ZUORA INC - CLASS A (ZUO) Stock Fundamental Analysis
NYSE:ZUO - New York Stock Exchange, Inc. - US98983V1061 - Common Stock - Currency: USD
ZUO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. ZUO has a bad profitability rating. Also its financial health evaluation is rather negative. ZUO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ZUO had positive earnings in the past year.
ZUO had a positive operating cash flow in the past year.
In the past 5 years ZUO always reported negative net income.
In multiple years ZUO reported negative operating cash flow during the last 5 years.
1.2 Ratios
ZUO has a Return On Assets of -8.63%. This is comparable to the rest of the industry: ZUO outperforms 41.67% of its industry peers.
ZUO's Return On Equity of -40.16% is on the low side compared to the rest of the industry. ZUO is outperformed by 65.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.63% | ||
| ROE | -40.16% | ||
| ROIC | N/A |
ROA(3y)-20.14%
ROA(5y)-19.7%
ROE(3y)-104.33%
ROE(5y)-81.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 67.42%, ZUO is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ZUO has grown nicely.
ZUO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 67.42% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.86%
GM growth 5Y5.53%
2. Health
2.1 Basic Checks
ZUO does not have a ROIC to compare to the WACC, probably because it is not profitable.
ZUO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ZUO has been increased compared to 5 years ago.
ZUO has a worse debt/assets ratio than last year.
2.2 Solvency
ZUO has an Altman-Z score of 0.87. This is a bad value and indicates that ZUO is not financially healthy and even has some risk of bankruptcy.
ZUO has a Altman-Z score of 0.87. This is in the lower half of the industry: ZUO underperforms 66.67% of its industry peers.
The Debt to FCF ratio of ZUO is 5.17, which is a neutral value as it means it would take ZUO, 5.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ZUO (5.17) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.00 is on the high side and indicates that ZUO has dependencies on debt financing.
With a Debt to Equity ratio value of 2.00, ZUO is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 0.87 |
ROIC/WACCN/A
WACC13.51%
2.3 Liquidity
A Current Ratio of 2.62 indicates that ZUO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.62, ZUO is in the better half of the industry, outperforming 71.74% of the companies in the same industry.
ZUO has a Quick Ratio of 2.62. This indicates that ZUO is financially healthy and has no problem in meeting its short term obligations.
ZUO has a Quick ratio of 2.62. This is in the better half of the industry: ZUO outperforms 72.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 241.18% over the past year.
Looking at the last year, ZUO shows a small growth in Revenue. The Revenue has grown by 6.80% in the last year.
ZUO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.93% yearly.
EPS 1Y (TTM)241.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%77.78%
Revenue 1Y (TTM)6.8%
Revenue growth 3Y12.23%
Revenue growth 5Y12.93%
Sales Q2Q%6.45%
3.2 Future
Based on estimates for the next years, ZUO will show a very strong growth in Earnings Per Share. The EPS will grow by 30.13% on average per year.
ZUO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.73% yearly.
EPS Next Y72.16%
EPS Next 2Y32.08%
EPS Next 3Y30.13%
EPS Next 5YN/A
Revenue Next Year6.33%
Revenue Next 2Y6.68%
Revenue Next 3Y9.07%
Revenue Next 5Y18.73%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.22, which indicates a rather expensive current valuation of ZUO.
85.87% of the companies in the same industry are more expensive than ZUO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.39, ZUO is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.35, which indicates a rather expensive current valuation of ZUO.
ZUO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZUO is cheaper than 85.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.38, ZUO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
85.14% of the companies in the same industry are more expensive than ZUO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.54 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ZUO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ZUO's earnings are expected to grow with 30.13% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y32.08%
EPS Next 3Y30.13%
5. Dividend
5.1 Amount
No dividends for ZUO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZUORA INC - CLASS A
NYSE:ZUO (2/11/2025, 8:04:00 PM)
After market: 9.99 0 (0%)9.99
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners81.9%
Inst Owner Change-30.76%
Ins Owners1.5%
Ins Owner Change5.41%
Market Cap1.54B
Analysts49.09
Price Target10.2 (2.1%)
Short Float %2.62%
Short Ratio1.7
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)2
Avg EPS beat(2)69.42%
Min EPS beat(2)40.81%
Max EPS beat(2)98.02%
EPS beat(4)4
Avg EPS beat(4)83.96%
Min EPS beat(4)40.81%
Max EPS beat(4)137.62%
EPS beat(8)8
Avg EPS beat(8)363.75%
EPS beat(12)11
Avg EPS beat(12)244.75%
EPS beat(16)14
Avg EPS beat(16)191.94%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)1.46%
Revenue beat(4)1
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)1.46%
Revenue beat(8)3
Avg Revenue beat(8)0.03%
Revenue beat(12)5
Avg Revenue beat(12)0%
Revenue beat(16)9
Avg Revenue beat(16)0.54%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 17.35 | ||
| P/S | 3.39 | ||
| P/FCF | 21.54 | ||
| P/OCF | 18.36 | ||
| P/B | 8.34 | ||
| P/tB | 17.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.58
EY5.81%
EPS(NY)0.58
Fwd EY5.76%
FCF(TTM)0.46
FCFY4.64%
OCF(TTM)0.54
OCFY5.45%
SpS2.95
BVpS1.2
TBVpS0.57
PEG (NY)0.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.63% | ||
| ROE | -40.16% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 67.42% | ||
| FCFM | 15.75% |
ROA(3y)-20.14%
ROA(5y)-19.7%
ROE(3y)-104.33%
ROE(5y)-81.24%
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 3YN/A
ROICexcg growth 5YN/A
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 3Y4.86%
GM growth 5Y5.53%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 5.17 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 64.05% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | 0.87 |
F-Score5
WACC13.51%
ROIC/WACCN/A
Cap/Depr(3y)57.33%
Cap/Depr(5y)87.66%
Cap/Sales(3y)2.64%
Cap/Sales(5y)4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)241.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%77.78%
EPS Next Y72.16%
EPS Next 2Y32.08%
EPS Next 3Y30.13%
EPS Next 5YN/A
Revenue 1Y (TTM)6.8%
Revenue growth 3Y12.23%
Revenue growth 5Y12.93%
Sales Q2Q%6.45%
Revenue Next Year6.33%
Revenue Next 2Y6.68%
Revenue Next 3Y9.07%
Revenue Next 5Y18.73%
EBIT growth 1Y31.23%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year138.12%
EBIT Next 3Y49.23%
EBIT Next 5YN/A
FCF growth 1Y2125.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y987.37%
OCF growth 3YN/A
OCF growth 5YN/A