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 Analysis

High growth potential with proven track record.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.1%

ZOO

4.5%

GB Software

3.9%

GB Market


1 Year Return

12.1%

ZOO

-18.8%

GB Software

-22.4%

GB Market

Return vs Industry: ZOO exceeded the UK Software industry which returned -18.8% over the past year.

Return vs Market: ZOO exceeded the UK Market which returned -23% over the past year.


Shareholder returns

ZOOIndustryMarket
7 Day32.1%4.5%3.9%
30 Day19.4%-15.6%-16.1%
90 Day-13.3%-23.0%-26.1%
1 Year12.1%12.1%-13.5%-18.8%-18.2%-22.4%
3 Year377.4%377.4%-12.9%-26.9%-11.7%-23.1%
5 Year404.5%404.5%18.1%-3.2%1.9%-21.5%

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?

23.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZOO (£0.56) is trading above our estimate of fair value (£0.55)

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


Price To Earnings Ratio

PE vs Industry: ZOO is good value based on its PE Ratio (23.1x) compared to the Software industry average (25.1x).

PE vs Market: ZOO is poor value based on its PE Ratio (23.1x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: ZOO is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ZOO is overvalued based on its PB Ratio (9.9x) compared to the GB Software industry average (2.4x).


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?

40.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZOO's forecast earnings growth (40.8% per year) is above the savings rate (0.5%).

Earnings vs Market: ZOO's earnings (40.8% per year) are forecast to grow faster than the UK market (15.5% per year).

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

Revenue vs Market: ZOO's revenue (27.5% per year) is forecast to grow faster than the UK market (2.3% per year).

High Growth Revenue: ZOO's revenue (27.5% per year) is forecast to grow faster 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?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZOO has high quality 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 14.6% 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 (6.8%).


Return on Equity

High ROE: ZOO's Return on Equity (42.6%) is considered outstanding.


Next Steps

Financial Health

How is ZOO Digital Group's financial position?


Financial Position Analysis

Short Term Liabilities: ZOO's short term assets ($8.8M) exceed its short term liabilities ($7.1M).

Long Term Liabilities: ZOO's short term assets ($8.8M) exceed its long term liabilities ($8.1M).


Debt to Equity History and Analysis

Debt Level: ZOO's debt to equity ratio (67.2%) is considered high.

Reducing Debt: ZOO's debt to equity ratio has reduced from 99% to 67.2% over the past 5 years.


Balance Sheet

Inventory Level: ZOO has a high level of physical assets or inventory.

Debt Coverage by Assets: ZOO's debt is covered by short term assets (assets are 2.5x debt).


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: ZOO is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: ZOO is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is ZOO Digital Group's 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 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.


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?

1.6yrs

Average management tenure


CEO

Stuart Green (54yo)

14s

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 ($USD242.00K) is about average for companies of similar size in the UK market ($USD335.89K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Green
CEO & Executive Director14yrsUS$242.00k15.77% $6.5m
Gordon Doran
President10.67yrsUS$386.00k0.0081% $3.3k
Phillip Blundell
CFO, Secretary & Director1.58yrsUS$222.91k0.067% $27.7k
Duncan Wain
Chief Operating Officerno datano datano data
Laura Herbers
Manager of HR & Accounting1.17yrsno datano data
Chris Reilly
Vice President of Technical Servicesno datano datano data
Karla Harrison
Head of Revenue Operationno datano datano data
Gareth Simpson
Chief Technical Officer2.17yrsno datano data
Kier Booth
Head of Operations1.17yrsno datano data
Craig Pepe
Executive Director of Sales - North America1.58yrsno datano data

1.6yrs

Average Tenure

55yo

Average Age

Experienced Management: ZOO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stuart Green
CEO & Executive Director14yrsUS$242.00k15.77% $6.5m
Gordon Doran
President10.67yrsUS$386.00k0.0081% $3.3k
Phillip Blundell
CFO, Secretary & Director1.58yrsUS$222.91k0.067% $27.7k
Gillian Wilmot
Independent Chairman0.67yrno data0.042% $17.5k
Maneck Kalifa
Independent Non-Executive Director2.42yrsUS$33.00k0.067% $27.7k

2.4yrs

Average Tenure

54yo

Average Age

Experienced Board: ZOO's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

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£41.249m
  • Shares outstanding: 74.32m
  • 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: Localisation, Digital Packaging, and Software Solutions. The company offers subtitling, dubbing, scripting, subtitling for TV adverts, and closed captioning services, as well as localization of artwork and metadata, and editing of compliance; and packs and distributes TV and movie content. Its cloud platforms include ZOOsubs, a cloud-based platform for producing, managing, and converting subtitles and captions; ZOOdubs, a cloud-based platform for offering dubbing services; ZOOscreen, a platform for screening, sharing, and showcasing TV and movie content; ZOOcore, a workflow management platform for managing projects and people; ZOOhive, a platform for preparing and repackaging assets for various digital distribution channels; and ZOOvault, a central place to store, search, and download assets. The company also engages in the media production and technology development activities; and sells and distributes technology products. It serves studios, broadcasters, online retailers, and over-the-top distributors. ZOO Digital Group plc was incorporated in 1999 and is headquartered in Sheffield, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 21:15
End of Day Share Price2020/03/31 00:00
Earnings2019/09/30
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.