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 mediocre 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

ZOO

-5.0%

GB Software

-5.1%

GB Market


1 Year Return

-34.9%

ZOO

-2.2%

GB Software

-20.0%

GB Market

Return vs Industry: ZOO underperformed the UK Software industry which returned -1.6% over the past year.

Return vs Market: ZOO underperformed the UK Market which returned -19.3% over the past year.


Shareholder returns

ZOOIndustryMarket
7 Day-2.7%-5.0%-5.1%
30 Day-9.1%-6.0%-4.3%
90 Day-10.6%-2.1%-4.5%
1 Year-34.9%-34.9%-0.9%-2.2%-17.0%-20.0%
3 Year-3.5%-3.5%-30.7%-39.5%-13.6%-24.3%
5 Year700.0%700.0%21.3%0.04%10.2%-14.6%

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?

15.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZOO (£0.55) is trading below our estimate of fair value (£0.65)

Significantly Below Fair Value: ZOO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ZOO is poor value based on its PE Ratio (168x) compared to the GB Software industry average (31.5x).

PE vs Market: ZOO is poor value based on its PE Ratio (168x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ZOO is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: ZOO is overvalued based on its PB Ratio (10x) compared to the GB Software industry average (3.2x).


Next Steps

Future Growth

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

54.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZOO's forecast earnings growth (54.4% per year) is above the savings rate (1.2%).

Earnings vs Market: ZOO's earnings (54.4% per year) are forecast to grow faster than the UK market (23.8% per year).

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

Revenue vs Market: ZOO's revenue (9.8% per year) is forecast to grow faster than the UK market (5.8% per year).

High Growth Revenue: ZOO's revenue (9.8% 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?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZOO has high quality earnings.

Growing Profit Margin: ZOO's current net profit margins (1.1%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: ZOO has become profitable over the past 5 years, growing earnings by 18% per year.

Accelerating Growth: ZOO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZOO had negative earnings growth (-80.7%) over the past year, making it difficult to compare to the Software industry average (3.3%).


Return on Equity

High ROE: ZOO's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is ZOO Digital Group's financial position?


Financial Position Analysis

Short Term Liabilities: ZOO's short term assets ($10.5M) do not cover its short term liabilities ($13.4M).

Long Term Liabilities: ZOO's short term assets ($10.5M) exceed its long term liabilities ($2.6M).


Debt to Equity History and Analysis

Debt Level: ZOO's debt to equity ratio (69.2%) is considered high.

Reducing Debt: ZOO's debt to equity ratio has reduced from 203.3% to 69.2% over the past 5 years.

Debt Coverage: ZOO's debt is well covered by operating cash flow (36.5%).

Interest Coverage: Insufficient data to determine if ZOO's interest payments on its debt are well covered by EBIT.


Balance Sheet


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?

2.3yrs

Average management tenure


CEO

Stuart Green (55 yo)

14.58yrs

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 ($USD292.00K) is about average for companies of similar size in the UK market ($USD349.56K).

Compensation vs Earnings: Stuart's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Green
CEO & Executive Director14.58yrsUS$292.00k15.77%
$ 6.4m
Gordon Doran
President11.25yrsUS$324.00k0.0081%
$ 3.3k
Phillip Blundell
CFO, Secretary & Director2.17yrsUS$222.00k0.067%
$ 27.5k
Duncan Wain
Chief Operating Officerno datano datano data
Chris Reilly
Vice President of Technical Servicesno datano datano data
Gareth Simpson
Chief Technical Officer2.75yrsno datano data
Karla Harrison
Head of Revenue Operationno datano datano data
Kier Booth
Head of Operations1.75yrsno datano data
Craig Pepe
Executive Director of Sales - North America2.17yrsno datano data

2.3yrs

Average Tenure

56yo

Average Age

Experienced Management: ZOO's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stuart Green
CEO & Executive Director14.58yrsUS$292.00k15.77%
$ 6.4m
Gordon Doran
President11.25yrsUS$324.00k0.0081%
$ 3.3k
Phillip Blundell
CFO, Secretary & Director2.17yrsUS$222.00k0.067%
$ 27.5k
Gillian Wilmot
Independent Chairman1.25yrsUS$5.00k0.042%
$ 17.3k
Maneck Kalifa
Independent Non-Executive Director3yrsUS$33.00k0.067%
$ 27.5k

3.0yrs

Average Tenure

55yo

Average Age

Experienced Board: ZOO's board of directors are considered experienced (3 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

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£40.890m
  • Shares outstanding: 74.34m
  • 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 Analysis2020/10/30 22:00
End of Day Share Price2020/10/30 00:00
Earnings2020/03/31
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.