ZENDESK INC (ZEN) Fundamental Analysis & Valuation

NYSE:ZEN • US98936J1016

Current stock price

77.48 USD
+0.02 (+0.03%)
At close:
77.47 USD
-0.01 (-0.01%)
After Hours:

This ZEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

1

1. ZEN Profitability Analysis

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 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 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 2016 2017 2018 2019 2020 2021 0 20 -20 40 60

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2

2. ZEN Health Analysis

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
  • ZEN has a better debt/assets ratio than last year.
ZEN Yearly Shares OutstandingZEN Yearly Shares OutstandingYearly Shares Outstanding 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 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.
  • The Debt to FCF ratio of ZEN is 13.52, which is on the high side as it means it would take ZEN, 13.52 years of fcf income to pay off 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 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 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.
  • A Quick Ratio of 1.83 indicates that ZEN should not have too much problems paying 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 2016 2017 2018 2019 2020 2021 500M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

3. ZEN Growth Analysis

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!
  • 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

  • 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.
ZEN Yearly Revenue VS EstimatesZEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 2

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1

4. ZEN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 104.70, the valuation of ZEN can be described as expensive.
  • When comparing the Price/Earnings ratio of ZEN to the average of the S&P500 Index (25.61), we can say ZEN is valued expensively.
  • Based on the Price/Forward Earnings ratio of 83.24, the valuation of ZEN can be described as expensive.
  • ZEN is valuated expensively when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ZEN Dividend Analysis

5.1 Amount

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

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ZEN Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)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 Fundamental Analysis 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 of ZENDESK INC (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 are the PE and PB ratios of ZENDESK INC (ZEN) stock?

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