ZETA GLOBAL HOLDINGS CORP-A (ZETA) Stock Fundamental Analysis
NYSE:ZETA - New York Stock Exchange, Inc. - US98956A1051 - Common Stock - Currency: USD
Overall ZETA gets a fundamental rating of 5 out of 10. We evaluated ZETA against 283 industry peers in the Software industry. No worries on liquidiy or solvency for ZETA as it has an excellent financial health rating, but there are worries on the profitability. ZETA is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
ZETA had positive earnings in the past year.
ZETA had a positive operating cash flow in the past year.
ZETA had negative earnings in each of the past 5 years.
Each year in the past 5 years ZETA had a positive operating cash flow.
1.2 Ratios
ZETA's Return On Assets of -4.76% is in line compared to the rest of the industry. ZETA outperforms 48.76% of its industry peers.
ZETA has a Return On Equity (-7.66%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -7.66% | ||
| ROIC | N/A |
ROA(3y)-33.39%
ROA(5y)-38.04%
ROE(3y)-110.76%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 60.36%, ZETA is in line with its industry, outperforming 41.70% of the companies in the same industry.
ZETA's Gross Margin has been stable in the last couple of years.
ZETA does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 60.36% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.87%
GM growth 5Y-1.17%
2. Health
2.1 Basic Checks
ZETA does not have a ROIC to compare to the WACC, probably because it is not profitable.
ZETA has more shares outstanding than it did 1 year ago.
ZETA has more shares outstanding than it did 5 years ago.
ZETA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.49 indicates that ZETA is not in any danger for bankruptcy at the moment.
The Altman-Z score of ZETA (4.49) is better than 68.55% of its industry peers.
ZETA has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
ZETA's Debt to FCF ratio of 1.88 is fine compared to the rest of the industry. ZETA outperforms 67.49% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that ZETA is not too dependend on debt financing.
ZETA has a Debt to Equity ratio (0.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 4.49 |
ROIC/WACCN/A
WACC10.89%
2.3 Liquidity
A Current Ratio of 3.33 indicates that ZETA has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.33, ZETA is doing good in the industry, outperforming 78.80% of the companies in the same industry.
A Quick Ratio of 3.33 indicates that ZETA has no problem at all paying its short term obligations.
ZETA's Quick ratio of 3.33 is fine compared to the rest of the industry. ZETA outperforms 78.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 3.33 |
3. Growth
3.1 Past
ZETA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.78%, which is quite impressive.
ZETA shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.36%.
ZETA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.86% yearly.
EPS 1Y (TTM)83.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%57.14%
Revenue 1Y (TTM)40.36%
Revenue growth 3Y29.95%
Revenue growth 5Y26.86%
Sales Q2Q%35.64%
3.2 Future
The Earnings Per Share is expected to grow by 26.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, ZETA will show a quite strong growth in Revenue. The Revenue will grow by 17.07% on average per year.
EPS Next Y5.64%
EPS Next 2Y17.98%
EPS Next 3Y17.71%
EPS Next 5Y26.72%
Revenue Next Year25.62%
Revenue Next 2Y21.4%
Revenue Next 3Y20.46%
Revenue Next 5Y17.07%
3.3 Evolution
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
ZETA is valuated rather expensively with a Price/Earnings ratio of 19.25.
Compared to the rest of the industry, the Price/Earnings ratio of ZETA indicates a somewhat cheap valuation: ZETA is cheaper than 78.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, ZETA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.69, the valuation of ZETA can be described as correct.
ZETA's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZETA is cheaper than 83.39% of the companies in the same industry.
ZETA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.25 | ||
| Fwd PE | 14.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZETA is on the same level as its industry peers.
ZETA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZETA is cheaper than 72.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.42 | ||
| EV/EBITDA | 125.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ZETA's earnings are expected to grow with 17.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.41
PEG (5Y)N/A
EPS Next 2Y17.98%
EPS Next 3Y17.71%
5. Dividend
5.1 Amount
ZETA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.09
-0.18 (-1.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners66.26%
Inst Owner Change3.02%
Ins Owners8.73%
Ins Owner Change-6.06%
Market Cap3.08B
Analysts81
Price Target26.27 (100.69%)
Short Float %11.69%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.94%
Min EPS beat(2)-5.04%
Max EPS beat(2)8.93%
EPS beat(4)3
Avg EPS beat(4)8.86%
Min EPS beat(4)-5.04%
Max EPS beat(4)22.13%
EPS beat(8)4
Avg EPS beat(8)3.35%
EPS beat(12)7
Avg EPS beat(12)78.7%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.14%
Min Revenue beat(2)1.99%
Max Revenue beat(2)4.3%
Revenue beat(4)4
Avg Revenue beat(4)3.9%
Min Revenue beat(4)1.99%
Max Revenue beat(4)5.15%
Revenue beat(8)7
Avg Revenue beat(8)3.1%
Revenue beat(12)11
Avg Revenue beat(12)3.66%
Revenue beat(16)15
Avg Revenue beat(16)3.98%
PT rev (1m)-25.94%
PT rev (3m)-31.07%
EPS NQ rev (1m)-7.88%
EPS NQ rev (3m)-15.02%
EPS NY rev (1m)-12.62%
EPS NY rev (3m)-15.71%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)2.9%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.25 | ||
| Fwd PE | 14.69 | ||
| P/S | 2.87 | ||
| P/FCF | 29.42 | ||
| P/OCF | 21.41 | ||
| P/B | 4.56 | ||
| P/tB | 14.24 | ||
| EV/EBITDA | 125.27 |
EPS(TTM)0.68
EY5.19%
EPS(NY)0.89
Fwd EY6.81%
FCF(TTM)0.44
FCFY3.4%
OCF(TTM)0.61
OCFY4.67%
SpS4.56
BVpS2.87
TBVpS0.92
PEG (NY)3.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -7.66% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 60.36% | ||
| FCFM | 9.75% |
ROA(3y)-33.39%
ROA(5y)-38.04%
ROE(3y)-110.76%
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
ROICexcg growth 3YN/A
ROICexcg 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 3Y-0.87%
GM growth 5Y-1.17%
F-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.88 | ||
| Debt/EBITDA | 8.44 | ||
| Cap/Depr | 65.29% | ||
| Cap/Sales | 3.65% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 618.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 3.33 | ||
| Altman-Z | 4.49 |
F-Score5
WACC10.89%
ROIC/WACCN/A
Cap/Depr(3y)79.39%
Cap/Depr(5y)80.62%
Cap/Sales(3y)5.76%
Cap/Sales(5y)6.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)83.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%57.14%
EPS Next Y5.64%
EPS Next 2Y17.98%
EPS Next 3Y17.71%
EPS Next 5Y26.72%
Revenue 1Y (TTM)40.36%
Revenue growth 3Y29.95%
Revenue growth 5Y26.86%
Sales Q2Q%35.64%
Revenue Next Year25.62%
Revenue Next 2Y21.4%
Revenue Next 3Y20.46%
Revenue Next 5Y17.07%
EBIT growth 1Y75.2%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year91.76%
EBIT Next 3Y43.27%
EBIT Next 5Y33.72%
FCF growth 1Y347.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y86.02%
OCF growth 3Y44.58%
OCF growth 5Y34.33%