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 71 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ZI was profitable.
ZI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ZI reported negative net income in multiple years.
In the past 5 years ZI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.14%, ZI perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
ZI's Return On Equity of 0.54% is fine compared to the rest of the industry. ZI outperforms 62.12% of its industry peers.
ZI has a Return On Invested Capital of 1.88%. This is comparable to the rest of the industry: ZI outperforms 56.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZI is significantly below the industry average of 12.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.54% | ||
| ROIC | 1.88% |
ROA(3y)1.38%
ROA(5y)-0.3%
ROE(3y)4.56%
ROE(5y)N/A
ROIC(3y)2.51%
ROIC(5y)2.6%
1.3 Margins
Looking at the Profit Margin, with a value of 0.74%, ZI is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
Looking at the Operating Margin, with a value of 11.26%, ZI is in the better half of the industry, outperforming 77.27% 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.
The Gross Margin of ZI (85.17%) is better than 80.30% of its industry peers.
In the last couple of years the Gross Margin of ZI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.26% | ||
| PM (TTM) | 0.74% | ||
| GM | 85.17% |
OM growth 3Y19.99%
OM growth 5Y0.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.38%
GM growth 5Y3.02%
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.
Compared to 5 years ago, ZI has more shares outstanding
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.
With a Altman-Z score value of 0.71, ZI perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
The Debt to FCF ratio of ZI is 3.63, which is a good value as it means it would take ZI, 3.63 years of fcf income to pay off all of its debts.
ZI has a Debt to FCF ratio of 3.63. This is in the better half of the industry: ZI outperforms 69.70% of its industry peers.
ZI has a Debt/Equity ratio of 0.73. This is a neutral value indicating ZI is somewhat dependend on debt financing.
ZI has a Debt to Equity ratio of 0.73. This is in the lower half of the industry: ZI underperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.23
WACC8.28%
2.3 Liquidity
ZI has a Current Ratio of 0.63. 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 0.63, ZI is not doing good in the industry: 86.36% of the companies in the same industry are doing better.
ZI has a Quick Ratio of 0.63. 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 0.63. This is amonst the worse of the industry: ZI underperforms 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
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%.
The Revenue has decreased by -0.25% in the past year.
ZI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 53.74% yearly.
EPS 1Y (TTM)-4.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%7.69%
Revenue 1Y (TTM)-0.25%
Revenue growth 3Y37.56%
Revenue growth 5Y53.74%
Sales Q2Q%-3.25%
3.2 Future
The Earnings Per Share is expected to grow by 1.94% 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 1.91% on average per year.
EPS Next Y-6.19%
EPS Next 2Y-4.81%
EPS Next 3Y-1.46%
EPS Next 5Y1.94%
Revenue Next Year-2.52%
Revenue Next 2Y-2.11%
Revenue Next 3Y-0.11%
Revenue Next 5Y1.91%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.95, which indicates a very decent valuation of ZI.
86.36% of the companies in the same industry are more expensive than ZI, based on the Price/Earnings ratio.
ZI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 10.44 indicates a reasonable valuation of ZI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZI indicates a rather cheap valuation: ZI is cheaper than 84.85% of the companies listed in the same industry.
ZI is valuated cheaply 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 | 9.95 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZI indicates a somewhat cheap valuation: ZI is cheaper than 63.64% of the companies listed in the same industry.
ZI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZI is cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.78 | ||
| EV/EBITDA | 20.27 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.81%
EPS Next 3Y-1.46%
5. Dividend
5.1 Amount
ZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.65
-0.25 (-2.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners80.25%
Inst Owner Change0.53%
Ins Owners6.04%
Ins Owner Change-0.44%
Market Cap3.31B
Analysts55.76
Price Target11.55 (19.69%)
Short Float %4.36%
Short Ratio1.79
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)1
Avg EPS beat(2)-3%
Min EPS beat(2)-29.75%
Max EPS beat(2)23.75%
EPS beat(4)3
Avg EPS beat(4)1.05%
Min EPS beat(4)-29.75%
Max EPS beat(4)23.75%
EPS beat(8)7
Avg EPS beat(8)4.84%
EPS beat(12)11
Avg EPS beat(12)10.63%
EPS beat(16)15
Avg EPS beat(16)11.75%
Revenue beat(2)0
Avg Revenue beat(2)-4.79%
Min Revenue beat(2)-8.03%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-3.29%
Min Revenue beat(4)-8.03%
Max Revenue beat(4)-1.11%
Revenue beat(8)0
Avg Revenue beat(8)-2.99%
Revenue beat(12)4
Avg Revenue beat(12)-1.16%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)-1.97%
PT rev (3m)0.63%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-16.72%
EPS NY rev (1m)0%
EPS NY rev (3m)6.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 10.44 | ||
| P/S | 2.71 | ||
| P/FCF | 9.78 | ||
| P/OCF | 8.51 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.27 |
EPS(TTM)0.97
EY10.05%
EPS(NY)0.92
Fwd EY9.58%
FCF(TTM)0.99
FCFY10.22%
OCF(TTM)1.13
OCFY11.75%
SpS3.56
BVpS4.86
TBVpS-0.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.54% | ||
| ROCE | 2.38% | ||
| ROIC | 1.88% | ||
| ROICexc | 1.93% | ||
| ROICexgc | 2.99% | ||
| OM | 11.26% | ||
| PM (TTM) | 0.74% | ||
| GM | 85.17% | ||
| FCFM | 27.73% |
ROA(3y)1.38%
ROA(5y)-0.3%
ROE(3y)4.56%
ROE(5y)N/A
ROIC(3y)2.51%
ROIC(5y)2.6%
ROICexc(3y)2.72%
ROICexc(5y)2.83%
ROICexgc(3y)4.17%
ROICexgc(5y)N/A
ROCE(3y)3.18%
ROCE(5y)3.29%
ROICexcg growth 3Y-25.31%
ROICexcg growth 5YN/A
ROICexc growth 3Y10.41%
ROICexc growth 5Y-4.14%
OM growth 3Y19.99%
OM growth 5Y0.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.38%
GM growth 5Y3.02%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.63 | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 60.43% | ||
| Cap/Sales | 4.13% | ||
| Interest Coverage | 3.05 | ||
| Cash Conversion | 176.11% | ||
| Profit Quality | 3764.44% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.71 |
F-Score6
WACC8.28%
ROIC/WACC0.23
Cap/Depr(3y)33.28%
Cap/Depr(5y)32.17%
Cap/Sales(3y)2.64%
Cap/Sales(5y)3.22%
Profit Quality(3y)410.28%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%7.69%
EPS Next Y-6.19%
EPS Next 2Y-4.81%
EPS Next 3Y-1.46%
EPS Next 5Y1.94%
Revenue 1Y (TTM)-0.25%
Revenue growth 3Y37.56%
Revenue growth 5Y53.74%
Sales Q2Q%-3.25%
Revenue Next Year-2.52%
Revenue Next 2Y-2.11%
Revenue Next 3Y-0.11%
Revenue Next 5Y1.91%
EBIT growth 1Y-45.63%
EBIT growth 3Y65.06%
EBIT growth 5Y54.96%
EBIT Next Year-8.33%
EBIT Next 3Y1.47%
EBIT Next 5Y4.72%
FCF growth 1Y5.97%
FCF growth 3Y38.78%
FCF growth 5Y59.79%
OCF growth 1Y5.7%
OCF growth 3Y36.87%
OCF growth 5Y58.26%