ZUORA INC - CLASS A (ZUO)
US98983V1061 - Common Stock
ZUO gets a fundamental rating of 3 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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ZUO had positive earnings in the past year.
In the past year ZUO has reported a negative cash flow from operations.
ZUO had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: ZUO reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of -8.28%, ZUO is in line with its industry, outperforming 51.46% of the companies in the same industry.
ZUO's Return On Equity of -51.04% is on the low side compared to the rest of the industry. ZUO is outperformed by 65.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.28% | ||
| ROE | -51.04% | ||
| 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 (65.95%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ZUO has grown nicely.
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 | 65.95% |
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.
The number of shares outstanding for ZUO has been increased compared to 1 year ago.
The number of shares outstanding for ZUO has been increased compared to 5 years ago.
The debt/assets ratio for ZUO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that ZUO is in the distress zone and has some risk of bankruptcy.
ZUO has a Altman-Z score of 0.69. This is in the lower half of the industry: ZUO underperforms 64.96% of its industry peers.
ZUO has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.69, ZUO is not doing good in the industry: 82.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACCN/A
WACC9.5%
2.3 Liquidity
ZUO has a Current Ratio of 2.43. This indicates that ZUO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.43, ZUO is in the better half of the industry, outperforming 68.61% of the companies in the same industry.
ZUO has a Quick Ratio of 2.43. This indicates that ZUO is financially healthy and has no problem in meeting its short term obligations.
ZUO's Quick ratio of 2.43 is fine compared to the rest of the industry. ZUO outperforms 69.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 375.00% over the past year.
The Revenue has grown by 8.97% in the past year. This is quite good.
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)375%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q400%
Revenue 1Y (TTM)8.97%
Revenue growth 3Y12.23%
Revenue growth 5Y12.93%
Revenue growth Q2Q7.45%
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 26.16% on average per year.
The Revenue is expected to grow by 18.73% on average over the next years. This is quite good.
EPS Next Y22.94%
EPS Next 2Y26.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.13%
Revenue Next 2Y7.19%
Revenue Next 3Y18.36%
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
ZUO is valuated quite expensively with a Price/Earnings ratio of 30.15.
Based on the Price/Earnings ratio, ZUO is valued a bit cheaper than 75.55% of the companies in the same industry.
ZUO is valuated rather expensively when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.53 indicates a rather expensive valuation of ZUO.
Based on the Price/Forward Earnings ratio, ZUO is valued a bit cheaper than the industry average as 78.10% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.35. ZUO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.15 | ||
| Fwd PE | 24.53 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ZUO's earnings are expected to grow with 26.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)N/A
EPS Next 2Y26.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ZUO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZUORA INC - CLASS A
NYSE:ZUO (4/26/2024, 7:25:55 PM)
After market: 9.81 -0.14 (-1.41%)9.95
+0.09 (+0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.15 | ||
| Fwd PE | 24.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.28% | ||
| ROE | -51.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)375%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y22.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.97%
Revenue growth 3Y12.23%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y