10.31 USD
+0.96 (+10.27%)
10.28 USD
-0.03 (-0.29%)
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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ZI was profitable.
- ZI had a positive operating cash flow in the past year.
- ZI had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years ZI had a positive operating cash flow.
1.2 Ratios
- ZI's Return On Assets of 0.45% is in line compared to the rest of the industry. ZI outperforms 59.15% of its industry peers.
- Looking at the Return On Equity, with a value of 1.72%, ZI is in the better half of the industry, outperforming 63.38% of the companies in the same industry.
- With a Return On Invested Capital value of 1.01%, ZI perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ZI is significantly below the industry average of 13.70%.
| 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 comparable to the rest of the industry: ZI outperforms 59.15% of its industry peers.
- ZI's Profit Margin has declined in the last couple of years.
- ZI has a better Operating Margin (8.04%) than 71.83% of its industry peers.
- ZI's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 84.37%, ZI is doing good in the industry, outperforming 78.87% of the companies in the same industry.
- ZI's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZI is destroying value.
- ZI has less shares outstanding than it did 1 year ago.
- ZI has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ZI has a worse debt to assets ratio.
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.
- ZI's Altman-Z score of 0.71 is on the low side compared to the rest of the industry. ZI is outperformed by 60.56% of its industry peers.
- 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.
- ZI has a Debt to FCF ratio of 4.03. This is comparable to the rest of the industry: ZI outperforms 57.75% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that ZI is somewhat dependend on debt financing.
- ZI's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. ZI is outperformed by 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
- 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.
- With a Current ratio value of 0.69, ZI is not doing good in the industry: 87.32% of the companies in the same industry are doing better.
- 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.
- ZI has a Quick ratio of 0.69. This is amonst the worse of the industry: ZI underperforms 85.92% of its industry peers.
| 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%.
- 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.
- 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
- A Price/Earnings ratio of 10.97 indicates a reasonable valuation of ZI.
- Based on the Price/Earnings ratio, ZI is valued a bit cheaper than the industry average as 78.87% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.60. ZI is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 9.86, the valuation of ZI can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ZI indicates a somewhat cheap valuation: ZI is cheaper than 77.46% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, ZI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZI is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, ZI is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
| 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 an expensive valuation of the company.
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 |
ZOOMINFO TECHNOLOGIES INC / ZI FAQ
Can you provide the ChartMill fundamental rating for ZOOMINFO TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 4 / 10 to ZI.
Can you provide the valuation status for ZOOMINFO TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 6 / 10 to ZOOMINFO TECHNOLOGIES INC (ZI). This can be considered as Fairly Valued.
How profitable is ZOOMINFO TECHNOLOGIES INC (ZI) stock?
ZOOMINFO TECHNOLOGIES INC (ZI) has a profitability rating of 6 / 10.
How financially healthy is ZOOMINFO TECHNOLOGIES INC?
The financial health rating of ZOOMINFO TECHNOLOGIES INC (ZI) is 2 / 10.
What is the earnings growth outlook for ZOOMINFO TECHNOLOGIES INC?
The Earnings per Share (EPS) of ZOOMINFO TECHNOLOGIES INC (ZI) is expected to grow by 3.23% in the next year.