Overall ZNGA gets a fundamental rating of 2 out of 10. We evaluated ZNGA against 80 industry peers in the Entertainment industry. Both the profitability and financial health of ZNGA have multiple concerns. ZNGA is valied quite expensively at the moment, while it does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ZNGA was profitable.

1.2 Ratios

		Industry Rank	Sector Rank
ROA	-1.8%
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

1.3 Margins

		Industry Rank	Sector Rank
OM	5.5%
PM (TTM)	-3.76%
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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

Compared to 1 year ago, ZNGA has more shares outstanding
ZNGA has a worse debt/assets ratio than last year.

2.2 Solvency

ZNGA has an Altman-Z score of 1.86. This is not the best score and indicates that ZNGA is in the grey zone with still only limited risk for bankruptcy at the moment.
A Debt/Equity ratio of 0.53 indicates that ZNGA is somewhat dependend on debt financing.

		Industry Rank	Sector Rank
Debt/Equity	0.53
Debt/FCF	N/A
Altman-Z	1.86

ROIC/WACCN/A

WACCN/A

2.3 Liquidity

A Current Ratio of 1.12 indicates that ZNGA should not have too much problems paying its short term obligations.
A Quick Ratio of 1.12 indicates that ZNGA should not have too much problems paying its short term obligations.

		Industry Rank	Sector Rank
Current Ratio	1.12
Quick Ratio	1.12

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

ZNGA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.65%.
ZNGA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.49% yearly.
The Revenue has grown by 24.88% in the past year. This is a very strong growth!
Measured over the past years, ZNGA shows a very strong growth in Revenue. The Revenue has been growing by 30.45% on average per year.

EPS 1Y (TTM)-48.65%

EPS 3Y5.57%

EPS 5Y58.49%

EPS Q2Q%-12.5%

Revenue 1Y (TTM)24.88%

Revenue growth 3Y45.61%

Revenue growth 5Y30.45%

Sales Q2Q%1.6%

3.2 Future

Based on estimates for the next years, ZNGA will show a very strong growth in Earnings Per Share. The EPS will grow by 29.48% on average per year.
The Revenue is expected to grow by 7.32% on average over the next years.

EPS Next Y98.98%

EPS Next 2Y54.39%

EPS Next 3Y39.54%

EPS Next 5Y29.48%

Revenue Next Year10.82%

Revenue Next 2Y10.31%

Revenue Next 3Y8.24%

Revenue Next 5Y7.32%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 43.05, the valuation of ZNGA can be described as expensive.
Compared to an average S&P500 Price/Earnings ratio of 27.21, ZNGA is valued quite expensively.
With a Price/Forward Earnings ratio of 17.16, ZNGA is valued on the expensive side.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ZNGA is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	43.05
Fwd PE	17.16

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	24.63

4.3 Compensation for Growth

ZNGA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ZNGA's earnings are expected to grow with 39.54% in the coming years. This may justify a more expensive valuation.