ZETA GLOBAL HOLDINGS CORP-A (ZETA) Stock Fundamental Analysis
NYSE:ZETA - New York Stock Exchange, Inc. - US98956A1051 - Common Stock - Currency: USD
ZETA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. While ZETA has a great health rating, there are worries on its profitability. ZETA is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
ZETA had positive earnings in the past year.
ZETA had a positive operating cash flow in the past year.
ZETA had negative earnings in each of the past 5 years.
ZETA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZETA's Return On Assets of -13.84% is on the low side compared to the rest of the industry. ZETA is outperformed by 66.67% of its industry peers.
ZETA has a worse Return On Equity (-25.33%) than 60.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.84% | ||
| ROE | -25.33% | ||
| ROIC | N/A |
ROA(3y)-52.83%
ROA(5y)-40.34%
ROE(3y)-201.84%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 60.26%, ZETA is not doing good in the industry: 61.23% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ZETA has grown nicely.
ZETA 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 | 60.26% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.54%
GM growth 5YN/A
2. Health
2.1 Basic Checks
ZETA does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ZETA has been increased compared to 1 year ago.
The debt/assets ratio for ZETA has been reduced compared to a year ago.
2.2 Solvency
ZETA has an Altman-Z score of 7.69. This indicates that ZETA is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 7.69, ZETA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of ZETA is 2.49, which is a good value as it means it would take ZETA, 2.49 years of fcf income to pay off all of its debts.
ZETA has a better Debt to FCF ratio (2.49) than 63.77% of its industry peers.
ZETA has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
ZETA has a Debt to Equity ratio of 0.41. This is in the lower half of the industry: ZETA underperforms 65.22% of its industry peers.
Even though the debt/equity ratio score it not favorable for ZETA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 7.69 |
ROIC/WACCN/A
WACC13.92%
2.3 Liquidity
A Current Ratio of 3.32 indicates that ZETA has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.32, ZETA is doing good in the industry, outperforming 78.99% of the companies in the same industry.
A Quick Ratio of 3.32 indicates that ZETA has no problem at all paying its short term obligations.
ZETA's Quick ratio of 3.32 is fine compared to the rest of the industry. ZETA outperforms 78.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 |
3. Growth
3.1 Past
ZETA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.03%.
ZETA shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.97%.
ZETA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.56% yearly.
EPS 1Y (TTM)-57.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%111.11%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y25.56%
Revenue growth 5YN/A
Sales Q2Q%41.97%
3.2 Future
The Earnings Per Share is expected to grow by 37.88% on average over the next years. This is a very strong growth
ZETA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.98% yearly.
EPS Next Y83.6%
EPS Next 2Y51.39%
EPS Next 3Y37.64%
EPS Next 5Y37.88%
Revenue Next Year36.01%
Revenue Next 2Y29.21%
Revenue Next 3Y25.52%
Revenue Next 5Y20.98%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
ZETA is valuated quite expensively with a Price/Earnings ratio of 37.69.
Based on the Price/Earnings ratio, ZETA is valued a bit cheaper than 64.13% of the companies in the same industry.
ZETA is valuated rather expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.84, which means the current valuation is very expensive for ZETA.
ZETA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ZETA is cheaper than 70.65% of the companies in the same industry.
ZETA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.69 | ||
| Fwd PE | 25.84 |
4.2 Price Multiples
ZETA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.44 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ZETA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ZETA's earnings are expected to grow with 37.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y51.39%
EPS Next 3Y37.64%
5. Dividend
5.1 Amount
ZETA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.73
-1.71 (-7.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners66.26%
Inst Owner Change-4.4%
Ins Owners8.73%
Ins Owner Change5.25%
Market Cap4.92B
Analysts80.95
Price Target38.1 (83.79%)
Short Float %13.4%
Short Ratio4.11
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)15.78%
Min EPS beat(2)9.43%
Max EPS beat(2)22.13%
EPS beat(4)3
Avg EPS beat(4)9.54%
Min EPS beat(4)-8.62%
Max EPS beat(4)22.13%
EPS beat(8)5
Avg EPS beat(8)139.64%
EPS beat(12)7
Avg EPS beat(12)78.88%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.66%
Min Revenue beat(2)4.18%
Max Revenue beat(2)5.15%
Revenue beat(4)3
Avg Revenue beat(4)2.72%
Min Revenue beat(4)-0.6%
Max Revenue beat(4)5.15%
Revenue beat(8)7
Avg Revenue beat(8)3.55%
Revenue beat(12)11
Avg Revenue beat(12)4.1%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.51%
PT rev (3m)6.73%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)14.1%
EPS NY rev (1m)0%
EPS NY rev (3m)9.16%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)12.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.69 | ||
| Fwd PE | 25.84 | ||
| P/S | 5.46 | ||
| P/FCF | 62.44 | ||
| P/OCF | 42.02 | ||
| P/B | 10.37 | ||
| P/tB | 18.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.55
EY2.65%
EPS(NY)0.8
Fwd EY3.87%
FCF(TTM)0.33
FCFY1.6%
OCF(TTM)0.49
OCFY2.38%
SpS3.8
BVpS2
TBVpS1.1
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.84% | ||
| ROE | -25.33% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 60.26% | ||
| FCFM | 8.75% |
ROA(3y)-52.83%
ROA(5y)-40.34%
ROE(3y)-201.84%
ROE(5y)N/A
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 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.54%
GM growth 5YN/A
F-Score5
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.49 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 72.56% | ||
| Cap/Sales | 4.25% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 | ||
| Altman-Z | 7.69 |
F-Score5
WACC13.92%
ROIC/WACCN/A
Cap/Depr(3y)100.47%
Cap/Depr(5y)108.78%
Cap/Sales(3y)8.62%
Cap/Sales(5y)10.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-57.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%111.11%
EPS Next Y83.6%
EPS Next 2Y51.39%
EPS Next 3Y37.64%
EPS Next 5Y37.88%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y25.56%
Revenue growth 5YN/A
Sales Q2Q%41.97%
Revenue Next Year36.01%
Revenue Next 2Y29.21%
Revenue Next 3Y25.52%
Revenue Next 5Y20.98%
EBIT growth 1Y43.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year130.89%
EBIT Next 3Y54.03%
EBIT Next 5Y41.92%
FCF growth 1Y519.03%
FCF growth 3Y52.04%
FCF growth 5YN/A
OCF growth 1Y53.5%
OCF growth 3Y36.57%
OCF growth 5YN/A