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Zegona Communications

Executive Summary

Zegona Communications plc, through its subsidiaries, provides telecommunication services in Northern Spain.


Snowflake Analysis

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.


Market Performance


7 Day Return

-1.7%

1ZG

-0.4%

DE Telecom

0.2%

DE Market


1 Year Return

10.3%

1ZG

3.6%

DE Telecom

4.5%

DE Market

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.


Shareholder returns

1ZGIndustryMarket
7 Day-1.7%-0.4%0.2%
30 Day14.6%3.5%6.4%
90 Day34.1%19.2%16.9%
1 Year18.4%10.3%7.9%3.6%6.8%4.5%
3 Year-16.7%-31.1%1.6%-11.3%3.0%-5.0%
5 Yearn/a0.3%-18.6%9.9%-4.8%

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

Valuation

Is Zegona Communications undervalued compared to its fair value and its price relative to the market?

6.32x

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).


Next Steps

Future Growth

How is Zegona Communications forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.1%

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.


Next Steps

Past Performance

How has Zegona Communications performed over the past 5 years?

85.6%

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.


Next Steps

Financial Health

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.


Balance Sheet


Next Steps

Dividend

What is Zegona Communications's current dividend yield, its reliability and sustainability?

3.98%

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.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Eamonn Francis O'Hare (57yo)

5.5yrs

Tenure

€1,251,978

Compensation

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.


Leadership Team

NamePositionTenureCompensationOwnership
Eamonn Francis O'Hare
Founder5.5yrs€1.25m0.93% 2.6m
Robert Samuelson
Founder5.5yrs€971.55k0.30% 828.2k
Howard Kalika
Founder & Investment Directorno datano data0.15% 416.6k
Dean Checkley
Chief Financial Officer3.42yrsno datano data
Menno Kremer
Investment Director4.33yrsno datano data

4.3yrs

Average Tenure

57yo

Average Age

Experienced Management: 1ZG's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eamonn Francis O'Hare
Founder5.5yrs€1.25m0.93% 2.6m
Robert Samuelson
Founder5.5yrs€971.55k0.30% 828.2k
Kjersti Wiklund
Independent Non Executive Director0.42yrno datano data
Ashley Martin
Independent Non-Executive Director3.42yrs€68.42k0.0048% 13.2k
Suzi Williams
Independent Non Executive Director0.42yrno datano data
Richard Williams
Independent Non-Executive Director4.67yrs€68.42k0.029% 78.8k

4.0yrs

Average Tenure

57yo

Average Age

Experienced Board: 1ZG's board of directors are considered experienced (4 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Zegona Communications plc's company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Zegona Communications plc
  • 20 Buckingham Street
  • London
  • Greater London
  • WC2N 6EF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZEGLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2015
1ZGBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMar 2015

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:47
End of Day Share Price2020/07/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.