ZENDESK INC (ZEN)
US98936J1016 - Common Stock
Taking everything into account, ZEN scores 3 out of 10 in our fundamental rating. ZEN was compared to 276 industry peers in the Software industry. ZEN may be in some trouble as it scores bad on both profitability and health. ZEN is valued quite expensively, but it does show have an excellent growth rating.
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 had negative earnings in each of the past 5 years.
Each year in the past 5 years ZEN had a positive operating cash flow.
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
2. Health
2.1 Basic Checks
ZEN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ZEN has been increased compared to 1 year ago.
Compared to 1 year ago, ZEN has an improved debt to assets ratio.
2.2 Solvency
ZEN has an Altman-Z score of 2.49. This is not the best score and indicates that ZEN is in the grey zone with still 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.
A Debt/Equity ratio of 3.28 is on the high side and indicates that ZEN has dependencies on debt 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 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.59% over the past year.
The Earnings Per Share has been growing by 37.95% on average over the past years. This is a very strong growth
Looking at the last year, ZEN shows a very strong growth in Revenue. The Revenue has grown by 27.36%.
ZEN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.74% yearly.
EPS 1Y (TTM)27.59%
EPS 3Y37.95%
EPS 5YN/A
EPS growth Q2Q88.24%
Revenue 1Y (TTM)27.36%
Revenue growth 3Y30.76%
Revenue growth 5Y33.74%
Revenue growth Q2Q20.14%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
ZEN is valuated quite expensively with a Price/Earnings ratio of 104.70.
The average S&P500 Price/Earnings ratio is at 28.28. ZEN is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 83.24, ZEN can be considered very expensive at the moment.
ZEN is valuated expensively when we compare the Price/Forward Earnings ratio to 20.88, 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 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%
5. Dividend
5.1 Amount
No dividends for ZEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZENDESK INC
NYSE:ZEN (11/21/2022, 7:14:42 PM)
After market: 77.47 -0.01 (-0.01%)77.48
+0.02 (+0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.7 | ||
| Fwd PE | 83.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.43% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | -11.94% | ||
| PM (TTM) | -17.82% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)27.59%
EPS 3Y37.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y19.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)27.36%
Revenue growth 3Y30.76%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y