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. ZI has a medium profitability rating, but doesn't score so well on its financial health evaluation. ZI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
ZI had positive earnings in 4 of the past 5 years.
In the past 5 years ZI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ZI (0.45%) is better than 62.86% of its industry peers.
ZI has a better Return On Equity (1.72%) than 67.14% of its industry peers.
ZI's Return On Invested Capital of 1.01% is in line compared to the rest of the industry. ZI outperforms 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZI is significantly below the industry average of 11.51%.
| 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
ZI has a Profit Margin of 2.40%. This is in the better half of the industry: ZI outperforms 67.14% of its industry peers.
ZI's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.04%, ZI is doing good in the industry, outperforming 75.71% of the companies in the same industry.
ZI's Operating Margin has been stable in the last couple of years.
ZI's Gross Margin of 84.37% is amongst the best of the industry. ZI outperforms 81.43% 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.
The number of shares outstanding for ZI has been reduced compared to 1 year ago.
Compared to 5 years ago, ZI has less shares outstanding
ZI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.61, we must say that ZI is in the distress zone and has some risk of bankruptcy.
ZI has a Altman-Z score of 0.61. This is comparable to the rest of the industry: ZI outperforms 47.14% of its industry peers.
The Debt to FCF ratio of ZI is 4.03, which is a neutral value as it means it would take ZI, 4.03 years of fcf income to pay off all of its debts.
ZI has a Debt to FCF ratio of 4.03. This is in the better half of the industry: ZI outperforms 67.14% of its industry peers.
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 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.13
WACC7.68%
2.3 Liquidity
ZI has a Current Ratio of 0.69. This is a bad value and indicates that ZI is not financially healthy enough and could expect problems in meeting its short term obligations.
ZI has a Current ratio of 0.69. This is amonst the worse of the industry: ZI underperforms 80.00% of its industry peers.
ZI has a Quick Ratio of 0.69. This is a bad value and indicates that ZI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.69, ZI is doing worse than 78.57% 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 -4.90%.
Measured over the past years, ZI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.70% on average per year.
The Revenue has decreased by -2.03% in the past year.
The Revenue has been growing by 32.86% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-4.9%
EPS 3Y18.7%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-2.03%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%-2.31%
3.2 Future
Based on estimates for the next years, ZI will show a small growth in Earnings Per Share. The EPS will grow by 6.33% on average per year.
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 Y1.86%
EPS Next 2Y2.88%
EPS Next 3Y4.59%
EPS Next 5Y6.33%
Revenue Next Year-0.56%
Revenue Next 2Y1.44%
Revenue Next 3Y3.21%
Revenue Next 5Y4.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 8.26, which indicates a very decent valuation of ZI.
Based on the Price/Earnings ratio, ZI is valued cheaper than 85.71% of the companies in the same industry.
ZI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of ZI.
ZI's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZI is cheaper than 87.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ZI to the average of the S&P500 Index (21.08), we can say ZI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
ZI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ZI is cheaper than 64.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZI indicates a rather cheap valuation: ZI is cheaper than 82.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.9 | ||
| EV/EBITDA | 20.72 |
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.
The decent profitability rating of ZI may justify a higher PE ratio.
PEG (NY)4.45
PEG (5Y)N/A
EPS Next 2Y2.88%
EPS Next 3Y4.59%
5. Dividend
5.1 Amount
ZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.01
+0.02 (+0.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.64%
Inst Owner Change0%
Ins Owners6.43%
Ins Owner Change-0.3%
Market Cap2.71B
Analysts55
Price Target12.35 (54.18%)
Short Float %5.01%
Short Ratio1.96
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)0.76%
PT rev (3m)4.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.86%
EPS NY rev (1m)7.1%
EPS NY rev (3m)6.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 8.11 | ||
| P/S | 2.23 | ||
| P/FCF | 8.9 | ||
| P/OCF | 7.34 | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.72 |
EPS(TTM)0.97
EY12.11%
EPS(NY)0.99
Fwd EY12.33%
FCF(TTM)0.9
FCFY11.23%
OCF(TTM)1.09
OCFY13.63%
SpS3.59
BVpS5
TBVpS-0.81
PEG (NY)4.45
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 | 0.61 |
F-Score5
WACC7.68%
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)-4.9%
EPS 3Y18.7%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y1.86%
EPS Next 2Y2.88%
EPS Next 3Y4.59%
EPS Next 5Y6.33%
Revenue 1Y (TTM)-2.03%
Revenue growth 3Y17.57%
Revenue growth 5Y32.86%
Sales Q2Q%-2.31%
Revenue Next Year-0.56%
Revenue Next 2Y1.44%
Revenue Next 3Y3.21%
Revenue Next 5Y4.58%
EBIT growth 1Y-63.83%
EBIT growth 3Y9.06%
EBIT growth 5Y30.94%
EBIT Next Year15.26%
EBIT Next 3Y10.53%
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%