Logo image of ZEN

ZENDESK INC (ZEN) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:ZEN - US98936J1016 - Common Stock

77.48 USD
+0.02 (+0.03%)
Last: 11/21/2022, 8:14:42 PM
77.47 USD
-0.01 (-0.01%)
After Hours: 11/21/2022, 8:14:42 PM
Fundamental Rating

3

ZEN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 280 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.


Dividend Valuation Growth Profitability Health

Quickly go to:

1

1. Profitability

1.1 Basic Checks

ZEN had positive earnings in the past year.
In the past year ZEN had a positive cash flow from operations.
ZEN Yearly Net Income VS EBIT VS OCF VS FCFZEN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 100M -100M -200M

1.2 Ratios

Industry RankSector 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
ZEN Yearly ROA, ROE, ROICZEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 -10 -20 -30 -40 -50

1.3 Margins

Industry RankSector 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
ZEN Yearly Profit, Operating, Gross MarginsZEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 20 -20 40 -40 60

More info and screens

2

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
Compared to 1 year ago, ZEN has an improved debt to assets ratio.
ZEN Yearly Shares OutstandingZEN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M 100M
ZEN Yearly Total Debt VS Total AssetsZEN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B

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.
A Debt/Equity ratio of 3.28 is on the high side and indicates that ZEN has dependencies on debt financing.
Industry RankSector Rank
Debt/Equity 3.28
Debt/FCF 13.52
Altman-Z 2.49
ROIC/WACCN/A
WACC10.26%
ZEN Yearly LT Debt VS Equity VS FCFZEN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 200M 400M 600M 800M

2.3 Liquidity

ZEN has a Current 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.
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 RankSector Rank
Current Ratio 1.83
Quick Ratio 1.83
ZEN Yearly Current Assets VS Current LiabilitesZEN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 500M 1B

More info and screens

9

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

Based on estimates for the next years, ZEN will show a very strong growth in Earnings Per Share. The EPS will grow by 36.24% on average per year.
ZEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.27% yearly.
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.
ZEN Yearly Revenue VS EstimatesZEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B 2.5B
ZEN Yearly EPS VS EstimatesZEN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 2

More info and screens

1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 104.70, ZEN can be considered very expensive at the moment.
The average S&P500 Price/Earnings ratio is at 25.47. ZEN is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 83.24, the valuation of ZEN can be described as expensive.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.42, ZEN is valued quite expensively.
Industry RankSector Rank
PE 104.7
Fwd PE 83.24
ZEN Price Earnings VS Forward Price EarningsZEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Industry RankSector Rank
P/FCF 91.29
EV/EBITDA -50.13
ZEN Per share dataZEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZEN does not grow enough to justify the current Price/Earnings ratio.
ZEN's earnings are expected to grow with 33.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.45
PEG (5Y)N/A
EPS Next 2Y21.55%
EPS Next 3Y33.11%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for ZEN!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

ZENDESK INC

NYSE:ZEN (11/21/2022, 8:14:42 PM)

After market: 77.47 -0.01 (-0.01%)

77.48

+0.02 (+0.03%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-27 2022-10-27/amc
Earnings (Next)02-08 2023-02-08
Inst Owners0%
Inst Owner Change0%
Ins Owners0.5%
Ins Owner Change0%
Market Cap8.69B
Revenue(TTM)1.59B
Net Income(TTM)-282.98M
Analysts65.26
Price Target95.06 (22.69%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.98%
Min EPS beat(2)13.37%
Max EPS beat(2)42.59%
EPS beat(4)2
Avg EPS beat(4)6.12%
Min EPS beat(4)-18.13%
Max EPS beat(4)42.59%
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)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)0.49%
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)N/A
EPS NQ rev (1m)-5.32%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-1.55%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 104.7
Fwd PE 83.24
P/S 5.47
P/FCF 91.29
P/OCF 69.17
P/B 25.06
P/tB 61.9
EV/EBITDA -50.13
EPS(TTM)0.74
EY0.96%
EPS(NY)0.93
Fwd EY1.2%
FCF(TTM)0.85
FCFY1.1%
OCF(TTM)1.12
OCFY1.45%
SpS14.15
BVpS3.09
TBVpS1.25
PEG (NY)5.45
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -11.43%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM -11.94%
PM (TTM) -17.82%
GM N/A
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score5
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 3.28
Debt/FCF 13.52
Debt/EBITDA N/A
Cap/Depr 79.32%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.83
Quick Ratio 1.83
Altman-Z 2.49
F-Score5
WACC10.26%
ROIC/WACCN/A
Cap/Depr(3y)96.73%
Cap/Depr(5y)96.2%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.59%
EPS 3Y37.95%
EPS 5YN/A
EPS Q2Q%88.24%
EPS Next Y19.22%
EPS Next 2Y21.55%
EPS Next 3Y33.11%
EPS Next 5Y36.24%
Revenue 1Y (TTM)27.36%
Revenue growth 3Y30.76%
Revenue growth 5Y33.74%
Sales Q2Q%20.14%
Revenue Next Year24.81%
Revenue Next 2Y20.95%
Revenue Next 3Y19.62%
Revenue Next 5Y15.27%
EBIT growth 1Y-22.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year69.87%
EBIT Next 3Y51.4%
EBIT Next 5Y39.49%
FCF growth 1Y376.36%
FCF growth 3Y57.09%
FCF growth 5YN/A
OCF growth 1Y923.24%
OCF growth 3Y29.25%
OCF growth 5Y47.21%

ZENDESK INC / ZEN FAQ

Can you provide the ChartMill fundamental rating for ZENDESK INC?

ChartMill assigns a fundamental rating of 4 / 10 to ZEN.


What is the valuation status for ZEN stock?

ChartMill assigns a valuation rating of 0 / 10 to ZENDESK INC (ZEN). This can be considered as Overvalued.


Can you provide the profitability details for ZENDESK INC?

ZENDESK INC (ZEN) has a profitability rating of 3 / 10.


What is the valuation of ZENDESK INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ZENDESK INC (ZEN) is 104.7 and the Price/Book (PB) ratio is 25.06.


What is the expected EPS growth for ZENDESK INC (ZEN) stock?

The Earnings per Share (EPS) of ZENDESK INC (ZEN) is expected to grow by 19.22% in the next year.