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ZOO

ZOO Digital Group AIM:ZOO Stock Report

Last Price

UK£1.31

Market Cap

UK£116.0m

7D

-7.7%

1Y

9.2%

Updated

30 Sep, 2022

Data

Company Financials +
ZOO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ZOO Stock Overview

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

ZOO Digital Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ZOO Digital Group
Historical stock prices
Current Share PriceUK£1.31
52 Week HighUK£1.50
52 Week LowUK£0.96
Beta0.57
1 Month Change3.97%
3 Month Change28.43%
1 Year Change9.17%
3 Year Change69.03%
5 Year Change199.43%
Change since IPO-41.79%

Recent News & Updates

Jul 08
Need To Know: Analysts Are Much More Bullish On ZOO Digital Group plc (LON:ZOO) Revenues

Need To Know: Analysts Are Much More Bullish On ZOO Digital Group plc (LON:ZOO) Revenues

ZOO Digital Group plc ( LON:ZOO ) shareholders will have a reason to smile today, with the analysts making substantial...

Shareholder Returns

ZOOGB SoftwareGB Market
7D-7.7%-0.5%-1.7%
1Y9.2%-16.1%-15.1%

Return vs Industry: ZOO exceeded the UK Software industry which returned -17.5% over the past year.

Return vs Market: ZOO exceeded the UK Market which returned -16.2% over the past year.

Price Volatility

Is ZOO's price volatile compared to industry and market?
ZOO volatility
ZOO Average Weekly Movement6.2%
Software Industry Average Movement5.2%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.8%

Stable Share Price: ZOO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ZOO's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999488Stuart Greenhttps://www.zoodigital.com

ZOO Digital Group plc, through its subsidiaries, provides cloud-based localisation and digital distribution services in the United Kingdom and the United States. It operates through two segments, Media Production, and Software Solutions. The company offers localisation services, including subtitling, scripting, dubbing, audio postproduction, and audio description; media services, such as content preparation, digital packaging/post-production, and metadata preparation; and asset health check services.

ZOO Digital Group Fundamentals Summary

How do ZOO Digital Group's earnings and revenue compare to its market cap?
ZOO fundamental statistics
Market CapUK£115.96m
Earnings (TTM)UK£2.36m
Revenue (TTM)UK£63.18m

49.2x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZOO income statement (TTM)
RevenueUS$70.40m
Cost of RevenueUS$48.30m
Gross ProfitUS$22.11m
Other ExpensesUS$19.48m
EarningsUS$2.63m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.03
Gross Margin31.40%
Net Profit Margin3.73%
Debt/Equity Ratio0%

How did ZOO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ZOO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZOO?

Other financial metrics that can be useful for relative valuation.

ZOO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA21.6x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does ZOO's PE Ratio compare to its peers?

ZOO PE Ratio vs Peers
The above table shows the PE ratio for ZOO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average68.5x
GHT Gresham Technologies
105.7xn/aUK£117.5m
NET Netcall
97.9xn/aUK£114.6m
OMG Oxford Metrics
40.9xn/aUK£106.4m
QTX Quartix Technologies
29.6x7.0%UK£152.4m
ZOO ZOO Digital Group
49.2x42.0%UK£116.0m

Price-To-Earnings vs Peers: ZOO is good value based on its Price-To-Earnings Ratio (49.2x) compared to the peer average (68.5x).


Price to Earnings Ratio vs Industry

How does ZOO's PE Ratio compare vs other companies in the GB Software Industry?

Price-To-Earnings vs Industry: ZOO is expensive based on its Price-To-Earnings Ratio (49.2x) compared to the UK Software industry average (32.7x)


Price to Earnings Ratio vs Fair Ratio

What is ZOO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZOO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio49.2x
Fair PE Ratio40.4x

Price-To-Earnings vs Fair Ratio: ZOO is expensive based on its Price-To-Earnings Ratio (49.2x) compared to the estimated Fair Price-To-Earnings Ratio (40.4x).


Share Price vs Fair Value

What is the Fair Price of ZOO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZOO (£1.31) is trading below our estimate of fair value (£1.99)

Significantly Below Fair Value: ZOO is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


42.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZOO's forecast earnings growth (42% per year) is above the savings rate (0.9%).

Earnings vs Market: ZOO's earnings (42% per year) are forecast to grow faster than the UK market (8.9% per year).

High Growth Earnings: ZOO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZOO's revenue (16.6% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: ZOO's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZOO's Return on Equity is forecast to be low in 3 years time (17.5%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


1.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZOO has a high level of non-cash earnings.

Growing Profit Margin: ZOO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ZOO has become profitable over the past 5 years, growing earnings by 1.4% per year.

Accelerating Growth: ZOO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ZOO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (3.4%).


Return on Equity

High ROE: ZOO's Return on Equity (10%) is considered low.


Discover strong past performing companies

Financial Health

How is ZOO Digital Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ZOO's short term assets ($35.6M) exceed its short term liabilities ($29.7M).

Long Term Liabilities: ZOO's short term assets ($35.6M) exceed its long term liabilities ($8.4M).


Debt to Equity History and Analysis

Debt Level: ZOO is debt free.

Reducing Debt: ZOO has no debt compared to 5 years ago when its debt to equity ratio was 199.3%.

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

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


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

ZOO Digital Group Dividend Yield vs Market
How does ZOO Digital Group dividend yield compare to the market?
SegmentDividend Yield
Company (ZOO Digital Group)n/a
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Software)1.8%
Analyst forecast in 3 Years (ZOO Digital Group)n/a

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ZOO has not reported any payouts.


Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure


CEO

Stuart Green (57 yo)

22.67yrs

Tenure

US$615,000

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

Stuart Green's Compensation vs ZOO Digital Group Earnings
How has Stuart Green's remuneration changed compared to ZOO Digital Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022US$615kUS$310k

US$3m

Dec 31 2021n/an/a

-US$739k

Sep 30 2021n/an/a

-US$4m

Jun 30 2021n/an/a

-US$4m

Mar 31 2021US$473kUS$229k

-US$3m

Dec 31 2020n/an/a

-US$2m

Sep 30 2020n/an/a

-US$770k

Jun 30 2020n/an/a

-US$227k

Mar 31 2020US$292kUS$223k

US$316k

Dec 31 2019n/an/a

US$1m

Sep 30 2019n/an/a

US$2m

Jun 30 2019n/an/a

US$2m

Mar 31 2019US$242kUS$230k

US$2m

Dec 31 2018n/an/a

-US$2m

Sep 30 2018n/an/a

-US$5m

Jun 30 2018n/an/a

-US$5m

Mar 31 2018US$421kUS$175k

-US$5m

Dec 31 2017n/an/a

-US$2m

Sep 30 2017n/an/a

US$199k

Jun 30 2017n/an/a

US$495k

Mar 31 2017US$233kUS$162k

US$791k

Dec 31 2016n/an/a

US$196k

Sep 30 2016n/an/a

-US$399k

Jun 30 2016n/an/a

-US$593k

Mar 31 2016US$193kUS$182k

-US$787k

Compensation vs Market: Stuart's total compensation ($USD615.00K) is above average for companies of similar size in the UK market ($USD330.72K).

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


Leadership Team

Experienced Management: ZOO's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: ZOO'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.


Recent Insider Transactions

AIM:ZOO Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Apr 22BuyUK£5,900Phillip BlundellIndividual5,000UK£1.18
03 Dec 21SellUK£1,845,000Stuart GreenIndividual1,500,000UK£1.23

Ownership Breakdown

What is the ownership structure of ZOO?
Owner TypeNumber of SharesOwnership Percentage
Public Companies82,3240.09%
Employee Share Scheme214,9450.2%
Private Companies281,0950.3%
General Public11,395,74212.9%
Individual Insiders11,846,94413.4%
Institutions64,694,56473.1%

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


Top Shareholders

Top 25 shareholders own 81.14% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.95%
Stuart Green
11,458,972$15.0m-0.36%no data
12.76%
Herald Investment Management Limited
11,291,978$14.8m0%1.72%
9.3%
Hargreave Hale Limited, Asset Management Arm
8,234,427$10.8m-0.42%0.32%
8.04%
Invesco Ltd.
7,119,184$9.3m0%no data
4.71%
Canaccord Genuity Wealth (International) Limited
4,168,138$5.5m-2.31%0.11%
4.62%
Fleming Family & Partners Ltd.
4,085,489$5.4m0%0.23%
4.04%
Deka Investment GmbH
3,574,200$4.7m0%0.01%
3.78%
Sarasin & Partners LLP
3,349,872$4.4m0%0.04%
2.63%
Chelverton Asset Management Limited
2,328,815$3.1m0%0.2%
2.45%
Schroder Investment Management Limited
2,167,425$2.8m0%no data
2.16%
Janus Henderson Group plc
1,910,000$2.5m0%no data
1.72%
Lupus Alpha Asset Management GmbH
1,525,000$2.0m0%0.23%
1.69%
Handelsbanken Asset Management
1,500,000$2.0m0%no data
1.26%
Lloyds of London, Asset Management Arm
1,113,000$1.5m0%0.45%
1.13%
The Royal Bank Of Scotland plc, Asset Management Arm
998,719$1.3m0%0.12%
1.04%
IG Group Holdings Plc, Asset Management Arm
922,075$1.2m0%0.15%
1%
HBOS Investment Fund Managers Limited
886,260$1.2m0%0.01%
0.93%
Marlborough Fund Managers Limited
821,185$1.1m0%0.63%
0.92%
Barclays Bank PLC, Wealth and Investment Management Division
816,820$1.1m0%0.01%
0.92%
A J Bell Holdings Limited, Asset Management Arm
814,516$1.1m0%0.02%
0.81%
HSBC Global Asset Management (UK) Limited
720,018$943.2k0%no data
0.8%
Gore Browne Investment Management LLP
704,540$922.9k0%0.74%
0.52%
Rossie House Investment Management
462,500$605.9k0%0.33%
0.5%
Citigroup Inc.,Banking and Securities Investments
445,295$583.3k0%no data
0.45%
Mercator Asset Management, L.P.
400,000$524.0k0%1.52%

Company Information

ZOO Digital Group plc's 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
  • Implied Market Cap: UK£115.955m
  • Shares outstanding: 88.52m
  • Website: https://www.zoodigital.com

Number of Employees


Location

  • ZOO Digital Group plc
  • Castle House
  • Floor 2
  • Sheffield
  • South Yorkshire
  • S3 8LN
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.