Taking everything into account, ZI scores 4 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ZI had positive earnings in the past year.
In the past year ZI had a positive cash flow from operations.
Of the past 5 years ZI 4 years were profitable.
In the past 5 years ZI always reported a positive cash flow from operatings.

1.2 Ratios

ZI has a Return On Assets (0.45%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 1.72%, ZI is doing good in the industry, outperforming 63.38% of the companies in the same industry.
ZI has a Return On Invested Capital (1.01%) which is in line with its industry peers.
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

With a Profit Margin value of 2.40%, ZI perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
In the last couple of years the Profit Margin of ZI has declined.
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 has a Gross Margin of 84.37%. This is in the better half 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
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

ZI has an Altman-Z score of 0.71. This is a bad value and indicates that ZI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ZI (0.71) is worse than 60.56% 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.
The Debt to FCF ratio of ZI (4.03) is comparable to the rest of the 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

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 worse Current ratio (0.69) than 87.32% 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.
ZI's Quick ratio of 0.69 is on the low side compared to the rest of the industry. ZI is outperformed by 85.92% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.69
Quick Ratio	0.69

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WACC

Debt/Equity

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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.
Looking at the last year, ZI shows a decrease in Revenue. The Revenue has decreased by -2.03% in the last year.
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

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 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

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.97, which indicates a very decent valuation of ZI.
78.87% of the companies in the same industry are more expensive than ZI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. ZI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.86, the valuation of ZI can be described as reasonable.
Based on the Price/Forward Earnings ratio, ZI is valued a bit cheaper than 77.46% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ZI to the average of the S&P500 Index (24.32), we can say ZI is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.97
Fwd PE	9.86

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZI indicates a somewhat cheap valuation: ZI is cheaper than 73.24% of the companies listed in the same industry.