Stock Under $10 with 50-100% upside potential - 14 Days FREE!

Zynga Inc Class A
ZNGA : NASDAQ : Technology

$3.40 -0.04 | -1.30%
Today's Range: 3.40 - 3.52
Avg. Daily Volume: 29,891,500
05/22/13 - 2:11 PM ET

Financial Analysis


ZYNGA INC's gross profit margin for the first quarter of its fiscal year 2013 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ZYNGA INC is extremely liquid. Currently, the Quick Ratio is 3.17 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.96% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.



Income Statement Q1 FY13 Q1 FY12
Net Sales ($mil)263.59320.97
EBITDA ($mil)32.59-55.29
EBIT ($mil)0.53-84.69
Net Income ($mil)4.13-85.35


Balance Sheet Q1 FY13 Q1 FY12
Cash & Equiv. ($mil)1269.471322.76
Total Assets ($mil)2522.842605.95
Total Debt ($mil)100.00.0
Equity ($mil)1863.51775.37


Profitability Q1 FY13 Q1 FY12
Gross Profit Margin85.8481.08
EBITDA Margin12.36-17.22
Operating Margin0.2-26.39
Sales Turnover0.490.0
Return on Assets-4.750.0
Return on Equity-6.430.0
Debt Q1 FY13 Q1 FY12
Current Ratio3.312.19
Debt/Capital0.050.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY13 Q1 FY12
Shares outstanding (mil)793.33732.18
Div / share0.00.0
EPS0.0-0.12
Book value / share2.352.42
Institutional Own % n/a n/a
Avg Daily Volume3.0438592E72.686494E7

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 1.43 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 7.07. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ZYNGA INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ZNGA NM Peers 27.69   ZNGA 19.05 Peers 20.11

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

ZNGA's P/E is negative making this valuation measure meaningless.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ZNGA is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ZNGA NM Peers 24.71   ZNGA NA Peers 0.76

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

ZNGA's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ZNGA 1.43 Peers 7.07   ZNGA 78.38 Peers -92.79

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ZNGA is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ZNGA is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ZNGA 2.18 Peers 8.67   ZNGA 30.33 Peers 16.46

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ZNGA is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ZNGA has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades

Brokerage Partners


Top Rated Stocks Top Rated Funds Top Rated ETFs