ZENDESK INC (ZEN) Stock Fundamental Analysis

NYSE:ZEN • US98936J1016

77.48 USD
+0.02 (+0.03%)
At close: Nov 21, 2022
77.47 USD
-0.01 (-0.01%)
After Hours: 11/21/2022, 8:14:42 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

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 has a bad profitability rating. Also its financial health evaluation is rather negative. ZEN is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

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

3.1 Past

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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • 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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Find the best growth stocksShow best growing peers

1

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 104.70 indicates a quite expensive valuation of ZEN.
  • When comparing the Price/Earnings ratio of ZEN to the average of the S&P500 Index (27.19), we can say ZEN is valued expensively.
  • With a Price/Forward Earnings ratio of 83.24, ZEN can be considered very expensive at the moment.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. ZEN is valued rather expensively when compared to this.
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.
  • A more expensive valuation may be justified as ZEN's earnings are expected to grow with 33.11% in the coming years.
PEG (NY)5.45
PEG (5Y)N/A
EPS Next 2Y21.55%
EPS Next 3Y33.11%

More info and screens

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

0

5. Dividend

5.1 Amount

  • ZEN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

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 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.