NasdaqGS:ZAGG

Stock Analysis Report

Executive Summary

ZAGG Inc, together with its subsidiaries, designs, manufactures, and distributes mobile tech accessories for smartphones and tablets in the United States, Europe, and internationally.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has ZAGG's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZAGG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

ZAGG

-0.4%

US Consumer Durables

0.06%

US Market


1 Year Return

-29.6%

ZAGG

28.5%

US Consumer Durables

19.4%

US Market

Return vs Industry: ZAGG underperformed the US Consumer Durables industry which returned 28.5% over the past year.

Return vs Market: ZAGG underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

ZAGGIndustryMarket
7 Day1.1%-0.4%0.06%
30 Day5.4%3.4%1.1%
90 Day8.6%8.5%8.9%
1 Year-29.6%-29.6%30.2%28.5%21.9%19.4%
3 Year32.9%32.9%32.9%27.0%48.9%39.3%
5 Year6.5%6.5%37.6%28.6%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ZAGG 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: ZAGG ($7.83) is trading below our estimate of fair value ($42.43)

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


Price To Earnings Ratio

PE vs Industry: ZAGG is poor value based on its PE Ratio (69.2x) compared to the Consumer Durables industry average (13.6x).

PE vs Market: ZAGG is poor value based on its PE Ratio (69.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ZAGG is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: ZAGG is good value based on its PB Ratio (1.4x) compared to the US Consumer Durables industry average (1.5x).


Next Steps

Future Growth

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

28.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZAGG's forecast earnings growth (28.1% per year) is above the savings rate (1.7%).

Earnings vs Market: ZAGG's earnings (28.1% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: ZAGG's revenue (12.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ZAGG's revenue (12.2% 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 ZAGG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ZAGG performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZAGG has a large one-off loss of $2.2M impacting its September 30 2019 financial results.

Growing Profit Margin: ZAGG's current net profit margins (0.6%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: ZAGG has become profitable over the past 5 years, growing earnings by 17.3% per year.

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

Earnings vs Industry: ZAGG had negative earnings growth (-90.2%) over the past year, making it difficult to compare to the Consumer Durables industry average (7.3%).


Return on Equity

High ROE: ZAGG's Return on Equity (2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ZAGG's financial position?


Financial Position Analysis

Short Term Liabilities: ZAGG's short term assets ($296.3M) exceed its short term liabilities ($167.2M).

Long Term Liabilities: ZAGG's short term assets ($296.3M) exceed its long term liabilities ($122.5M).


Debt to Equity History and Analysis

Debt Level: ZAGG's debt to equity ratio (69.1%) is considered high.

Reducing Debt: ZAGG's debt to equity ratio has increased from 0.7% to 69.1% over the past 5 years.

Debt Coverage: ZAGG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ZAGG's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: ZAGG's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is ZAGG's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Chris Ahern (43yo)

1.9yrs

Tenure

US$2,225,415

Compensation

Mr. Chris Ahern has been the Chief Executive Officer and Director of ZAGG Inc. since March 7, 2018. Mr. Ahern served as the President of mophie and International at ZAGG Inc. since 2014 and was its Preside ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.23M) is above average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chris Ahern
CEO & Director1.9yrsUS$2.23m0.21% $505.0k
Jim Kearns
Chief Operating Officer1.5yrsUS$694.67k0.011% $26.7k
Bradley Holiday
Senior Vice President of Finance and Strategic Projects0.9yrsUS$703.86k0.36% $887.2k
Taylor Smith
Chief Financial Officer0.9yrsno data0.23% $551.7k
Abby Barraclough
General Counsel & Corporate Secretary3.5yrsno datano data
Matt Smith
Vice President of Corporate Development2.9yrsno datano data

1.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: ZAGG's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chris Ahern
CEO & Director1.9yrsUS$2.23m0.21% $505.0k
Daniel Maurer
Independent Director7.6yrsUS$151.67k0.25% $620.0k
Cheryl Larabee
Chairperson & Lead Independent Director7.5yrsUS$222.52k0.40% $979.1k
P. Stubbs
Independent Director4.6yrsUS$154.67k0.11% $277.6k
Michael Birch
Director1.3yrsUS$25.89k0.034% $82.7k

4.6yrs

Average Tenure

52yo

Average Age

Experienced Board: ZAGG's board of directors are considered experienced (4.6 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

Ownership Breakdown

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


Top Shareholders

Company Information

ZAGG Inc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ZAGG Inc
  • Ticker: ZAGG
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: US$243.453m
  • Shares outstanding: 29.09m
  • Website: https://www.zagg.com

Number of Employees


Location

  • ZAGG Inc
  • 910 West Legacy Center Way
  • Suite 500
  • Midvale
  • Utah
  • 84047
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZAGGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2007
ZA2DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2007

Biography

ZAGG Inc, together with its subsidiaries, designs, manufactures, and distributes mobile tech accessories for smartphones and tablets in the United States, Europe, and internationally. The company offers screen protection products; protective cases to protect device-specific mobile devices and tablets; power management products for tablets, smartphones, smartwatches, cameras, and other electronic mobile devices; power stations, wireless chargers, car and wall chargers, portable power products, and power wallets; earbuds, headphones, and speakers; and device specific keyboards and device agnostic keyboards under the ZAGG, InvisibleShield, mophie, IFROGZ, BRAVEN, Gear4, and HALO brands. It sells its products through indirect channels, including big box retailers, wireless retailers, domestic and international distributors, independent Apple retailers, university bookstores, and small independently owned consumer electronics stores, as well as directly to retailers or through distributors; and directly to consumers on its Websites at www.ZAGG.com, www.mophie.com, www.Gear4.com, and www.HALO.com. The company also sells its products to franchisees that operate cellphone repair locations, kiosks, and ZAGG branded stores in shopping malls and retail centers. ZAGG Inc is headquartered in Midvale, Utah. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:35
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.