ZI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ZI was profitable.
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 in line with its industry peers.
The Return On Equity of ZI (1.72%) is better than 63.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.01%, ZI is in line with its industry, 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 Operating Margin of 8.04%. This is in the better half of the industry: ZI outperforms 71.83% of its industry peers.
ZI's Operating Margin has been stable in the last couple of years.
ZI's Gross Margin of 84.37% is fine compared to the rest of the industry. ZI outperforms 78.87% of its industry peers.
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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

ZI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ZI has less shares outstanding than it did 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

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.
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.
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 (4.03) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.72 indicates that ZI is somewhat dependend on debt financing.
ZI has a worse Debt to Equity ratio (0.72) 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

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The earnings per share for ZI have decreased by -9.62% in the last year.
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%.
Measured over the past years, ZI shows a very strong growth in Revenue. The Revenue has been growing by 32.86% on average per year.

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

ZI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.33% yearly.
The Revenue is expected to grow by 4.58% on average over the next years.

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.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

ZI is valuated reasonably with a Price/Earnings ratio of 10.97.
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.
When comparing the Price/Earnings ratio of ZI to the average of the S&P500 Index (28.60), we can say ZI is valued rather cheaply.
The Price/Forward Earnings ratio is 9.86, which indicates a very decent valuation of ZI.
Based on the Price/Forward Earnings ratio, ZI is valued a bit cheaper than 77.46% of the companies in the same industry.
ZI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.

		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.
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.