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ZYNGA INC - CL A (ZNGA) Stock Fundamental Analysis

NASDAQ:ZNGA - Nasdaq - US98986T1088 - Common Stock

8.18  -0.17 (-2.04%)

After market: 8.17 -0.01 (-0.12%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to ZNGA. ZNGA was compared to 71 industry peers in the Entertainment industry. ZNGA may be in some trouble as it scores bad on both profitability and health. ZNGA is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year ZNGA was profitable.
ZNGA Yearly Net Income VS EBIT VS OCF VS FCFZNGA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 200M -200M 400M -400M

1.2 Ratios

Industry RankSector Rank
ROA -1.8%
ROE N/A
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ZNGA Yearly ROA, ROE, ROICZNGA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 -5 -10

1.3 Margins

Industry RankSector Rank
OM 5.5%
PM (TTM) -3.76%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
ZNGA Yearly Profit, Operating, Gross MarginsZNGA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 20 -20 40 60

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2

2. Health

2.1 Basic Checks

Compared to 1 year ago, ZNGA has more shares outstanding
Compared to 1 year ago, ZNGA has a worse debt to assets ratio.
ZNGA Yearly Shares OutstandingZNGA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B
ZNGA Yearly Total Debt VS Total AssetsZNGA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2B 4B 6B

2.2 Solvency

An Altman-Z score of 1.86 indicates that ZNGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
A Debt/Equity ratio of 0.53 indicates that ZNGA is somewhat dependend on debt financing.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF N/A
Altman-Z 1.86
ROIC/WACCN/A
WACCN/A
ZNGA Yearly LT Debt VS Equity VS FCFZNGA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 1B 2B 3B

2.3 Liquidity

ZNGA has a Current Ratio of 1.12. This is a normal value and indicates that ZNGA is financially healthy and should not expect problems in meeting its short term obligations.
A Quick Ratio of 1.12 indicates that ZNGA should not have too much problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 1.12
ZNGA Yearly Current Assets VS Current LiabilitesZNGA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B

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6

3. Growth

3.1 Past

The earnings per share for ZNGA have decreased strongly by -48.65% in the last year.
ZNGA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.49% yearly.
The Revenue has grown by 24.88% in the past year. This is a very strong growth!
Measured over the past years, ZNGA shows a very strong growth in Revenue. The Revenue has been growing by 30.45% on average per year.
EPS 1Y (TTM)-48.65%
EPS 3Y5.57%
EPS 5Y58.49%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)24.88%
Revenue growth 3Y45.61%
Revenue growth 5Y30.45%
Sales Q2Q%1.6%

3.2 Future

Based on estimates for the next years, ZNGA will show a very strong growth in Earnings Per Share. The EPS will grow by 29.48% on average per year.
ZNGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.32% yearly.
EPS Next Y98.98%
EPS Next 2Y54.39%
EPS Next 3Y39.54%
EPS Next 5Y29.48%
Revenue Next Year10.82%
Revenue Next 2Y10.31%
Revenue Next 3Y8.24%
Revenue Next 5Y7.32%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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.
ZNGA Yearly Revenue VS EstimatesZNGA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
ZNGA Yearly EPS VS EstimatesZNGA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.2 0.4 0.6

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 43.05, ZNGA can be considered very expensive at the moment.
ZNGA is valuated rather expensively when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.16, the valuation of ZNGA can be described as rather expensive.
When comparing the Price/Forward Earnings ratio of ZNGA to the average of the S&P500 Index (22.70), we can say ZNGA is valued slightly cheaper.
Industry RankSector Rank
PE 43.05
Fwd PE 17.16
ZNGA Price Earnings VS Forward Price EarningsZNGA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 24.63
ZNGA Per share dataZNGA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.5 1 1.5 2 2.5

4.3 Compensation for Growth

ZNGA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ZNGA's earnings are expected to grow with 39.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)0.74
EPS Next 2Y54.39%
EPS Next 3Y39.54%

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0

5. Dividend

5.1 Amount

No dividends for ZNGA!.
Industry RankSector Rank
Dividend Yield N/A

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ZYNGA INC - CL A

NASDAQ:ZNGA (5/20/2022, 8:25:41 PM)

After market: 8.17 -0.01 (-0.12%)

8.18

-0.17 (-2.04%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)05-09 2022-05-09/amc
Earnings (Next)08-03 2022-08-03
Inst Owners0.69%
Inst Owner Change0%
Ins Owners2.03%
Ins Owner Change0%
Market Cap9.30B
Analysts70.43
Price Target9.87 (20.66%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 43.05
Fwd PE 17.16
P/S 3.31
P/FCF N/A
P/OCF N/A
P/B 3.2
P/tB N/A
EV/EBITDA 24.63
EPS(TTM)0.19
EY2.32%
EPS(NY)0.48
Fwd EY5.83%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.47
BVpS2.56
TBVpSN/A
PEG (NY)0.43
PEG (5Y)0.74
Profitability
Industry RankSector Rank
ROA -1.8%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 5.5%
PM (TTM) -3.76%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.12
Quick Ratio 1.12
Altman-Z 1.86
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-48.65%
EPS 3Y5.57%
EPS 5Y58.49%
EPS Q2Q%-12.5%
EPS Next Y98.98%
EPS Next 2Y54.39%
EPS Next 3Y39.54%
EPS Next 5Y29.48%
Revenue 1Y (TTM)24.88%
Revenue growth 3Y45.61%
Revenue growth 5Y30.45%
Sales Q2Q%1.6%
Revenue Next Year10.82%
Revenue Next 2Y10.31%
Revenue Next 3Y8.24%
Revenue Next 5Y7.32%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A