Zegona Communications plc, through its subsidiaries, provides telecommunication services in Northern Spain.
Fair value with acceptable track record.
Share Price & News
How has Zegona Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1ZG's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 1ZG exceeded the German Telecom industry which returned 3.6% over the past year.
Return vs Market: 1ZG exceeded the German Market which returned 4.5% over the past year.
Price Volatility Vs. Market
How volatile is Zegona Communications's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Zegona Communications undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 1ZG (€1.18) is trading above our estimate of fair value (€0.85)
Significantly Below Fair Value: 1ZG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 1ZG is good value based on its PE Ratio (6.3x) compared to the XE Telecom industry average (19.3x).
PE vs Market: 1ZG is good value based on its PE Ratio (6.3x) compared to the German market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 1ZG's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 1ZG is good value based on its PB Ratio (0.8x) compared to the DE Telecom industry average (1.3x).
How is Zegona Communications forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Telecom industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Zegona Communications has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
- Examine whether Zegona Communications is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Zegona Communications competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Telecom industry.
How has Zegona Communications performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1ZG has a large one-off gain of €27.6M impacting its December 31 2019 financial results.
Growing Profit Margin: Insufficient data to determine if 1ZG's profit margins have improved over the past year.
Past Earnings Growth Analysis
Earnings Trend: 1ZG's earnings have grown significantly by 85.6% per year over the past 5 years.
Accelerating Growth: 1ZG's earnings growth over the past year (324.2%) exceeds its 5-year average (85.6% per year).
Earnings vs Industry: 1ZG earnings growth over the past year (324.2%) exceeded the Telecom industry 9.9%.
Return on Equity
High ROE: 1ZG's Return on Equity (12%) is considered low.
How is Zegona Communications's financial position?
Financial Position Analysis
Short Term Liabilities: 1ZG's short term assets (€31.1M) exceed its short term liabilities (€2.6M).
Long Term Liabilities: 1ZG's short term assets (€31.1M) exceed its long term liabilities (€11.6M).
Debt to Equity History and Analysis
Debt Level: 1ZG's debt to equity ratio (3.3%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if 1ZG's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: 1ZG's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if 1ZG's interest payments on its debt are well covered by EBIT.
What is Zegona Communications's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1ZG's dividend (3.98%) is higher than the bottom 25% of dividend payers in the German market (1.24%).
High Dividend: 1ZG's dividend (3.98%) is in the top 25% of dividend payers in the German market (3.77%)
Stability and Growth of Payments
Stable Dividend: 1ZG has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 1ZG has only been paying a dividend for 4 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.7%), 1ZG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Eamonn Francis O'Hare (57yo)
Mr. Eamonn Francis O'Hare is the Founder of Zegona Communications plc and has been its Chairman and Chief Executive Officer since January 19, 2015. Mr. O'Hare has been Proprietary Director of Euskaltel, S. ...
CEO Compensation Analysis
Compensation vs Market: Eamonn's total compensation ($USD1.43M) is above average for companies of similar size in the German market ($USD1.03M).
Compensation vs Earnings: Eamonn's compensation has increased by more than 20% in the past year.
|Founder & Investment Director||no data||no data||0.15% €416.6k|
|Chief Financial Officer||3.42yrs||no data||no data|
|Investment Director||4.33yrs||no data||no data|
Experienced Management: 1ZG's management team is considered experienced (4.3 years average tenure).
|Independent Non Executive Director||0.42yr||no data||no data|
|Independent Non-Executive Director||3.42yrs||€68.42k||0.0048% €13.2k|
|Independent Non Executive Director||0.42yr||no data||no data|
|Independent Non-Executive Director||4.67yrs||€68.42k||0.029% €78.8k|
Experienced Board: 1ZG's board of directors are considered experienced (4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 1ZG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Zegona Communications plc's company bio, employee growth, exchange listings and data sources
- Name: Zegona Communications plc
- Ticker: 1ZG
- Exchange: BST
- Founded: 1995
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: UK£251.103m
- Listing Market Cap: UK£276.136m
- Shares outstanding: 219.30m
- Website: https://www.zegona.com
Number of Employees
- Zegona Communications plc
- 20 Buckingham Street
- Greater London
- WC2N 6EF
- United Kingdom
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ZEG||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||GBP||Mar 2015|
|1ZG||BST (Boerse-Stuttgart)||Yes||Ordinary Shares||DE||EUR||Mar 2015|
Zegona Communications plc, through its subsidiaries, provides telecommunication services in Northern Spain. It serves approximately 715,000 residential customers and companies. The company is also involved in financing business. Zegona Communications plc was founded in 1995 and is based in London, the United Kingdom.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/14 21:47|
|End of Day Share Price||2020/07/14 00:00|
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.