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

Fundamentals

Good value with reasonable growth potential.


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


Market Performance


7 Day Return

3.7%

ZAGG

0.7%

US Consumer Durables

1.3%

US Market


1 Year Return

-52.9%

ZAGG

33.5%

US Consumer Durables

5.9%

US Market

Return vs Industry: ZAGG underperformed the US Consumer Durables industry which returned 33.5% over the past year.

Return vs Market: ZAGG underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

ZAGGIndustryMarket
7 Day3.7%0.7%1.3%
30 Day-1.9%0.3%-1.9%
90 Day-17.8%4.8%-1.8%
1 Year-52.9%-52.9%35.3%33.5%8.3%5.9%
3 Year-17.1%-17.1%50.0%45.4%45.6%36.2%
5 Year10.7%10.7%38.9%30.4%66.1%47.9%

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

Undervalued: ZAGG ($6.35) is trading below our estimate of fair value ($27.9)

Significantly Undervalued: 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 (19.6x) compared to the Consumer Durables industry average (13.2x).

PE vs Market: ZAGG is poor value based on its PE Ratio (19.6x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ZAGG is good value based on its PB Ratio (1.2x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is ZAGG forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

23.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZAGG's forecast earnings growth (23.2% per year) is above the savings rate (2.7%).

Earnings vs Market: ZAGG's earnings (23.2% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: ZAGG's revenue (10.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ZAGG's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

22.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ZAGG's earnings have grown significantly by 22.2% per year over the past 5 years.

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 (-67.3%) over the past year, making it difficult to compare to the Consumer Durables industry average (13.5%).


Return on Equity

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


Return on Assets

ROA vs Industry: ZAGG's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: ZAGG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is ZAGG's financial position?


Financial Position Analysis

Short Term Liabilities: ZAGG's short term assets ($235.8M) exceeds its short term liabilities ($126.8M)

Long Term Liabilities: ZAGG's short term assets (235.8M) exceeds its long term liabilities (115.2M)


Debt to Equity History and Analysis

Debt Level: ZAGG's debt to equity ratio (62.4%) is considered high

Reducing Debt: ZAGG's debt to equity ratio has increased from 0.01% to 62.4% 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 well covered by EBIT (6x 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 2.473160x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

1.4yrs

Average management tenure


CEO

Chris Ahern (43yo)

1.6yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: ZAGG's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

52yo

Average Age

Experienced Board: ZAGG's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Brad Holiday (66yo)

    Senior Vice President of Finance and Strategic Projects

    • Tenure: 0.6yrs
    • Compensation: US$703.86k
  • Matt Smith

    Vice President of Corporate Development

    • Tenure: 2.6yrs
  • Chris Ahern (43yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: US$2.23m
  • Abby Barraclough

    General Counsel & Corporate Secretary

    • Tenure: 3.2yrs
  • Jim Kearns (58yo)

    Chief Operating Officer

    • Tenure: 1.2yrs
    • Compensation: US$694.67k
  • Taylor Smith (40yo)

    Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • Dan Maurer (62yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$151.67k
  • Cheryl Larabee (65yo)

    Chairperson & Lead Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$222.52k
  • P. Stubbs (51yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$154.67k
  • Mike Birch (52yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$25.89k
  • Chris Ahern (43yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: US$2.23m

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$184.514m
  • Shares outstanding: 29.08m
  • 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 sc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:57
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.