LSE:0QJQ

Stock Analysis Report

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Executive Summary

ZEAL Network SE engages in the online lottery business in Germany.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.

Share Price & News

How has ZEAL Network's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0QJQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

0QJQ

1.2%

GB Hospitality

1.2%

GB Market


1 Year Return

55.0%

0QJQ

-33.0%

GB Hospitality

-15.3%

GB Market

Return vs Industry: 0QJQ exceeded the UK Hospitality industry which returned -33.4% over the past year.

Return vs Market: 0QJQ exceeded the UK Market which returned -15.3% over the past year.


Shareholder returns

0QJQIndustryMarket
7 Day4.3%1.2%1.2%
30 Day13.5%-2.7%5.3%
90 Day25.3%-36.3%-15.9%
1 Year55.0%55.0%-31.6%-33.0%-11.2%-15.3%
3 Year30.6%18.9%-27.5%-34.6%-7.9%-19.3%
5 Year-19.5%-35.8%-10.3%-24.8%8.3%-15.6%

Price Volatility Vs. Market

How volatile is ZEAL Network's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ZEAL Network undervalued compared to its fair value and its price relative to the market?

363.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0QJQ (€30.25) is trading above our estimate of fair value (€27.58)

Significantly Below Fair Value: 0QJQ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0QJQ is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: 0QJQ is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: 0QJQ is unprofitable, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0QJQ is overvalued based on its PB Ratio (1.7x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

How is ZEAL Network forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

74.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0QJQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: 0QJQ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 0QJQ's is expected to become profitable in the next 3 years.

Revenue vs Market: 0QJQ's revenue (3.1% per year) is forecast to grow slower than the UK market (3.7% per year).

High Growth Revenue: 0QJQ's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0QJQ's Return on Equity is forecast to be low in 3 years time (2.4%).


Next Steps

Past Performance

How has ZEAL Network performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0QJQ is currently unprofitable.

Growing Profit Margin: 0QJQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 0QJQ is unprofitable, but has reduced losses over the past 5 years at a rate of 9.3% per year.

Accelerating Growth: Unable to compare 0QJQ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 0QJQ is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-10.9%).


Return on Equity

High ROE: 0QJQ has a negative Return on Equity (-1.24%), as it is currently unprofitable.


Next Steps

Financial Health

How is ZEAL Network's financial position?


Financial Position Analysis

Short Term Liabilities: 0QJQ's short term assets (€126.5M) exceed its short term liabilities (€56.8M).

Long Term Liabilities: 0QJQ's short term assets (€126.5M) exceed its long term liabilities (€63.8M).


Debt to Equity History and Analysis

Debt Level: 0QJQ is debt free.

Reducing Debt: 0QJQ had no debt 5 years ago.

Debt Coverage: 0QJQ has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 0QJQ has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is ZEAL Network's current dividend yield, its reliability and sustainability?

2.58%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 0QJQ's dividend (2.58%) is higher than the bottom 25% of dividend payers in the UK market (2.06%).

High Dividend: 0QJQ's dividend (2.58%) is low compared to the top 25% of dividend payers in the UK market (5.93%).


Stability and Growth of Payments

Stable Dividend: 0QJQ has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 0QJQ has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (936.9%), 0QJQ's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0QJQ's dividends in 3 years are not forecast to be well covered by earnings (267.4% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Helmut Becker (50yo)

4.75yrs

Tenure

€1,537,000

Compensation

Dr. Helmut Becker, Ph.D. has been the Chief Executive Officer at ZEAL Network SE since August 2015. He has also been its Member of Executive Board since June 1, 2013. Dr. Becker served as the Chief Marketi ...


CEO Compensation Analysis

Compensation vs Market: Helmut's total compensation ($USD1.67M) is above average for companies of similar size in the UK market ($USD1.23M).

Compensation vs Earnings: Helmut's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Helmut Becker
CEO & Member of Executive Board4.75yrs€1.54m0.096% 667.9k
Jonas Mattsson
CFO & Member of Executive Board5.25yrs€1.07m0.031% 217.4k
Frank Hoffmann
Investor Relations Managerno datano datano data
Sebastian Blohm
Global Head of External and Legal Affairs7.25yrsno datano data
Matt Drage
Head of Communicationsno datano datano data

5.3yrs

Average Tenure

50yo

Average Age

Experienced Management: 0QJQ's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carl Ulrich De-Maizière
Chairman of Supervisory Board0.92yr€100.00kno data
Peter Steiner
Vice Chairman of the Supervisory Board1.33yrs€174.00k0.022% 155.3k
Oliver Jaster
Member of Supervisory Board12.33yrs€66.00kno data
Marc Peters
Member of Supervisory Board0.92yr€24.00k4.46% 31.0m
Jens Schumann
Member of Supervisory Board8.83yrs€66.00k3.58% 24.8m
Thorsten Hehl
Member of Supervisory Board6.92yrs€65.00kno data

4.1yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 0QJQ's board of directors are considered experienced (4.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

ZEAL Network SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ZEAL Network SE
  • Ticker: 0QJQ
  • Exchange: LSE
  • Founded: 1999
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: €694.035m
  • Shares outstanding: 22.35m
  • Website: https://www.zealnetwork.de

Number of Employees


Location

  • ZEAL Network SE
  • Straßenbahnring 11
  • Hamburg
  • 20251
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TIMADB (Deutsche Boerse AG)YesCommon StockDEEUROct 2005
TIMAXTRA (XETRA Trading Platform)YesCommon StockDEEUROct 2005
0QJQLSE (London Stock Exchange)YesCommon StockGBEUROct 2005
TIMSWX (SIX Swiss Exchange)YesCommon StockCHCHFOct 2005

Biography

ZEAL Network SE engages in the online lottery business in Germany. It operates through Lottery Brokerage and Lottovate segments. The company’s product includes Lotto 6aus49, Spiel 77, Super 6, EuroJackpot, GlücksSpirale, Keno, lotto clubs, instant lotteries, and Deutsche Fernsehlotterie. It is also involved in Lotto24, an online lottery brokerage business; and provides online operation of the lottery games for charitable organizations, such as ONCE, and digital services to business partners and state lotteries, as well as operates licensed lotteries through Lottovate. The company was formerly known as Tipp24 SE and changed its name to ZEAL Network SE in November 2014. ZEAL Network SE was founded in 1999 and is headquartered in Hamburg, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/24 22:14
End of Day Share Price2020/05/18 00:00
Earnings2020/03/31
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.