ZUMIEZ INC (ZUMZ) Stock Fundamental Analysis
NASDAQ:ZUMZ - Nasdaq - US9898171015 - Common Stock - Currency: USD
Taking everything into account, ZUMZ scores 4 out of 10 in our fundamental rating. ZUMZ was compared to 120 industry peers in the Specialty Retail industry. No worries on liquidiy or solvency for ZUMZ as it has an excellent financial health rating, but there are worries on the profitability. ZUMZ has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ZUMZ has reported negative net income.
In the past year ZUMZ had a positive cash flow from operations.
In multiple years ZUMZ reported negative net income over the last 5 years.
Of the past 5 years ZUMZ 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.27%, ZUMZ perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
ZUMZ has a Return On Equity (-0.52%) which is in line with its industry peers.
ZUMZ's Return On Invested Capital of 0.32% is on the low side compared to the rest of the industry. ZUMZ is outperformed by 61.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.52% | ||
| ROIC | 0.32% |
ROA(3y)-2.3%
ROA(5y)2.92%
ROE(3y)-4.36%
ROE(5y)5.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ZUMZ has a worse Operating Margin (0.22%) than 62.50% of its industry peers.
In the last couple of years the Operating Margin of ZUMZ has declined.
Looking at the Gross Margin, with a value of 34.08%, ZUMZ is in line with its industry, outperforming 44.17% of the companies in the same industry.
ZUMZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.22% | ||
| PM (TTM) | N/A | ||
| GM | 34.08% |
OM growth 3Y-69.24%
OM growth 5Y-45.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.98%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZUMZ is destroying value.
The number of shares outstanding for ZUMZ has been reduced compared to 1 year ago.
The number of shares outstanding for ZUMZ has been reduced compared to 5 years ago.
ZUMZ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ZUMZ has an Altman-Z score of 2.53. This is not the best score and indicates that ZUMZ is in the grey zone with still only limited risk for bankruptcy at the moment.
ZUMZ's Altman-Z score of 2.53 is in line compared to the rest of the industry. ZUMZ outperforms 58.33% of its industry peers.
ZUMZ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.03
WACC9.74%
2.3 Liquidity
A Current Ratio of 2.07 indicates that ZUMZ has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.07, ZUMZ belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
ZUMZ has a Quick Ratio of 1.13. This is a normal value and indicates that ZUMZ is financially healthy and should not expect problems in meeting its short term obligations.
ZUMZ has a Quick ratio of 1.13. This is in the better half of the industry: ZUMZ outperforms 78.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
ZUMZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 98.15%, which is quite impressive.
Looking at the last year, ZUMZ shows a small growth in Revenue. The Revenue has grown by 1.57% in the last year.
ZUMZ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.97% yearly.
EPS 1Y (TTM)98.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%145.09%
Revenue 1Y (TTM)1.57%
Revenue growth 3Y-9.1%
Revenue growth 5Y-2.97%
Sales Q2Q%-0.94%
3.2 Future
The Earnings Per Share is expected to grow by 173.06% on average over the next years. This is a very strong growth
Based on estimates for the next years, ZUMZ will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y513.66%
EPS Next 2Y233.52%
EPS Next 3Y173.06%
EPS Next 5YN/A
Revenue Next Year0.97%
Revenue Next 2Y1.34%
Revenue Next 3Y2.41%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ZUMZ. In the last year negative earnings were reported.
ZUMZ is valuated quite expensively with a Price/Forward Earnings ratio of 50.32.
Based on the Price/Forward Earnings ratio, ZUMZ is valued a bit more expensive than the industry average as 60.83% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.15. ZUMZ is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 50.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZUMZ is valued cheaply inside the industry as 99.17% of the companies are valued more expensively.
ZUMZ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.9 | ||
| EV/EBITDA | 0.87 |
4.3 Compensation for Growth
ZUMZ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ZUMZ's earnings are expected to grow with 173.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y233.52%
EPS Next 3Y173.06%
5. Dividend
5.1 Amount
ZUMZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.49
-0.41 (-3.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners82.05%
Inst Owner Change-3.84%
Ins Owners20.72%
Ins Owner Change0.79%
Market Cap244.43M
Analysts47.5
Price Target18.36 (47%)
Short Float %7.18%
Short Ratio3.12
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)65.44%
Min EPS beat(2)-4.41%
Max EPS beat(2)135.29%
EPS beat(4)3
Avg EPS beat(4)61.25%
Min EPS beat(4)-4.41%
Max EPS beat(4)135.29%
EPS beat(8)5
Avg EPS beat(8)-55.16%
EPS beat(12)7
Avg EPS beat(12)-42.07%
EPS beat(16)10
Avg EPS beat(16)130.42%
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.77%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)2.03%
Revenue beat(8)4
Avg Revenue beat(8)-0.38%
Revenue beat(12)6
Avg Revenue beat(12)-0.36%
Revenue beat(16)7
Avg Revenue beat(16)0.42%
PT rev (1m)0%
PT rev (3m)-14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-150.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-68.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 50.32 | ||
| P/S | 0.27 | ||
| P/FCF | 42.9 | ||
| P/OCF | 11.81 | ||
| P/B | 0.74 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 0.87 |
EPS(TTM)-0.06
EYN/A
EPS(NY)0.25
Fwd EY1.99%
FCF(TTM)0.29
FCFY2.33%
OCF(TTM)1.06
OCFY8.47%
SpS45.44
BVpS16.81
TBVpS15.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.52% | ||
| ROCE | 0.41% | ||
| ROIC | 0.32% | ||
| ROICexc | 0.46% | ||
| ROICexgc | 0.51% | ||
| OM | 0.22% | ||
| PM (TTM) | N/A | ||
| GM | 34.08% | ||
| FCFM | 0.64% |
ROA(3y)-2.3%
ROA(5y)2.92%
ROE(3y)-4.36%
ROE(5y)5.23%
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 3Y-71.81%
ROICexcg growth 5Y-43.58%
ROICexc growth 3Y-70.67%
ROICexc growth 5Y-42.87%
OM growth 3Y-69.24%
OM growth 5Y-45.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.98%
GM growth 5Y-0.75%
F-Score7
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 67.71% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.53 |
F-Score7
WACC9.74%
ROIC/WACC0.03
Cap/Depr(3y)91.88%
Cap/Depr(5y)76.39%
Cap/Sales(3y)2.23%
Cap/Sales(5y)1.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)98.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%145.09%
EPS Next Y513.66%
EPS Next 2Y233.52%
EPS Next 3Y173.06%
EPS Next 5YN/A
Revenue 1Y (TTM)1.57%
Revenue growth 3Y-9.1%
Revenue growth 5Y-2.97%
Sales Q2Q%-0.94%
Revenue Next Year0.97%
Revenue Next 2Y1.34%
Revenue Next 3Y2.41%
Revenue Next 5YN/A
EBIT growth 1Y103.01%
EBIT growth 3Y-72.04%
EBIT growth 5Y-47.44%
EBIT Next Year6983.28%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y201.82%
FCF growth 3Y-63.72%
FCF growth 5Y-42%
OCF growth 1Y40.3%
OCF growth 3Y-46.48%
OCF growth 5Y-27.81%