Zuora Inc (ZUO) Fundamental Analysis & Valuation

NYSE:ZUO • US98983V1061

10.02 USD
+0.03 (+0.3%)
At close: Feb 13, 2025
10.11 USD
+0.09 (+0.9%)
After Hours: 2/13/2025, 8:11:32 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This ZUO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

ZUO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 276 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.


Dividend Valuation Growth Profitability Health

2

1. ZUO Profitability Analysis

1.1 Basic Checks

  • In the past year ZUO was profitable.
  • 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.
ZUO Yearly Net Income VS EBIT VS OCF VS FCFZUO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50M -100M -150M

1.2 Ratios

  • ZUO has a Return On Assets of -8.63%. This is comparable 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 RankSector 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
ZUO Yearly ROA, ROE, ROICZUO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 -50 -100 -150 -200

1.3 Margins

  • The Gross Margin of ZUO (67.42%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of ZUO has grown nicely.
  • ZUO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector 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%
ZUO Yearly Profit, Operating, Gross MarginsZUO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60

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3

2. ZUO Health Analysis

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
  • ZUO has more shares outstanding than it did 5 years ago.
  • ZUO has a worse debt/assets ratio than last year.
ZUO Yearly Shares OutstandingZUO Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M
ZUO Yearly Total Debt VS Total AssetsZUO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

  • Based on the Altman-Z score of 0.88, we must say that ZUO is in the distress zone and has some risk of bankruptcy.
  • ZUO has a worse Altman-Z score (0.88) than 66.30% of its industry peers.
  • The Debt to FCF ratio of ZUO is 5.17, which is a neutral value as it means it would take ZUO, 5.17 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ZUO (5.17) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 2.00 is on the high side and indicates that ZUO has dependencies on debt financing.
  • ZUO's Debt to Equity ratio of 2.00 is on the low side compared to the rest of the industry. ZUO is outperformed by 83.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 2
Debt/FCF 5.17
Altman-Z 0.88
ROIC/WACCN/A
WACC13.48%
ZUO Yearly LT Debt VS Equity VS FCFZUO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

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.
  • With a decent Current ratio value of 2.62, ZUO is doing good in the industry, outperforming 71.38% of the companies in the same industry.
  • 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.
  • ZUO's Quick ratio of 2.62 is fine compared to the rest of the industry. ZUO outperforms 71.74% of its industry peers.
Industry RankSector Rank
Current Ratio 2.62
Quick Ratio 2.62
ZUO Yearly Current Assets VS Current LiabilitesZUO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ZUO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 241.18% over the past year.
  • Looking at the last year, ZUO shows a small growth in Revenue. The Revenue has grown by 6.80% in the last year.
  • Measured over the past years, ZUO shows a quite strong growth in Revenue. The Revenue has been growing by 12.93% on average per year.
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

  • ZUO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.13% yearly.
  • 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

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ZUO Yearly Revenue VS EstimatesZUO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M
ZUO Yearly EPS VS EstimatesZUO Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.2 -0.2 0.4 -0.4 0.6 -0.6

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6

4. ZUO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 17.28, ZUO is valued on the expensive side.
  • 84.06% of the companies in the same industry are more expensive than ZUO, based on the Price/Earnings ratio.
  • ZUO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 17.40, ZUO is valued on the expensive side.
  • 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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.57.
Industry RankSector Rank
PE 17.28
Fwd PE 17.4
ZUO Price Earnings VS Forward Price EarningsZUO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 RankSector Rank
P/FCF 21.71
EV/EBITDA N/A
ZUO Per share dataZUO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.5 1 1.5 2 2.5

4.3 Compensation for Growth

  • ZUO's 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ZUO Dividend Analysis

5.1 Amount

  • ZUO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ZUO Fundamentals: All Metrics, Ratios and Statistics

Zuora Inc

NYSE:ZUO (2/13/2025, 8:11:32 PM)

After market: 10.11 +0.09 (+0.9%)

10.02

+0.03 (+0.3%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-09
Earnings (Next)02-26
Inst Owners87.14%
Inst Owner Change-100%
Ins Owners1.09%
Ins Owner Change0%
Market Cap1.55B
Revenue(TTM)452.76M
Net Income(TTM)-73.97M
Analysts49.09
Price Target10.2 (1.8%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham NumberN/A
Profitability
Industry RankSector 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
ROICexgc growth 3YN/A
ROICexgc 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 RankSector 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

Zuora Inc / ZUO FAQ

What is the ChartMill fundamental rating of Zuora Inc (ZUO) stock?

ChartMill assigns a fundamental rating of 4 / 10 to ZUO.


Can you provide the valuation status for Zuora Inc?

ChartMill assigns a valuation rating of 6 / 10 to Zuora Inc (ZUO). This can be considered as Fairly Valued.


Can you provide the profitability details for Zuora Inc?

Zuora Inc (ZUO) has a profitability rating of 2 / 10.


Can you provide the PE and PB ratios for ZUO stock?

The Price/Earnings (PE) ratio for Zuora Inc (ZUO) is 17.28 and the Price/Book (PB) ratio is 8.4.


What is the expected EPS growth for Zuora Inc (ZUO) stock?

The Earnings per Share (EPS) of Zuora Inc (ZUO) is expected to grow by 72.16% in the next year.