Zuora Inc (ZUO) Stock Fundamental Analysis
NYSE:ZUO - New York Stock Exchange, Inc. - US98983V1061 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ZUO. ZUO was compared to 282 industry peers in the Software industry. ZUO may be in some trouble as it scores bad on both profitability and health. ZUO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ZUO had positive earnings in the past year.
ZUO had a positive operating cash flow in the past year.
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 has a Return On Assets (-8.63%) which is comparable to the rest of the industry.
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 in line with its industry peers.
ZUO's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for ZUO so they could not be analyzed.
| 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
Compared to 5 years ago, ZUO has more shares outstanding
The debt/assets ratio for ZUO is higher compared to a year ago.
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.
ZUO has a worse Altman-Z score (0.88) 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 (5.17) which is in line with its industry peers.
A Debt/Equity ratio of 2.00 is on the high side and indicates that ZUO has dependencies on debt financing.
ZUO has a worse Debt to Equity ratio (2.00) than 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 Current ratio of 2.62. This is in the better half of the industry: ZUO outperforms 71.38% of its industry peers.
ZUO has a Quick Ratio of 2.62. This indicates that ZUO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ZUO (2.62) is better than 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 241.18% over the past year.
ZUO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.80%.
ZUO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.93% yearly.
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
Based on estimates for the next years, ZUO will show a very strong growth in Earnings Per Share. The EPS will grow by 30.13% on average per year.
ZUO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.73% yearly.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.28, which indicates a rather expensive current valuation of ZUO.
ZUO's Price/Earnings ratio is rather cheap when compared to the industry. ZUO is cheaper than 84.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of ZUO to the average of the S&P500 Index (27.45), we can say ZUO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.40, the valuation of ZUO can be described as rather expensive.
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.
ZUO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| 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.
ZUO's earnings are expected to grow with 30.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y32.08%
EPS Next 3Y30.13%
5. Dividend
5.1 Amount
ZUO does not give a dividend.
| 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-96.7%
Ins Owners1.09%
Ins Owner Change-30.82%
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