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 276 industry peers in the Software industry. Both the profitability and financial health of ZUO have multiple concerns. 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.
In the past 5 years ZUO always reported negative net income.
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
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.
The Return On Equity of ZUO (-40.16%) is worse than 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.
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.
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.
Compared to 1 year ago, ZUO has a worse debt to assets ratio.
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 (5.17) which is in line with 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 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
A Current Ratio of 2.62 indicates that ZUO has no problem at all paying its short term obligations.
ZUO has a better Current ratio (2.62) than 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%.
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
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.
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
Based on the Price/Earnings ratio of 17.28, the valuation of ZUO can be described as rather expensive.
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.
The average S&P500 Price/Earnings ratio is at 27.00. ZUO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.40 indicates a rather expensive valuation of ZUO.
ZUO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZUO is cheaper than 83.70% of the companies in the same industry.
ZUO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.70.
| 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
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%
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 Change0%
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.
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.