AIM:ZOO

Stock Analysis Report

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Executive Summary

ZOO Digital Group plc, through its subsidiaries, provides cloud-based localization and digital distribution services in the United Kingdom and the United States. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has ZOO Digital Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZOO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ZOO's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

3.5%

ZOO

2.4%

GB Software

-0.3%

GB Market


1 Year Return

9.6%

ZOO

-16.6%

GB Software

-7.9%

GB Market

Return vs Industry: ZOO exceeded the UK Software industry which returned -16.6% over the past year.

Return vs Market: ZOO exceeded the UK Market which returned -7.9% over the past year.


Shareholder returns

ZOOIndustryMarket
7 Day3.5%2.4%-0.3%
30 Day20.3%7.3%5.4%
90 Day33.3%-3.9%15.7%
1 Year9.6%9.6%-8.5%-16.6%-4.1%-7.9%
3 Year8.8%8.8%-26.9%-36.0%4.2%-8.5%
5 Year604.8%604.8%18.6%-3.6%45.0%12.1%

Long-Term Price Volatility Vs. Market

How volatile is ZOO Digital Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ZOO Digital Group undervalued compared to its fair value and its price relative to the market?

16.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ZOO (£0.74) is trading above our estimate of fair value (£0.48)

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


Price To Earnings Ratio

PE vs Industry: ZOO is unprofitable, so we can't compare its PE Ratio to the GB Software industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ZOO is overvalued based on its PB Ratio (16.2x) compared to the GB Software industry average (4.1x).


Next Steps

Future Growth

How is ZOO Digital Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

65.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZOO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

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

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

Revenue vs Market: ZOO's revenue (11.6% per year) is forecast to grow faster than the UK market (6.5% per year).

High Growth Revenue: ZOO's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ZOO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ZOO Digital Group performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZOO is currently unprofitable.

Growing Profit Margin: ZOO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZOO is unprofitable, but has reduced losses over the past 5 years at a rate of 13.6% per year.

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

Earnings vs Industry: ZOO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (-3.2%).


Return on Equity

High ROE: ZOO has a negative Return on Equity (-16.56%), as it is currently unprofitable.


Next Steps

Financial Health

How is ZOO Digital Group's financial position?


Financial Position Analysis

Short Term Liabilities: ZOO's short term assets ($11.3M) do not cover its short term liabilities ($11.6M).

Long Term Liabilities: ZOO's short term assets ($11.3M) exceed its long term liabilities ($6.8M).


Debt to Equity History and Analysis

Debt Level: ZOO's debt to equity ratio (87.1%) is considered high.

Reducing Debt: ZOO's debt to equity ratio has reduced from 196.6% to 87.1% 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 ZOO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ZOO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 42.3% per year.


Next Steps

Dividend

What is ZOO Digital Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ZOO'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 ZOO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZOO'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 ZOO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Stuart Green (55 yo)

14.92yrs

Tenure

US$292,000

Compensation

Dr. Stuart A. Green serves as Chief Executive Officer of ZOOtech Ltd. Dr. Green has been the Chief Executive Officer of Zoo Digital Group plc since February 2006. He is responsible for securing over 30 pat...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD292.00K) is about average for companies of similar size in the UK market ($USD335.42K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Green
CEO & Executive Director14.92yrsUS$292.00k15.76%
$ 8.6m
Gordon Doran
President11.5yrsUS$324.00k0.0081%
$ 4.4k
Phillip Blundell
CFO, Secretary & Director2.42yrsUS$222.00k0.10%
$ 54.8k
Duncan Wain
Chief Operating Officerno datano datano data
Chris Reilly
Vice President of Technical Servicesno datano datano data
Gareth Simpson
Chief Technical Officer3yrsno datano data
Karla Harrison
Head of Revenue Operationno datano datano data
Kier Booth
Head of Operations2yrsno datano data
Dave Concors
Head of Sound0.25yrno datano data
Katie Young
Head of Dubbing & Media Services0.75yrno datano data
Craig Pepe
Executive Director of Sales - North America2.42yrsno datano data

2.4yrs

Average Tenure

56yo

Average Age

Experienced Management: ZOO's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stuart Green
CEO & Executive Director14.92yrsUS$292.00k15.76%
$ 8.6m
Gordon Doran
President11.5yrsUS$324.00k0.0081%
$ 4.4k
Phillip Blundell
CFO, Secretary & Director2.42yrsUS$222.00k0.10%
$ 54.8k
Gillian Wilmot
Independent Chairman1.5yrsUS$5.00k0.042%
$ 23.0k
Maneck Kalifa
Independent Non-Executive Director3.25yrsUS$33.00k0.067%
$ 36.5k

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: ZOO's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ZOO 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

ZOO Digital Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ZOO Digital Group plc
  • Ticker: ZOO
  • Exchange: AIM
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£54.279m
  • Shares outstanding: 74.35m
  • Website: https://www.zoodigital.com

Number of Employees


Location

  • ZOO Digital Group plc
  • City Gate
  • 7th Floor
  • Sheffield
  • South Yorkshire
  • S1 4LW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZDGG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2004
ZOOAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2004
2ZDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2004

Biography

ZOO Digital Group plc, through its subsidiaries, provides cloud-based localization and digital distribution services in the United Kingdom and the United States. It operates through three segments: Localis...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 18:43
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.