-0.04 | -1.30%
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 ($mil) | 263.59 | 320.97 |
| EBITDA ($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. ($mil) | 1269.47 | 1322.76 |
| Total Assets ($mil) | 2522.84 | 2605.95 |
| Total Debt ($mil) | 100.0 | 0.0 |
| Equity ($mil) | 1863.5 | 1775.37 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 85.84 | 81.08 |
| EBITDA Margin | 12.36 | -17.22 |
| Operating Margin | 0.2 | -26.39 |
| Sales Turnover | 0.49 | 0.0 |
| Return on Assets | -4.75 | 0.0 |
| Return on Equity | -6.43 | 0.0 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 3.31 | 2.19 |
| Debt/Capital | 0.05 | 0.0 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 793.33 | 732.18 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.0 | -0.12 |
| Book value / share | 2.35 | 2.42 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3.0438592E7 | 2.686494E7 |
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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Book |
|
Earnings Growth |
|
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| 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. |
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| Price/Sales |
|
Sales Growth |
|
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| 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. |
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