ZNGA : NASDAQ : Technology
$3.91 up 0.03 | 0.77%
Today's Range: 3.88 - 4.02
Avg. Daily Volume: 9503100.0
09/20/17 - 4:00 PM ET

Financial Analysis

ZYNGA INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. ZYNGA INC is extremely liquid. Currently, the Quick Ratio is 3.33 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 5.45% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.

Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)209.23181.74
EBITDA ($mil)13.71-8.45
EBIT ($mil)6.31-19.29
Net Income ($mil)5.09-4.45

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)750.16870.52
Total Assets ($mil)1857.391944.41
Total Debt ($mil)0.00.0
Equity ($mil)1576.911667.96

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin72.8775.09
EBITDA Margin6.55-4.65
Operating Margin3.01-10.61
Sales Turnover0.420.39
Return on Assets-4.39-4.07
Return on Equity-5.17-4.74
Debt Q2 FY17 Q2 FY16
Current Ratio3.445.06
Interest Expense0.00.0
Interest Coverage0.00.0

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)865.46882.09
Div / share0.00.0
Book value / share1.821.89
Institutional Own % n/a n/a
Avg Daily Volume9923263.01.2105977E7


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 2.07 indicates a discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 9.45. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ZNGA NM Peers 39.51   ZNGA 40.46 Peers 33.27

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.


Premium. 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 premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ZNGA 27.93 Peers 35.26   ZNGA NA Peers 1.17

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

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


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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ZNGA 2.07 Peers 9.45   ZNGA 0.00 Peers 42.80

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.


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

The growth rate for ZNGA is not available.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ZNGA 4.20 Peers 7.05   ZNGA 3.53 Peers 12.14

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.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ZNGA significantly trails its peers on the basis of sales growth



Latest Stock Upgrades/Downgrades