ZNGA : NASDAQ : Technology
$3.475 -0.015 | -0.43%
Today's Range: 3.4 - 3.51
Avg. Daily Volume: 9631100.0
05/26/17 - 12:01 PM ET

Financial Analysis


ZYNGA INC's gross profit margin for the first quarter of its fiscal year 2017 has decreased 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 3.40 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 6.92% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)194.28186.72
EBITDA ($mil)-0.1-13.57
EBIT ($mil)-8.98-24.39
Net Income ($mil)-9.47-26.56


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)731.82859.54
Total Assets ($mil)1832.091977.62
Total Debt ($mil)0.00.0
Equity ($mil)1560.631676.78


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin71.1875.19
EBITDA Margin-0.05-7.26
Operating Margin-4.62-13.06
Sales Turnover0.410.39
Return on Assets-4.97-5.13
Return on Equity-5.83-6.05
Debt Q1 FY17 Q1 FY16
Current Ratio3.544.93
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)886.85872.19
Div / share0.00.0
EPS-0.01-0.03
Book value / share1.761.92
Institutional Own % n/a n/a
Avg Daily Volume9521465.01.0431538E7

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 1.93 indicates a discount versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 9.02. 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 72.32   ZNGA 51.41 Peers 26.82

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 significant premium 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 30.91 Peers 42.49   ZNGA NA Peers 0.79

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ZNGA 1.93 Peers 9.02   ZNGA 0.00 Peers 87.54

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ZNGA 4.03 Peers 6.51   ZNGA -2.50 Peers 8.41

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

 

 

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