Zuora Inc (ZUO) Stock Fundamental Analysis
USA - New York Stock Exchange - 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 280 industry peers in the Software industry. Both the profitability and financial health of ZUO have multiple concerns. ZUO is not valued too expensively and it also shows a decent 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.
In the past 5 years ZUO always reported negative net income.
In multiple years ZUO reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of -8.63%, ZUO perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
ZUO's Return On Equity of -40.16% is on the low side compared to the rest of the industry. ZUO is outperformed by 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's Gross Margin of 67.42% is in line compared to the rest of the industry. ZUO outperforms 50.00% of its industry peers.
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 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.
ZUO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ZUO has more shares outstanding
Compared to 1 year ago, ZUO has a worse debt to assets ratio.
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.
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 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.
The Debt to Equity ratio of ZUO (2.00) is worse 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 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 Quick ratio of 2.62. This is in the better half of the industry: ZUO outperforms 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.
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
The Earnings Per Share is expected to grow by 30.13% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 18.73% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 17.28, ZUO is valued on the expensive side.
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.
ZUO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
Based on the Price/Forward Earnings ratio of 17.40, the valuation of ZUO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ZUO is valued cheaply inside the industry as 83.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, 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 cheaper than 82.97% of the companies in the same industry.
| 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-51.46%
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 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
Graham NumberN/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
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 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
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.
What is the valuation status of Zuora Inc (ZUO) stock?
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 expected EPS growth for ZUO stock?
The Earnings per Share (EPS) of Zuora Inc (ZUO) is expected to grow by 72.16% in the next year.