ZETA GLOBAL HOLDINGS CORP-A (ZETA)
US98956A1051 - Common Stock
Taking everything into account, ZETA scores 5 out of 10 in our fundamental rating. ZETA was compared to 280 industry peers in the Software industry. While ZETA has a great health rating, there are worries on its profitability. ZETA is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
ZETA had positive earnings in the past year.
In the past year ZETA had a positive cash flow from operations.
In the past 5 years ZETA always reported negative net income.
ZETA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZETA has a Return On Assets of -13.84%. This is in the lower half of the industry: ZETA underperforms 66.67% of its industry peers.
ZETA has a worse Return On Equity (-25.33%) than 60.22% 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
ZETA has a worse Gross Margin (60.26%) than 60.57% of its industry peers.
In the last couple of years the Gross Margin of ZETA has grown nicely.
The Profit Margin and Operating Margin are not available for ZETA so they could not be analyzed.
| 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.
ZETA has more shares outstanding than it did 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 6.59. This indicates that ZETA is financially healthy and has little risk of bankruptcy at the moment.
ZETA's Altman-Z score of 6.59 is fine compared to the rest of the industry. ZETA outperforms 69.18% of its industry peers.
ZETA has a debt to FCF ratio of 2.49. This is a good value and a sign of high solvency as ZETA would need 2.49 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.49, ZETA is doing good in the industry, outperforming 64.52% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that ZETA is not too dependend on debt financing.
The Debt to Equity ratio of ZETA (0.41) is worse than 65.59% of its industry peers.
Although ZETA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 6.59 |
ROIC/WACCN/A
WACC11.8%
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 78.49% of the companies in the same industry.
ZETA has a Quick Ratio of 3.32. This indicates that ZETA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.32, ZETA is in the better half of the industry, outperforming 78.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 |
3. Growth
3.1 Past
The earnings per share for ZETA have decreased strongly by -57.03% in the last year.
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
ZETA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.88% yearly.
The Revenue is expected to grow by 20.98% on average over the next years. This is a very strong growth
EPS Next Y83.6%
EPS Next 2Y51.42%
EPS Next 3Y37.72%
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
Based on the Price/Earnings ratio of 34.05, the valuation of ZETA can be described as expensive.
Based on the Price/Earnings ratio, ZETA is valued a bit cheaper than 70.61% of the companies in the same industry.
ZETA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.29.
With a Price/Forward Earnings ratio of 23.34, ZETA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ZETA is valued a bit cheaper than 74.55% 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 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.05 | ||
| Fwd PE | 23.34 |
4.2 Price Multiples
ZETA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.42 | ||
| 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 37.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y51.42%
EPS Next 3Y37.72%
5. Dividend
5.1 Amount
ZETA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZETA GLOBAL HOLDINGS CORP-A
NYSE:ZETA (12/23/2024, 7:38:02 PM)
After market: 18.7274 0 (-0.01%)18.73
-0.67 (-3.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners65.09%
Inst Owner Change7.9%
Ins Owners3.49%
Ins Owner Change1.19%
Market Cap4.45B
Analysts82
Price Target39.31 (109.88%)
Short Float %8.54%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)10.11%
PT rev (3m)29.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.63%
EPS NY rev (1m)9.16%
EPS NY rev (3m)11.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.86%
Revenue NY rev (1m)4.7%
Revenue NY rev (3m)6.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.05 | ||
| Fwd PE | 23.34 | ||
| P/S | 4.93 | ||
| P/FCF | 56.42 | ||
| P/OCF | 37.97 | ||
| P/B | 9.37 | ||
| P/tB | 17 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.55
EY2.94%
EPS(NY)0.8
Fwd EY4.28%
FCF(TTM)0.33
FCFY1.77%
OCF(TTM)0.49
OCFY2.63%
SpS3.8
BVpS2
TBVpS1.1
PEG (NY)0.41
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 | 6.59 |
F-Score5
WACC11.8%
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 2Y51.42%
EPS Next 3Y37.72%
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 Year130.98%
EBIT Next 3Y53.71%
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