ZOOMINFO TECHNOLOGIES INC (ZI) Stock Fundamental Analysis
NASDAQ:ZI - Nasdaq - US98980F1049 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ZI. ZI was compared to 70 industry peers in the Interactive Media & Services industry. There are concerns on the financial health of ZI while its profitability can be described as average. ZI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ZI had positive earnings in the past year.
ZI had a positive operating cash flow in the past year.
Of the past 5 years ZI 4 years were profitable.
ZI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZI has a Return On Assets (0.45%) which is in line with its industry peers.
ZI has a better Return On Equity (1.72%) than 63.38% of its industry peers.
ZI has a Return On Invested Capital of 1.01%. This is comparable to the rest of the industry: ZI outperforms 56.34% of its industry peers.
ZI had an Average Return On Invested Capital over the past 3 years of 2.12%. This is significantly below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 1.72% | ||
| ROIC | 1.01% |
ROA(3y)0.97%
ROA(5y)0.79%
ROE(3y)3.19%
ROE(5y)2.49%
ROIC(3y)2.12%
ROIC(5y)1.92%
1.3 Margins
With a Profit Margin value of 2.40%, ZI perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
ZI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.04%, ZI is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
In the last couple of years the Operating Margin of ZI has remained more or less at the same level.
ZI's Gross Margin of 84.37% is fine compared to the rest of the industry. ZI outperforms 78.87% of its industry peers.
In the last couple of years the Gross Margin of ZI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.04% | ||
| PM (TTM) | 2.4% | ||
| GM | 84.37% |
OM growth 3Y-7.24%
OM growth 5Y-1.45%
PM growth 3Y-46.48%
PM growth 5YN/A
GM growth 3Y1.23%
GM growth 5Y2.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZI is destroying value.
Compared to 1 year ago, ZI has less shares outstanding
The number of shares outstanding for ZI has been reduced compared to 5 years ago.
ZI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that ZI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.71, ZI is doing worse than 60.56% of the companies in the same industry.
ZI has a debt to FCF ratio of 4.03. This is a neutral value as ZI would need 4.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.03, ZI is in line with its industry, outperforming 57.75% of the companies in the same industry.
ZI has a Debt/Equity ratio of 0.72. This is a neutral value indicating ZI is somewhat dependend on debt financing.
The Debt to Equity ratio of ZI (0.72) is worse than 73.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.13
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.69 indicates that ZI may have some problems paying its short term obligations.
ZI's Current ratio of 0.69 is on the low side compared to the rest of the industry. ZI is outperformed by 87.32% of its industry peers.
A Quick Ratio of 0.69 indicates that ZI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, ZI is doing worse than 85.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
ZI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.62%.
ZI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.70% yearly.
ZI shows a decrease in Revenue. In the last year, the revenue decreased by -2.03%.
The Revenue has been growing by 32.86% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-9.62%
EPS 3Y18.7%
EPS 5YN/A
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-2.03%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%-1.42%
3.2 Future
The Earnings Per Share is expected to grow by 6.33% on average over the next years.
Based on estimates for the next years, ZI will show a small growth in Revenue. The Revenue will grow by 4.58% on average per year.
EPS Next Y3.23%
EPS Next 2Y3.81%
EPS Next 3Y-0.24%
EPS Next 5Y6.33%
Revenue Next Year-0.24%
Revenue Next 2Y1.2%
Revenue Next 3Y2.06%
Revenue Next 5Y4.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 10.97, the valuation of ZI can be described as reasonable.
ZI's Price/Earnings ratio is a bit cheaper when compared to the industry. ZI is cheaper than 78.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of ZI to the average of the S&P500 Index (27.30), we can say ZI is valued rather cheaply.
A Price/Forward Earnings ratio of 9.86 indicates a reasonable valuation of ZI.
77.46% of the companies in the same industry are more expensive than ZI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ZI to the average of the S&P500 Index (21.76), we can say ZI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
ZI's Enterprise Value to EBITDA is on the same level as the industry average.
ZI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZI is cheaper than 73.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | 24.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.39
PEG (5Y)N/A
EPS Next 2Y3.81%
EPS Next 3Y-0.24%
5. Dividend
5.1 Amount
ZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.31
+0.96 (+10.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.64%
Inst Owner Change0.01%
Ins Owners6.43%
Ins Owner Change-0.34%
Market Cap3.49B
Analysts55
Price Target11.27 (9.31%)
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)18.21%
Min EPS beat(2)12.67%
Max EPS beat(2)23.75%
EPS beat(4)3
Avg EPS beat(4)3.59%
Min EPS beat(4)-29.75%
Max EPS beat(4)23.75%
EPS beat(8)7
Avg EPS beat(8)4.47%
EPS beat(12)11
Avg EPS beat(12)8.63%
EPS beat(16)15
Avg EPS beat(16)11.34%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.83%
Revenue beat(4)1
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-8.03%
Max Revenue beat(4)0.83%
Revenue beat(8)1
Avg Revenue beat(8)-2.63%
Revenue beat(12)4
Avg Revenue beat(12)-1.41%
Revenue beat(16)8
Avg Revenue beat(16)-0.14%
PT rev (1m)-8.78%
PT rev (3m)-2.6%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)1.44%
EPS NY rev (3m)8.54%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.86 | ||
| P/S | 2.87 | ||
| P/FCF | 11.46 | ||
| P/OCF | 9.45 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.97 |
EPS(TTM)0.94
EY9.12%
EPS(NY)1.05
Fwd EY10.14%
FCF(TTM)0.9
FCFY8.73%
OCF(TTM)1.09
OCFY10.59%
SpS3.59
BVpS5
TBVpS-0.81
PEG (NY)3.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 1.72% | ||
| ROCE | 1.68% | ||
| ROIC | 1.01% | ||
| ROICexc | 1.04% | ||
| ROICexgc | 1.59% | ||
| OM | 8.04% | ||
| PM (TTM) | 2.4% | ||
| GM | 84.37% | ||
| FCFM | 25.08% |
ROA(3y)0.97%
ROA(5y)0.79%
ROE(3y)3.19%
ROE(5y)2.49%
ROIC(3y)2.12%
ROIC(5y)1.92%
ROICexc(3y)2.27%
ROICexc(5y)2.09%
ROICexgc(3y)3.49%
ROICexgc(5y)4.68%
ROCE(3y)3.51%
ROCE(5y)3.19%
ROICexcg growth 3Y11.98%
ROICexcg growth 5YN/A
ROICexc growth 3Y11.22%
ROICexc growth 5Y-2.81%
OM growth 3Y-7.24%
OM growth 5Y-1.45%
PM growth 3Y-46.48%
PM growth 5YN/A
GM growth 3Y1.23%
GM growth 5Y2.11%
F-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.03 | ||
| Debt/EBITDA | 6.67 | ||
| Cap/Depr | 75.73% | ||
| Cap/Sales | 5.34% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 201.53% | ||
| Profit Quality | 1046.39% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.71 |
F-Score5
WACC8.07%
ROIC/WACC0.13
Cap/Depr(3y)47.17%
Cap/Depr(5y)41.73%
Cap/Sales(3y)3.37%
Cap/Sales(5y)3.36%
Profit Quality(3y)680.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.62%
EPS 3Y18.7%
EPS 5YN/A
EPS Q2Q%-11.54%
EPS Next Y3.23%
EPS Next 2Y3.81%
EPS Next 3Y-0.24%
EPS Next 5Y6.33%
Revenue 1Y (TTM)-2.03%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%-1.42%
Revenue Next Year-0.24%
Revenue Next 2Y1.2%
Revenue Next 3Y2.06%
Revenue Next 5Y4.58%
EBIT growth 1Y-63.83%
EBIT growth 3Y9.06%
EBIT growth 5Y30.94%
EBIT Next Year15.26%
EBIT Next 3Y10.71%
EBIT Next 5Y10.56%
FCF growth 1Y-25.44%
FCF growth 3Y3.35%
FCF growth 5Y58.13%
OCF growth 1Y-15.06%
OCF growth 3Y7.25%
OCF growth 5Y52.76%