AIM:ZOO

Stock Analysis Report

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.

Snowflake

Fundamentals

Exceptional growth potential with adequate balance sheet.

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


Market Performance


7 Day Return

5.3%

ZOO

0.7%

GB Software

0.2%

GB Market


1 Year Return

-23.8%

ZOO

6.3%

GB Software

1.7%

GB Market

Return vs Industry: ZOO underperformed the UK Software industry which returned 6.3% over the past year.

Return vs Market: ZOO underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

ZOOIndustryMarket
7 Day5.3%0.7%0.2%
30 Day0.6%1.5%-1.7%
90 Day11.9%-9.3%-3.1%
1 Year-23.8%-23.8%12.5%6.3%6.7%1.7%
3 Year764.9%764.9%5.6%-11.9%17.7%3.1%
5 Year1003.4%1003.4%68.4%35.1%36.1%5.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZOO (£0.8) is trading below our estimate of fair value (£1.8)

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


Price To Earnings Ratio

PE vs Industry: ZOO is poor value based on its PE Ratio (47.3x) compared to the Software industry average (27.5x).

PE vs Market: ZOO is poor value based on its PE Ratio (47.3x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: ZOO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: ZOO is overvalued based on its PB Ratio (16.5x) compared to the GB Software industry average (3.3x).


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?

62.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZOO's forecast earnings growth (62% per year) is above the savings rate (1.2%).

Earnings vs Market: ZOO's earnings (62% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: ZOO's revenue (20.5% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: ZOO's revenue (20.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZOO's Return on Equity is forecast to be high in 3 years time (24.4%)


Next Steps

Past Performance

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

1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ZOO has become profitable over the past 5 years, growing earnings by 1.8% 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 (7%).


Return on Equity

High ROE: ZOO's Return on Equity (34.8%) is considered high.


Return on Assets

ROA vs Industry: ZOO has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: ZOO is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is ZOO Digital Group's financial position?


Financial Position Analysis

Short Term Liabilities: ZOO's short term assets ($9.9M) exceeds its short term liabilities ($7.4M)

Long Term Liabilities: ZOO's short term assets (9.9M) exceeds its long term liabilities (5.9M)


Debt to Equity History and Analysis

Debt Level: ZOO's debt to equity ratio (71.5%) is considered high

Reducing Debt: ZOO's debt to equity ratio has reduced from 107.1% to 71.5% over the past 5 years.

Debt Coverage: ZOO's debt is well covered by operating cash flow (38.6%).

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


Balance Sheet

Inventory Level: ZOO has a low level of unsold assets or inventory.

Debt Coverage by Assets: ZOO's debt is covered by short term assets (assets are 2.965360x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of ZOO Digital Group's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Stuart Green (54yo)

13.7yrs

Tenure

US$242,000

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 ($USD242.00K) is about average for companies of similar size in the UK market ($USD318.91K).

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


Management Age and Tenure

1.3yrs

Average Tenure

55yo

Average Age

Experienced Management: ZOO's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

54yo

Average Age

Experienced Board: ZOO's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: ZOO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$22,20001 Aug 19
Gillian Wilmot
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares30,000
Max PriceUS$0.74
BuyUS$11,05024 Apr 19
Phillip Blundell
EntityIndividual
Role
Member of the Board of Directors
CFO, Secretary & Director
Shares25,000
Max PriceUS$0.44
BuyUS$19,92206 Mar 19
Roger Jeynes
EntityIndividual
Shares30,416
Max PriceUS$0.66
SellUS$10,00006 Mar 19
Roger Jeynes
EntityIndividual
Shares15,267
Max PriceUS$0.66
BuyUS$16,25024 Jan 19
Phillip Blundell
EntityIndividual
Role
Member of the Board of Directors
CFO, Secretary & Director
Shares25,000
Max PriceUS$0.65

Ownership Breakdown


Management Team

  • Phill Blundell (58yo)

    CFO, Secretary & Director

    • Tenure: 1.2yrs
    • Compensation: US$222.91k
  • Gordon Doran (52yo)

    President

    • Tenure: 10.3yrs
    • Compensation: US$386.00k
  • Stuart Green (54yo)

    CEO & Executive Director

    • Tenure: 13.7yrs
    • Compensation: US$242.00k
  • Duncan Wain (56yo)

    Chief Operating Officer

    • Tenure: 0yrs
  • Karla Harrison

    Head of Revenue Operation

    • Tenure: 0yrs
  • Chris Reilly

    Vice President of Technical Services

    • Tenure: 0yrs
  • Brit Simpson

    Chief Technical Officer

    • Tenure: 1.8yrs
  • Norie Negishi

    Head of Operations & Business Development

    • Tenure: 0yrs
  • Laura Herbers

    Manager of HR & Accounting

    • Tenure: 0.8yrs
  • Kier Booth

    Head of Operations

    • Tenure: 0.8yrs

Board Members

  • Phill Blundell (58yo)

    CFO, Secretary & Director

    • Tenure: 1.2yrs
    • Compensation: US$222.91k
  • Gillian Wilmot (58yo)

    Independent Chairman

    • Tenure: 0.3yrs
  • Gordon Doran (52yo)

    President

    • Tenure: 10.3yrs
    • Compensation: US$386.00k
  • Stuart Green (54yo)

    CEO & Executive Director

    • Tenure: 13.7yrs
    • Compensation: US$242.00k
  • Mickey Kalifa (52yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: US$33.00k

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£60.169m
  • Shares outstanding: 74.51m
  • 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 Analysis2019/10/21 20:52
End of Day Share Price2019/10/21 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.