ZALARIS ASA (ZAL.OL) Stock Fundamental Analysis
OSL:ZAL - Euronext Oslo - NO0010708910 - Common Stock - Currency: NOK
Overall ZAL gets a fundamental rating of 5 out of 10. We evaluated ZAL against 28 industry peers in the Professional Services industry. ZAL has only an average score on both its financial health and profitability. ZAL is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make ZAL suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year ZAL was profitable.
In the past year ZAL had a positive cash flow from operations.
ZAL had negative earnings in 4 of the past 5 years.
ZAL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZAL has a Return On Assets of 3.80%. This is comparable to the rest of the industry: ZAL outperforms 53.57% of its industry peers.
Looking at the Return On Equity, with a value of 19.21%, ZAL is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
The Return On Invested Capital of ZAL (11.42%) is better than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZAL is significantly below the industry average of 11.14%.
The 3 year average ROIC (6.09%) for ZAL is below the current ROIC(11.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 19.21% | ||
| ROIC | 11.42% |
ROA(3y)-0.91%
ROA(5y)-0.99%
ROE(3y)-5.79%
ROE(5y)-6.72%
ROIC(3y)6.09%
ROIC(5y)5.21%
1.3 Margins
With a decent Profit Margin value of 2.96%, ZAL is doing good in the industry, outperforming 64.29% of the companies in the same industry.
With a decent Operating Margin value of 7.11%, ZAL is doing good in the industry, outperforming 64.29% of the companies in the same industry.
ZAL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.11% | ||
| PM (TTM) | 2.96% | ||
| GM | N/A |
OM growth 3Y9.68%
OM growth 5Y21.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ZAL is creating some value.
ZAL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ZAL has more shares outstanding
The debt/assets ratio for ZAL has been reduced compared to a year ago.
2.2 Solvency
ZAL has an Altman-Z score of 3.02. This indicates that ZAL is financially healthy and has little risk of bankruptcy at the moment.
ZAL has a better Altman-Z score (3.02) than 64.29% of its industry peers.
The Debt to FCF ratio of ZAL is 7.07, which is on the high side as it means it would take ZAL, 7.07 years of fcf income to pay off all of its debts.
ZAL has a Debt to FCF ratio (7.07) which is comparable to the rest of the industry.
ZAL has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.02, ZAL is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 3.02 |
ROIC/WACC1.39
WACC8.19%
2.3 Liquidity
ZAL has a Current Ratio of 1.62. This is a normal value and indicates that ZAL is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.62, ZAL belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
ZAL has a Quick Ratio of 1.62. This is a normal value and indicates that ZAL is financially healthy and should not expect problems in meeting its short term obligations.
ZAL has a Quick ratio of 1.62. This is amongst the best in the industry. ZAL outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
ZAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 226.70%, which is quite impressive.
The Revenue has grown by 50.78% in the past year. This is a very strong growth!
ZAL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.70% yearly.
EPS 1Y (TTM)226.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-45.16%
Revenue 1Y (TTM)50.78%
Revenue growth 3Y12.6%
Revenue growth 5Y8.7%
Sales Q2Q%22.43%
3.2 Future
ZAL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.59% yearly.
The Revenue is expected to grow by 11.52% on average over the next years. This is quite good.
EPS Next Y138.83%
EPS Next 2Y53.23%
EPS Next 3Y44.43%
EPS Next 5Y38.59%
Revenue Next Year18.67%
Revenue Next 2Y15.48%
Revenue Next 3Y12.94%
Revenue Next 5Y11.52%
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
A Price/Earnings ratio of 40.10 indicates a quite expensive valuation of ZAL.
Based on the Price/Earnings ratio, ZAL is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.79. ZAL is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 16.75, the valuation of ZAL can be described as correct.
Based on the Price/Forward Earnings ratio, ZAL is valued a bit cheaper than 64.29% of the companies in the same industry.
ZAL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.1 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
ZAL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZAL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24 | ||
| EV/EBITDA | 12.25 |
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.
ZAL's earnings are expected to grow with 44.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y53.23%
EPS Next 3Y44.43%
5. Dividend
5.1 Amount
ZAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OSL:ZAL (4/25/2025, 7:00:00 PM)
81.8
-1.2 (-1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners43.2%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.81B
Analysts80
Price Target99.45 (21.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)18.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)14.29%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.1 | ||
| Fwd PE | 16.75 | ||
| P/S | 1.12 | ||
| P/FCF | 24 | ||
| P/OCF | 15.32 | ||
| P/B | 7.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.25 |
EPS(TTM)2.04
EY2.49%
EPS(NY)4.89
Fwd EY5.97%
FCF(TTM)3.41
FCFY4.17%
OCF(TTM)5.34
OCFY6.53%
SpS72.82
BVpS11.23
TBVpS-4.28
PEG (NY)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 19.21% | ||
| ROCE | 14.84% | ||
| ROIC | 11.42% | ||
| ROICexc | 14.9% | ||
| ROICexgc | 35.44% | ||
| OM | 7.11% | ||
| PM (TTM) | 2.96% | ||
| GM | N/A | ||
| FCFM | 4.68% |
ROA(3y)-0.91%
ROA(5y)-0.99%
ROE(3y)-5.79%
ROE(5y)-6.72%
ROIC(3y)6.09%
ROIC(5y)5.21%
ROICexc(3y)17.4%
ROICexc(5y)13.15%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.91%
ROCE(5y)6.76%
ROICexcg growth 3YN/A
ROICexcg growth 5Y7.8%
ROICexc growth 3Y-3.39%
ROICexc growth 5Y22.15%
OM growth 3Y9.68%
OM growth 5Y21.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 7.07 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 68.87% | ||
| Cap/Sales | 2.65% | ||
| Interest Coverage | 2.62 | ||
| Cash Conversion | 66.91% | ||
| Profit Quality | 158.01% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 3.02 |
F-Score8
WACC8.19%
ROIC/WACC1.39
Cap/Depr(3y)51.5%
Cap/Depr(5y)46.32%
Cap/Sales(3y)2.92%
Cap/Sales(5y)2.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)226.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-45.16%
EPS Next Y138.83%
EPS Next 2Y53.23%
EPS Next 3Y44.43%
EPS Next 5Y38.59%
Revenue 1Y (TTM)50.78%
Revenue growth 3Y12.6%
Revenue growth 5Y8.7%
Sales Q2Q%22.43%
Revenue Next Year18.67%
Revenue Next 2Y15.48%
Revenue Next 3Y12.94%
Revenue Next 5Y11.52%
EBIT growth 1Y115.87%
EBIT growth 3Y23.51%
EBIT growth 5Y32.38%
EBIT Next Year224.64%
EBIT Next 3Y67.33%
EBIT Next 5Y49.32%
FCF growth 1Y410.06%
FCF growth 3Y-31.83%
FCF growth 5YN/A
OCF growth 1Y957.83%
OCF growth 3Y-14.06%
OCF growth 5Y62.29%