ZOOMINFO TECHNOLOGIES INC (ZI) Stock Fundamental Analysis
NASDAQ:ZI - US98980F1049 - Common Stock
10.31 USD
+0.96 (+10.27%)
10.28 USD
-0.03 (-0.29%)
ZI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 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
In the past year ZI was profitable.
In the past year ZI had a positive cash flow from operations.
ZI had positive earnings in 4 of the past 5 years.
ZI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.45%, ZI is in line with its industry, outperforming 59.15% of the companies in the same industry.
The Return On Equity of ZI (1.72%) is better than 63.38% of its industry peers.
ZI has a Return On Invested Capital (1.01%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZI is significantly below the industry average of 12.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 1.72% | ||
| ROIC | 1.01% |
ROA(3y)0.97%
ROA(5y)0.79%
ROE(3y)3.19%
ROE(5y)2.49%
ROIC(3y)2.12%
ROIC(5y)1.92%
1.3 Margins
With a Profit Margin value of 2.40%, ZI perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
In the last couple of years the Profit Margin of ZI has declined.
ZI has a Operating Margin of 8.04%. This is in the better half of the industry: ZI outperforms 71.83% of its industry peers.
In the last couple of years the Operating Margin of ZI has remained more or less at the same level.
The Gross Margin of ZI (84.37%) is better than 78.87% of its industry peers.
In the last couple of years the Gross Margin of ZI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.04% | ||
| PM (TTM) | 2.4% | ||
| GM | 84.37% |
OM growth 3Y-7.24%
OM growth 5Y-1.45%
PM growth 3Y-46.48%
PM growth 5YN/A
GM growth 3Y1.23%
GM growth 5Y2.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZI is destroying value.
ZI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ZI has been reduced compared to 5 years ago.
The debt/assets ratio for ZI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that ZI is in the distress zone and has some risk of bankruptcy.
ZI has a Altman-Z score of 0.71. This is in the lower half of the industry: ZI underperforms 60.56% of its industry peers.
The Debt to FCF ratio of ZI is 4.03, which is a neutral value as it means it would take ZI, 4.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ZI (4.03) is comparable to the rest of the industry.
ZI has a Debt/Equity ratio of 0.72. This is a neutral value indicating ZI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, ZI is not doing good in the industry: 73.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.13
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.69 indicates that ZI may have some problems paying its short term obligations.
With a Current ratio value of 0.69, ZI is not doing good in the industry: 87.32% of the companies in the same industry are doing better.
ZI has a Quick Ratio of 0.69. This is a bad value and indicates that ZI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.69, ZI is doing worse than 85.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
ZI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.62%.
The Earnings Per Share has been growing by 18.70% on average over the past years. This is quite good.
Looking at the last year, ZI shows a decrease in Revenue. The Revenue has decreased by -2.03% in the last year.
ZI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.86% yearly.
EPS 1Y (TTM)-9.62%
EPS 3Y18.7%
EPS 5YN/A
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-2.03%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%-1.42%
3.2 Future
The Earnings Per Share is expected to grow by 6.33% on average over the next years.
Based on estimates for the next years, ZI will show a small growth in Revenue. The Revenue will grow by 4.58% on average per year.
EPS Next Y3.23%
EPS Next 2Y3.81%
EPS Next 3Y-0.24%
EPS Next 5Y6.33%
Revenue Next Year-0.24%
Revenue Next 2Y1.2%
Revenue Next 3Y2.06%
Revenue Next 5Y4.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 10.97 indicates a reasonable valuation of ZI.
78.87% of the companies in the same industry are more expensive than ZI, based on the Price/Earnings ratio.
ZI is valuated cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.86, the valuation of ZI can be described as very reasonable.
ZI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ZI is cheaper than 77.46% of the companies in the same industry.
ZI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
ZI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ZI is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | 24.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.39
PEG (5Y)N/A
EPS Next 2Y3.81%
EPS Next 3Y-0.24%
5. Dividend
5.1 Amount
No dividends for ZI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.31
+0.96 (+10.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.64%
Inst Owner Change-5.7%
Ins Owners6.43%
Ins Owner Change0.24%
Market Cap3.49B
Analysts55
Price Target11.27 (9.31%)
Short Float %N/A
Short RatioN/A
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)2
Avg EPS beat(2)18.21%
Min EPS beat(2)12.67%
Max EPS beat(2)23.75%
EPS beat(4)3
Avg EPS beat(4)3.59%
Min EPS beat(4)-29.75%
Max EPS beat(4)23.75%
EPS beat(8)7
Avg EPS beat(8)4.47%
EPS beat(12)11
Avg EPS beat(12)8.63%
EPS beat(16)15
Avg EPS beat(16)11.34%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.83%
Revenue beat(4)1
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-8.03%
Max Revenue beat(4)0.83%
Revenue beat(8)1
Avg Revenue beat(8)-2.63%
Revenue beat(12)4
Avg Revenue beat(12)-1.41%
Revenue beat(16)8
Avg Revenue beat(16)-0.14%
PT rev (1m)-8.78%
PT rev (3m)-2.6%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)1.44%
EPS NY rev (3m)8.54%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.86 | ||
| P/S | 2.87 | ||
| P/FCF | 11.46 | ||
| P/OCF | 9.45 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.97 |
EPS(TTM)0.94
EY9.12%
EPS(NY)1.05
Fwd EY10.14%
FCF(TTM)0.9
FCFY8.73%
OCF(TTM)1.09
OCFY10.59%
SpS3.59
BVpS5
TBVpS-0.81
PEG (NY)3.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 1.72% | ||
| ROCE | 1.68% | ||
| ROIC | 1.01% | ||
| ROICexc | 1.04% | ||
| ROICexgc | 1.59% | ||
| OM | 8.04% | ||
| PM (TTM) | 2.4% | ||
| GM | 84.37% | ||
| FCFM | 25.08% |
ROA(3y)0.97%
ROA(5y)0.79%
ROE(3y)3.19%
ROE(5y)2.49%
ROIC(3y)2.12%
ROIC(5y)1.92%
ROICexc(3y)2.27%
ROICexc(5y)2.09%
ROICexgc(3y)3.49%
ROICexgc(5y)4.68%
ROCE(3y)3.51%
ROCE(5y)3.19%
ROICexcg growth 3Y11.98%
ROICexcg growth 5YN/A
ROICexc growth 3Y11.22%
ROICexc growth 5Y-2.81%
OM growth 3Y-7.24%
OM growth 5Y-1.45%
PM growth 3Y-46.48%
PM growth 5YN/A
GM growth 3Y1.23%
GM growth 5Y2.11%
F-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.03 | ||
| Debt/EBITDA | 6.67 | ||
| Cap/Depr | 75.73% | ||
| Cap/Sales | 5.34% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 201.53% | ||
| Profit Quality | 1046.39% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.71 |
F-Score5
WACC8.07%
ROIC/WACC0.13
Cap/Depr(3y)47.17%
Cap/Depr(5y)41.73%
Cap/Sales(3y)3.37%
Cap/Sales(5y)3.36%
Profit Quality(3y)680.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.62%
EPS 3Y18.7%
EPS 5YN/A
EPS Q2Q%-11.54%
EPS Next Y3.23%
EPS Next 2Y3.81%
EPS Next 3Y-0.24%
EPS Next 5Y6.33%
Revenue 1Y (TTM)-2.03%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%-1.42%
Revenue Next Year-0.24%
Revenue Next 2Y1.2%
Revenue Next 3Y2.06%
Revenue Next 5Y4.58%
EBIT growth 1Y-63.83%
EBIT growth 3Y9.06%
EBIT growth 5Y30.94%
EBIT Next Year15.26%
EBIT Next 3Y10.71%
EBIT Next 5Y10.56%
FCF growth 1Y-25.44%
FCF growth 3Y3.35%
FCF growth 5Y58.13%
OCF growth 1Y-15.06%
OCF growth 3Y7.25%
OCF growth 5Y52.76%