ZOOMINFO TECHNOLOGIES INC (ZI) Stock Fundamental Analysis
NASDAQ:ZI - Nasdaq - US98980F1049 - Common Stock - Currency: USD
ZI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 70 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ZI had positive earnings in the past year.
In the past year ZI had a positive cash flow from operations.
Of the past 5 years ZI 4 years were profitable.
ZI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ZI (0.45%) is comparable to the rest of the industry.
ZI has a Return On Equity of 1.72%. This is in the better half of the industry: ZI outperforms 63.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.01%, ZI is in line with its industry, outperforming 56.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZI is significantly below the industry average of 11.90%.
| 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.
ZI has a better Gross Margin (84.37%) than 78.87% of its industry peers.
ZI's Gross Margin has improved in the last couple of years.
| 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
ZI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ZI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ZI has less shares outstanding
The debt/assets ratio for ZI is higher compared to a year ago.
2.2 Solvency
ZI has an Altman-Z score of 0.71. This is a bad value and indicates that ZI is not financially healthy and even has some risk of bankruptcy.
ZI's Altman-Z score of 0.71 is on the low side compared to the rest of the industry. ZI is outperformed by 60.56% of its industry peers.
ZI has a debt to FCF ratio of 4.03. This is a neutral value as ZI would need 4.03 years to pay back of all of its debts.
ZI has a Debt to FCF ratio (4.03) which is in line with its industry peers.
ZI has a Debt/Equity ratio of 0.72. This is a neutral value indicating ZI is somewhat dependend on debt financing.
The Debt to Equity ratio of ZI (0.72) is worse than 73.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.13
WACC8.07%
2.3 Liquidity
ZI has a Current 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.
ZI has a Current ratio of 0.69. This is amonst the worse of the industry: ZI underperforms 87.32% of its industry peers.
A Quick Ratio of 0.69 indicates that ZI may have some problems paying 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.
The Revenue has decreased by -2.03% in the past 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
ZI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.33% yearly.
ZI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.58% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.97, which indicates a very decent valuation of ZI.
Based on the Price/Earnings ratio, ZI is valued a bit cheaper than 78.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of ZI to the average of the S&P500 Index (26.82), we can say ZI is valued rather cheaply.
ZI is valuated reasonably with a Price/Forward Earnings ratio of 9.86.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZI indicates a somewhat cheap valuation: ZI is cheaper than 77.46% of the companies listed 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 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ZI is valued a bit cheaper than 73.24% of the companies in the same industry.
| 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 ZI does not grow enough to justify the current Price/Earnings ratio.
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 Change0.15%
Ins Owners6.43%
Ins Owner Change-0.34%
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%