding
ZDGE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ZDGE has an Altman-Z score of 4.66. This indicates that ZDGE is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.66, ZDGE is doing good in the industry, outperforming 75.71% of the companies in the same industry.
There is no outstanding debt for ZDGE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.66 |
ROIC/WACCN/A
WACC9.46%
2.3 Liquidity
ZDGE has a Current Ratio of 3.39. This indicates that ZDGE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.39, ZDGE is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
ZDGE has a Quick Ratio of 3.39. This indicates that ZDGE is financially healthy and has no problem in meeting its short term obligations.
ZDGE has a better Quick ratio (3.39) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 3.39 |
3. Growth
3.1 Past
The earnings per share for ZDGE have decreased by 0.00% in the last year.
ZDGE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -47.41% yearly.
Looking at the last year, ZDGE shows a small growth in Revenue. The Revenue has grown by 1.27% in the last year.
The Revenue has been growing by 27.83% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)0%
EPS 3Y-47.41%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y15.42%
Revenue growth 5Y27.83%
Sales Q2Q%1.29%
3.2 Future
Based on estimates for the next years, ZDGE will show a very strong growth in Earnings Per Share. The EPS will grow by 31.90% on average per year.
Based on estimates for the next years, ZDGE will show a decrease in Revenue. The Revenue will decrease by -1.39% on average per year.
EPS Next Y-36.25%
EPS Next 2Y18.43%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue Next Year-9.4%
Revenue Next 2Y-4.31%
Revenue Next 3Y-1.39%
Revenue Next 5YN/A
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.
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
ZDGE is valuated quite expensively with a Price/Earnings ratio of 67.14.
The rest of the industry has a similar Price/Earnings ratio as ZDGE.
Compared to an average S&P500 Price/Earnings ratio of 27.46, ZDGE is valued quite expensively.
With a Price/Forward Earnings ratio of 41.89, ZDGE can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as ZDGE.
ZDGE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.14 | ||
| Fwd PE | 41.89 |
4.2 Price Multiples
ZDGE's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ZDGE is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.1 | ||
| EV/EBITDA | 71.32 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ZDGE's earnings are expected to grow with 31.90% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.43%
EPS Next 3Y31.9%
5. Dividend
5.1 Amount
No dividends for ZDGE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.7
+0.26 (+5.86%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners14.74%
Inst Owner Change3.39%
Ins Owners16.24%
Ins Owner Change-4.4%
Market Cap64.06M
Analysts82.86
Price Target5.1 (8.51%)
Short Float %0.98%
Short Ratio0.53
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)1
Avg EPS beat(2)34.8%
Min EPS beat(2)-124.51%
Max EPS beat(2)194.12%
EPS beat(4)1
Avg EPS beat(4)-20.34%
Min EPS beat(4)-124.51%
Max EPS beat(4)194.12%
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)1
Avg Revenue beat(2)0.77%
Min Revenue beat(2)-11.3%
Max Revenue beat(2)12.85%
Revenue beat(4)1
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-11.3%
Max Revenue beat(4)12.85%
Revenue beat(8)5
Avg Revenue beat(8)0.86%
Revenue beat(12)7
Avg Revenue beat(12)1.2%
Revenue beat(16)10
Avg Revenue beat(16)3%
PT rev (1m)0%
PT rev (3m)42.86%
EPS NQ rev (1m)50%
EPS NQ rev (3m)50%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.03%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.14 | ||
| Fwd PE | 41.89 | ||
| P/S | 2.17 | ||
| P/FCF | 22.1 | ||
| P/OCF | 18.61 | ||
| P/B | 2.24 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 71.32 |
EPS(TTM)0.07
EY1.49%
EPS(NY)0.11
Fwd EY2.39%
FCF(TTM)0.21
FCFY4.53%
OCF(TTM)0.25
OCFY5.37%
SpS2.17
BVpS2.1
TBVpS1.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.95% | ||
| ROE | -6.54% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 93.83% | ||
| FCFM | 9.82% |
ROA(3y)-6.42%
ROA(5y)-0.38%
ROE(3y)-7.8%
ROE(5y)-0.96%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-76.64%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.03%
GM growth 5Y2.15%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 43.24% | ||
| Cap/Sales | 1.84% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 612.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.39 | ||
| Quick Ratio | 3.39 | ||
| Altman-Z | 4.66 |
F-Score7
WACC9.46%
ROIC/WACCN/A
Cap/Depr(3y)66.82%
Cap/Depr(5y)60.13%
Cap/Sales(3y)6.21%
Cap/Sales(5y)5.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-47.41%
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y-36.25%
EPS Next 2Y18.43%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue 1Y (TTM)1.27%
Revenue growth 3Y15.42%
Revenue growth 5Y27.83%
Sales Q2Q%1.29%
Revenue Next Year-9.4%
Revenue Next 2Y-4.31%
Revenue Next 3Y-1.39%
Revenue Next 5YN/A
EBIT growth 1Y-250.98%
EBIT growth 3Y-73.03%
EBIT growth 5YN/A
EBIT Next Year109.3%
EBIT Next 3Y32.16%
EBIT Next 5YN/A
FCF growth 1Y346.69%
FCF growth 3Y-21.09%
FCF growth 5YN/A
OCF growth 1Y17.87%
OCF growth 3Y-16.72%
OCF growth 5Y138.38%