We assign a fundamental rating of 3 out of 10 to ZEN. ZEN was compared to 277 industry peers in the Software industry. Both the profitability and financial health of ZEN have multiple concerns. ZEN is valued quite expensive, but it does show an excellent growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ZEN was profitable.
ZEN had a positive operating cash flow in the past year.

1.2 Ratios

		Industry Rank	Sector Rank
ROA	-11.43%
ROE	N/A
ROIC	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

		Industry Rank	Sector Rank
OM	-11.94%
PM (TTM)	-17.82%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

ZEN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ZEN has more shares outstanding
The debt/assets ratio for ZEN has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.49 indicates that ZEN is not a great score, but indicates only limited risk for bankruptcy at the moment.
ZEN has a debt to FCF ratio of 13.52. This is a negative value and a sign of low solvency as ZEN would need 13.52 years to pay back of all of its debts.
ZEN has a Debt/Equity ratio of 3.28. This is a high value indicating a heavy dependency on external financing.

		Industry Rank	Sector Rank
Debt/Equity	3.28
Debt/FCF	13.52
Altman-Z	2.49

ROIC/WACCN/A

WACC10.26%

2.3 Liquidity

A Current Ratio of 1.83 indicates that ZEN should not have too much problems paying its short term obligations.
ZEN has a Quick Ratio of 1.83. This is a normal value and indicates that ZEN is financially healthy and should not expect problems in meeting its short term obligations.

		Industry Rank	Sector Rank
Current Ratio	1.83
Quick Ratio	1.83

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

ZEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.59%, which is quite impressive.
The Earnings Per Share has been growing by 37.95% on average over the past years. This is a very strong growth
The Revenue has grown by 27.36% in the past year. This is a very strong growth!
Measured over the past years, ZEN shows a very strong growth in Revenue. The Revenue has been growing by 33.74% on average per year.

EPS 1Y (TTM)27.59%

EPS 3Y37.95%

EPS 5YN/A

EPS Q2Q%88.24%

Revenue 1Y (TTM)27.36%

Revenue growth 3Y30.76%

Revenue growth 5Y33.74%

Sales Q2Q%20.14%

3.2 Future

ZEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.24% yearly.
Based on estimates for the next years, ZEN will show a quite strong growth in Revenue. The Revenue will grow by 15.27% on average per year.

EPS Next Y19.22%

EPS Next 2Y21.55%

EPS Next 3Y33.11%

EPS Next 5Y36.24%

Revenue Next Year24.81%

Revenue Next 2Y20.95%

Revenue Next 3Y19.62%

Revenue Next 5Y15.27%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 104.70, which means the current valuation is very expensive for ZEN.
Compared to an average S&P500 Price/Earnings ratio of 27.32, ZEN is valued quite expensively.
A Price/Forward Earnings ratio of 83.24 indicates a quite expensive valuation of ZEN.
ZEN is valuated expensively when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	104.7
Fwd PE	83.24

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	91.29
EV/EBITDA	-50.13

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ZEN's earnings are expected to grow with 33.11% in the coming years. This may justify a more expensive valuation.