Z1P

Zip CoASX:Z1P Stock Report

Market Cap

AU$3.7b

7D

-2.4%

1Y

9.8%

Updated

22 Sep, 2021

Data

Company Financials +
Z1P fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

Z1P Overview

Zip Co Limited provides digital retail finance and payments solutions to consumers, and small and medium sized merchants (SMEs) in Australia, the United Kingdom, the United States, New Zealand, Mexico, and Canada.

Zip Co Competitors

Humm Group

ASX:HUM

AU$391.2m

MoneyMe

ASX:MME

AU$342.0m

Plenti Group

ASX:PLT

AU$236.5m

Openpay Group

ASX:OPY

AU$166.1m

Price History & Performance

Summary of all time highs, changes and price drops for Zip Co
Historical stock prices
Current Share PriceAU$6.51
52 Week HighAU$4.96
52 Week LowAU$14.53
Beta2.42
1 Month Change-11.07%
3 Month Change-20.90%
1 Year Change9.78%
3 Year Change463.64%
5 Year Change740.00%
Change since IPO2,184.21%

Recent News & Updates

Shareholder Returns

Z1PAU Consumer FinanceAU Market
7D-2.4%-3.6%-2.3%
1Y9.8%23.6%25.4%

Return vs Industry: Z1P underperformed the Australian Consumer Finance industry which returned 17.5% over the past year.

Return vs Market: Z1P underperformed the Australian Market which returned 23.7% over the past year.

Price Volatility

Is Z1P's price volatile compared to industry and market?
Z1P volatility
Z1P Beta2.42
Industry Beta1.97
Market Beta1

Stable Share Price: Z1P is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: Z1P's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20091,049Larry Diamondhttps://zip.co

Zip Co Limited provides digital retail finance and payments solutions to consumers, and small and medium sized merchants (SMEs) in Australia, the United Kingdom, the United States, New Zealand, Mexico, and Canada. The company operates through three segments: ZIP AU, Zip Global, and Zip Business. It offers credit and payment services to SMEs through online and in store.

Zip Co Fundamentals Summary

How do Zip Co's earnings and revenue compare to its market cap?
Z1P fundamental statistics
Market CapAU$3.66b
Earnings (TTM)-AU$653.10m
Revenue (TTM)AU$402.75m

9.1x

P/S Ratio

-5.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
Z1P income statement (TTM)
RevenueAU$402.75m
Cost of RevenueAU$259.17m
Gross ProfitAU$143.57m
ExpensesAU$796.67m
Earnings-AU$653.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.27
Gross Margin35.65%
Net Profit Margin-162.16%
Debt/Equity Ratio182.2%

How did Z1P perform over the long term?

See historical performance and comparison

Valuation

Is Zip Co undervalued compared to its fair value and its price relative to the market?

3.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate Z1P's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate Z1P's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: Z1P is unprofitable, so we can't compare its PE Ratio to the Australian Consumer Finance industry average.

PE vs Market: Z1P is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate Z1P's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: Z1P is overvalued based on its PB Ratio (3.1x) compared to the AU Consumer Finance industry average (2x).


Future Growth

How is Zip Co forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

94.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Z1P is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: Z1P is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: Z1P's is expected to become profitable in the next 3 years.

Revenue vs Market: Z1P's revenue (34.2% per year) is forecast to grow faster than the Australian market (5.6% per year).

High Growth Revenue: Z1P's revenue (34.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Z1P's Return on Equity is forecast to be low in 3 years time (4.1%).


Past Performance

How has Zip Co performed over the past 5 years?

-80.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Z1P is currently unprofitable.

Growing Profit Margin: Z1P is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Z1P is unprofitable, and losses have increased over the past 5 years at a rate of 80.6% per year.

Accelerating Growth: Unable to compare Z1P's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: Z1P is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (171.9%).


Return on Equity

High ROE: Z1P has a negative Return on Equity (-55.9%), as it is currently unprofitable.


Financial Health

How is Zip Co's financial position?


Financial Position Analysis

Short Term Liabilities: Z1P's short term assets (A$2.4B) exceed its short term liabilities (A$80.4M).

Long Term Liabilities: Z1P's short term assets (A$2.4B) exceed its long term liabilities (A$2.1B).


Debt to Equity History and Analysis

Debt Level: Z1P's debt to equity ratio (182.2%) is considered high.

Reducing Debt: Z1P's debt to equity ratio has reduced from 270.7% to 182.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable Z1P has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: Z1P is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 44.2% per year.


Dividend

What is Zip Co current dividend yield, its reliability and sustainability?

0.069%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate Z1P's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate Z1P's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if Z1P's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if Z1P's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of Z1P's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Larry Diamond

no data

Tenure

AU$819,834

Compensation

Mr. Larry Diamond serves as the Chief Executive Officer and Managing Director of Zip Co Limited (formerly known as zipMoney Limited). He co-founded Zip Co Limited. Mr. Diamond co-founded zipMoney in 2013 o...


CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD592.41K) is below average for companies of similar size in the Australian market ($USD1.83M).

Compensation vs Earnings: Larry's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: Z1P's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

Experienced Board: Z1P's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.4%.


Top Shareholders

Company Information

Zip Co Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Zip Co Limited
  • Ticker: Z1P
  • Exchange: ASX
  • Founded: 2009
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: AU$3.660b
  • Shares outstanding: 562.14m
  • Website: https://zip.co

Number of Employees


Location

  • Zip Co Limited
  • 10 Spring Street
  • Level 14
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 15:24
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.