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Zynga Inc
ZNGA : NASDAQ : Technology
$2.28 -0.10 | -4.20%
Today's Range: 2.20 - 2.37
Avg. Daily Volume: 9,888,300
02/05/16 - 3:59 PM ET

Financial Analysis


ZYNGA INC's gross profit margin for the third quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ZYNGA INC is extremely liquid. Currently, the Quick Ratio is 5.29 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged 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.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)195.74176.61
EBITDA ($mil)2.11-33.01
EBIT ($mil)-9.18-52.29
Net Income ($mil)3.05-57.06


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)1069.93873.81
Total Assets ($mil)2237.782391.38
Total Debt ($mil)0.00.0
Equity ($mil)1920.431930.88


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin76.5580.69
EBITDA Margin1.07-18.69
Operating Margin-4.69-29.61
Sales Turnover0.340.28
Return on Assets-5.15-8.61
Return on Equity-6.01-10.66
Debt Q3 FY15 Q3 FY14
Current Ratio5.442.7
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)932.92902.01
Div / share0.00.0
EPS0.0-0.06
Book value / share2.062.14
Institutional Own % n/a n/a
Avg Daily Volume1.0202224E79572601.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 1.18 indicates a discount versus the S&P 500 average of 2.48 and a significant discount versus the industry average of 5.83. 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 40.38   ZNGA NM Peers 18.74

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.

 

Neutral. 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's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ZNGA 80.67 Peers 30.05   ZNGA NA Peers 0.70

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 1.18 Peers 5.83   ZNGA 43.48 Peers -14.67

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 2.93 Peers 5.11   ZNGA 14.42 Peers 7.81

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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