ZOOMINFO TECHNOLOGIES INC (ZI)
US98980F1049 - Common Stock
We assign a fundamental rating of 5 out of 10 to ZI. ZI was compared to 68 industry peers in the Interactive Media & Services industry. While ZI is still in line with the averages on profitability rating, there are concerns on its financial health. ZI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ZI had positive earnings in the past year.
ZI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ZI reported negative net income in multiple years.
Each year in the past 5 years ZI had a positive operating cash flow.
1.2 Ratios
ZI has a Return On Assets of 1.56%. This is in the better half of the industry: ZI outperforms 65.67% of its industry peers.
ZI has a better Return On Equity (5.06%) than 71.64% of its industry peers.
With a decent Return On Invested Capital value of 3.42%, ZI is doing good in the industry, outperforming 68.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ZI is significantly below the industry average of 9.68%.
The 3 year average ROIC (2.51%) for ZI is below the current ROIC(3.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 5.06% | ||
| ROIC | 3.42% |
ROA(3y)1.38%
ROA(5y)-0.3%
ROE(3y)4.56%
ROE(5y)N/A
ROIC(3y)2.51%
ROIC(5y)2.6%
1.3 Margins
The Profit Margin of ZI (8.66%) is better than 76.12% of its industry peers.
With an excellent Operating Margin value of 21.77%, ZI belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.
In the last couple of years the Operating Margin of ZI has remained more or less at the same level.
With a decent Gross Margin value of 85.63%, ZI is doing good in the industry, outperforming 79.10% of the companies in the same industry.
ZI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.77% | ||
| PM (TTM) | 8.66% | ||
| GM | 85.63% |
OM growth 3Y19.99%
OM growth 5Y0.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.38%
GM growth 5Y3.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZI is destroying value.
ZI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ZI has been increased compared to 5 years ago.
Compared to 1 year ago, ZI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.18, we must say that ZI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ZI (1.18) is comparable to the rest of the industry.
The Debt to FCF ratio of ZI is 3.02, which is a good value as it means it would take ZI, 3.02 years of fcf income to pay off all of its debts.
ZI has a Debt to FCF ratio of 3.02. This is in the better half of the industry: ZI outperforms 74.63% of its industry peers.
ZI has a Debt/Equity ratio of 0.58. This is a neutral value indicating ZI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, ZI is doing worse than 76.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.41
WACC8.3%
2.3 Liquidity
A Current Ratio of 1.35 indicates that ZI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.35, ZI is not doing good in the industry: 71.64% of the companies in the same industry are doing better.
A Quick Ratio of 1.35 indicates that ZI should not have too much problems paying its short term obligations.
ZI's Quick ratio of 1.35 is on the low side compared to the rest of the industry. ZI is outperformed by 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.61% over the past year.
The Revenue has grown by 12.89% in the past year. This is quite good.
ZI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 53.74% yearly.
EPS 1Y (TTM)14.61%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q0%
Revenue 1Y (TTM)12.89%
Revenue growth 3Y37.56%
Revenue growth 5Y53.74%
Revenue growth Q2Q4.91%
3.2 Future
ZI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.78% yearly.
Based on estimates for the next years, ZI will show a quite strong growth in Revenue. The Revenue will grow by 9.00% on average per year.
EPS Next Y2.79%
EPS Next 2Y5.86%
EPS Next 3Y8.78%
EPS Next 5YN/A
Revenue Next Year3.07%
Revenue Next 2Y5.92%
Revenue Next 3Y7.34%
Revenue Next 5Y9%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.80 indicates a correct valuation of ZI.
Based on the Price/Earnings ratio, ZI is valued cheaply inside the industry as 82.09% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.73, ZI is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.68 indicates a correct valuation of ZI.
74.63% of the companies in the same industry are more expensive than ZI, based on the Price/Forward Earnings ratio.
ZI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZI is valued a bit cheaper than the industry average as 65.67% of the companies are valued more expensively.
80.60% of the companies in the same industry are more expensive than ZI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.91 | ||
| EV/EBITDA | 19.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZI does not grow enough to justify the current Price/Earnings ratio.
ZI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.66
PEG (5Y)N/A
EPS Next 2Y5.86%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
ZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZOOMINFO TECHNOLOGIES INC
NASDAQ:ZI (5/3/2024, 7:28:00 PM)
After market: 16.31 +0.19 (+1.18%)16.12
-0.36 (-2.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.09B
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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 15.68 | ||
| 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)5.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 5.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.77% | ||
| PM (TTM) | 8.66% | ||
| GM | 85.63% | ||
| 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 Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| 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)14.61%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y2.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.89%
Revenue growth 3Y37.56%
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