Zuora Inc (ZUO) Stock Fundamental Analysis
USA - NYSE:ZUO - US98983V1061 - Common Stock
10.02 USD
+0.03 (+0.3%)
10.11 USD
+0.09 (+0.9%)
ZUO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. Both the profitability and financial health of ZUO have multiple concerns. ZUO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ZUO had positive earnings in the past year.
In the past year ZUO had a positive cash flow from operations.
ZUO had negative earnings in each of the past 5 years.
In multiple years ZUO reported negative operating cash flow during the last 5 years.
1.2 Ratios
ZUO's Return On Assets of -8.63% is in line compared to the rest of the industry. ZUO outperforms 41.67% of its industry peers.
ZUO has a Return On Equity of -40.16%. This is in the lower half of the industry: ZUO underperforms 65.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.63% | ||
| ROE | -40.16% | ||
| ROIC | N/A |
ROA(3y)-20.14%
ROA(5y)-19.7%
ROE(3y)-104.33%
ROE(5y)-81.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ZUO has a Gross Margin (67.42%) which is comparable to the rest of the industry.
ZUO's Gross Margin has improved in the last couple of years.
ZUO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 67.42% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.86%
GM growth 5Y5.53%
2. Health
2.1 Basic Checks
ZUO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ZUO has more shares outstanding
The number of shares outstanding for ZUO has been increased compared to 5 years ago.
ZUO has a worse debt/assets ratio than last year.
2.2 Solvency
ZUO has an Altman-Z score of 0.88. This is a bad value and indicates that ZUO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ZUO (0.88) is worse than 66.30% of its industry peers.
ZUO has a debt to FCF ratio of 5.17. This is a neutral value as ZUO would need 5.17 years to pay back of all of its debts.
ZUO has a Debt to FCF ratio of 5.17. This is comparable to the rest of the industry: ZUO outperforms 56.16% of its industry peers.
ZUO has a Debt/Equity ratio of 2.00. This is a high value indicating a heavy dependency on external financing.
ZUO has a Debt to Equity ratio of 2.00. This is amonst the worse of the industry: ZUO underperforms 83.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 0.88 |
ROIC/WACCN/A
WACC13.48%
2.3 Liquidity
ZUO has a Current Ratio of 2.62. This indicates that ZUO is financially healthy and has no problem in meeting its short term obligations.
ZUO has a better Current ratio (2.62) than 71.38% of its industry peers.
A Quick Ratio of 2.62 indicates that ZUO has no problem at all paying its short term obligations.
ZUO has a better Quick ratio (2.62) than 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
ZUO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 241.18%, which is quite impressive.
Looking at the last year, ZUO shows a small growth in Revenue. The Revenue has grown by 6.80% in the last year.
The Revenue has been growing by 12.93% on average over the past years. This is quite good.
EPS 1Y (TTM)241.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%77.78%
Revenue 1Y (TTM)6.8%
Revenue growth 3Y12.23%
Revenue growth 5Y12.93%
Sales Q2Q%6.45%
3.2 Future
The Earnings Per Share is expected to grow by 30.13% on average over the next years. This is a very strong growth
Based on estimates for the next years, ZUO will show a quite strong growth in Revenue. The Revenue will grow by 18.73% on average per year.
EPS Next Y72.16%
EPS Next 2Y32.08%
EPS Next 3Y30.13%
EPS Next 5YN/A
Revenue Next Year6.33%
Revenue Next 2Y6.68%
Revenue Next 3Y9.07%
Revenue Next 5Y18.73%
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 17.28, which indicates a rather expensive current valuation of ZUO.
Compared to the rest of the industry, the Price/Earnings ratio of ZUO indicates a rather cheap valuation: ZUO is cheaper than 84.06% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ZUO to the average of the S&P500 Index (27.41), we can say ZUO is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.40, which indicates a rather expensive current valuation of ZUO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZUO indicates a rather cheap valuation: ZUO is cheaper than 83.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, ZUO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 17.4 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ZUO is valued cheaply inside the industry as 82.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ZUO's earnings are expected to grow with 30.13% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y32.08%
EPS Next 3Y30.13%
5. Dividend
5.1 Amount
No dividends for ZUO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.02
+0.03 (+0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.14%
Inst Owner Change-20.8%
Ins Owners1.09%
Ins Owner Change0%
Market Cap1.55B
Analysts49.09
Price Target10.2 (1.8%)
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)69.42%
Min EPS beat(2)40.81%
Max EPS beat(2)98.02%
EPS beat(4)4
Avg EPS beat(4)83.96%
Min EPS beat(4)40.81%
Max EPS beat(4)137.62%
EPS beat(8)8
Avg EPS beat(8)363.75%
EPS beat(12)11
Avg EPS beat(12)244.75%
EPS beat(16)14
Avg EPS beat(16)191.94%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)1.46%
Revenue beat(4)1
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)1.46%
Revenue beat(8)3
Avg Revenue beat(8)0.03%
Revenue beat(12)5
Avg Revenue beat(12)0%
Revenue beat(16)9
Avg Revenue beat(16)0.54%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 17.4 | ||
| P/S | 3.42 | ||
| P/FCF | 21.71 | ||
| P/OCF | 18.51 | ||
| P/B | 8.4 | ||
| P/tB | 17.76 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.58
EY5.79%
EPS(NY)0.58
Fwd EY5.75%
FCF(TTM)0.46
FCFY4.61%
OCF(TTM)0.54
OCFY5.4%
SpS2.93
BVpS1.19
TBVpS0.56
PEG (NY)0.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.63% | ||
| ROE | -40.16% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 67.42% | ||
| FCFM | 15.75% |
ROA(3y)-20.14%
ROA(5y)-19.7%
ROE(3y)-104.33%
ROE(5y)-81.24%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.86%
GM growth 5Y5.53%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 5.17 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 64.05% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | 0.88 |
F-Score5
WACC13.48%
ROIC/WACCN/A
Cap/Depr(3y)57.33%
Cap/Depr(5y)87.66%
Cap/Sales(3y)2.64%
Cap/Sales(5y)4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)241.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%77.78%
EPS Next Y72.16%
EPS Next 2Y32.08%
EPS Next 3Y30.13%
EPS Next 5YN/A
Revenue 1Y (TTM)6.8%
Revenue growth 3Y12.23%
Revenue growth 5Y12.93%
Sales Q2Q%6.45%
Revenue Next Year6.33%
Revenue Next 2Y6.68%
Revenue Next 3Y9.07%
Revenue Next 5Y18.73%
EBIT growth 1Y31.23%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year138.12%
EBIT Next 3Y49.23%
EBIT Next 5YN/A
FCF growth 1Y2125.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y987.37%
OCF growth 3YN/A
OCF growth 5YN/A