ZEDGE INC-CL B (ZDGE) Stock Fundamental Analysis
NYSEARCA:ZDGE - NYSE Arca - US98923T1043 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ZDGE. ZDGE was compared to 71 industry peers in the Interactive Media & Services industry. While ZDGE has a great health rating, there are worries on its profitability. ZDGE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ZDGE had positive earnings in the past year.
ZDGE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ZDGE reported negative net income in multiple years.
In the past 5 years ZDGE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -24.86%, ZDGE is doing worse than 75.76% of the companies in the same industry.
With a Return On Equity value of -31.54%, ZDGE is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -24.86% | ||
| ROE | -31.54% | ||
| ROIC | N/A |
ROA(3y)-6.42%
ROA(5y)-0.38%
ROE(3y)-7.8%
ROE(5y)-0.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of ZDGE has declined.
ZDGE's Gross Margin of 93.93% is amongst the best of the industry. ZDGE outperforms 95.45% of its industry peers.
In the last couple of years the Gross Margin of ZDGE has grown nicely.
ZDGE 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 | 93.93% |
OM growth 3Y-76.64%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.03%
GM growth 5Y2.15%
2. Health
2.1 Basic Checks
ZDGE does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ZDGE remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ZDGE has more shares outstanding
There is no outstanding debt for ZDGE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.57 indicates that ZDGE is not in any danger for bankruptcy at the moment.
ZDGE has a Altman-Z score of 3.57. This is in the better half of the industry: ZDGE outperforms 74.24% of its industry peers.
ZDGE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.57 |
ROIC/WACCN/A
WACC8.96%
2.3 Liquidity
A Current Ratio of 3.62 indicates that ZDGE has no problem at all paying its short term obligations.
The Current ratio of ZDGE (3.62) is better than 75.76% of its industry peers.
ZDGE has a Quick Ratio of 3.62. This indicates that ZDGE is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ZDGE (3.62) is better than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.62 | ||
| Quick Ratio | 3.62 |
3. Growth
3.1 Past
ZDGE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 114.55%, which is quite impressive.
ZDGE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -47.41% yearly.
ZDGE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.15%.
ZDGE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.83% yearly.
EPS 1Y (TTM)114.55%
EPS 3Y-47.41%
EPS 5YN/A
EPS Q2Q%-2149.53%
Revenue 1Y (TTM)10.15%
Revenue growth 3Y15.42%
Revenue growth 5Y27.83%
Sales Q2Q%1.69%
3.2 Future
Based on estimates for the next years, ZDGE will show a very strong growth in Earnings Per Share. The EPS will grow by 59.69% on average per year.
Based on estimates for the next years, ZDGE will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
EPS Next Y-10.75%
EPS Next 2Y59.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.49%
Revenue Next 2Y1.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ZDGE is valuated quite expensively with a Price/Earnings ratio of 33.13.
ZDGE's Price/Earnings ratio is in line with the industry average.
ZDGE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
ZDGE is valuated correctly with a Price/Forward Earnings ratio of 12.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZDGE indicates a somewhat cheap valuation: ZDGE is cheaper than 78.79% of the companies listed in the same industry.
ZDGE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.13 | ||
| Fwd PE | 12.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZDGE indicates a somewhat cheap valuation: ZDGE is cheaper than 75.76% of the companies listed in the same industry.
93.94% of the companies in the same industry are more expensive than ZDGE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.72 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ZDGE's earnings are expected to grow with 59.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ZDGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSEARCA:ZDGE (2/21/2025, 8:04:00 PM)
2.65
-0.09 (-3.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners15.26%
Inst Owner Change-93.82%
Ins Owners15.83%
Ins Owner Change4.31%
Market Cap37.47M
Analysts82.86
Price Target4.08 (53.96%)
Short Float %0.24%
Short Ratio0.21
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)0
Avg EPS beat(2)-75.49%
Min EPS beat(2)-100%
Max EPS beat(2)-50.98%
EPS beat(4)1
Avg EPS beat(4)13.73%
Min EPS beat(4)-100%
Max EPS beat(4)247.06%
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)0
Avg Revenue beat(2)-4.11%
Min Revenue beat(2)-5.19%
Max Revenue beat(2)-3.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-5.19%
Max Revenue beat(4)4.5%
Revenue beat(8)5
Avg Revenue beat(8)1.56%
Revenue beat(12)8
Avg Revenue beat(12)2.93%
Revenue beat(16)11
Avg Revenue beat(16)8.8%
PT rev (1m)0%
PT rev (3m)-42.86%
EPS NQ rev (1m)-33.33%
EPS NQ rev (3m)0%
EPS NY rev (1m)-61.11%
EPS NY rev (3m)-61.11%
Revenue NQ rev (1m)-7.44%
Revenue NQ rev (3m)-9.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-14.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.13 | ||
| Fwd PE | 12.99 | ||
| P/S | 1.24 | ||
| P/FCF | 7.72 | ||
| P/OCF | 6.51 | ||
| P/B | 1.24 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 12.05 |
EPS(TTM)0.08
EY3.02%
EPS(NY)0.2
Fwd EY7.7%
FCF(TTM)0.34
FCFY12.95%
OCF(TTM)0.41
OCFY15.37%
SpS2.14
BVpS2.13
TBVpS1.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -24.86% | ||
| ROE | -31.54% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 93.93% | ||
| FCFM | 16.07% |
ROA(3y)-6.42%
ROA(5y)-0.38%
ROE(3y)-7.8%
ROE(5y)-0.96%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-76.64%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.03%
GM growth 5Y2.15%
F-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 43.98% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 401.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.62 | ||
| Quick Ratio | 3.62 | ||
| Altman-Z | 3.57 |
F-Score6
WACC8.96%
ROIC/WACCN/A
Cap/Depr(3y)66.82%
Cap/Depr(5y)60.13%
Cap/Sales(3y)6.21%
Cap/Sales(5y)5.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)114.55%
EPS 3Y-47.41%
EPS 5YN/A
EPS Q2Q%-2149.53%
EPS Next Y-10.75%
EPS Next 2Y59.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.15%
Revenue growth 3Y15.42%
Revenue growth 5Y27.83%
Sales Q2Q%1.69%
Revenue Next Year-2.49%
Revenue Next 2Y1.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-214.86%
EBIT growth 3Y-73.03%
EBIT growth 5YN/A
EBIT Next Year140.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-32.85%
FCF growth 3Y-21.09%
FCF growth 5YN/A
OCF growth 1Y-41.7%
OCF growth 3Y-16.72%
OCF growth 5Y138.38%