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ZVO

Zovio NasdaqGS:ZVO Stock Report

Last Price

US$0.31

Market Cap

US$10.5m

7D

-16.8%

1Y

-85.7%

Updated

18 Aug, 2022

Data

Company Financials +
ZVO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

ZVO Stock Overview

Zovio Inc operates as an education technology services company in the United States.

Zovio Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zovio
Historical stock prices
Current Share PriceUS$0.31
52 Week HighUS$2.78
52 Week LowUS$0.30
Beta0.86
1 Month Change-66.18%
3 Month Change-57.25%
1 Year Change-85.68%
3 Year Change-87.79%
5 Year Change-96.58%
Change since IPO-97.23%

Recent News & Updates

Aug 01

Zovio  Non-GAAP EPS of -$0.36, revenue of $51.38M

Zovio  press release (NASDAQ:ZVO): Q2 Non-GAAP EPS of -$0.36. Revenue of $51.38M (-25.8% Y/Y).

Jul 04
Health Check: How Prudently Does Zovio (NASDAQ:ZVO) Use Debt?

Health Check: How Prudently Does Zovio (NASDAQ:ZVO) Use Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

ZVOUS Consumer ServicesUS Market
7D-16.8%0.6%1.4%
1Y-85.7%-22.3%-8.4%

Return vs Industry: ZVO underperformed the US Consumer Services industry which returned -23.5% over the past year.

Return vs Market: ZVO underperformed the US Market which returned -9% over the past year.

Price Volatility

Is ZVO's price volatile compared to industry and market?
ZVO volatility
ZVO Average Weekly Movement17.7%
Consumer Services Industry Average Movement9.1%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: ZVO is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 18% a week.

Volatility Over Time: ZVO's weekly volatility has increased from 12% to 18% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19991,383Randy Hendrickshttps://www.zovio.com

Zovio Inc operates as an education technology services company in the United States. It partners with higher education institutions and employers to deliver various personalized solutions to help learners and leaders in achieving their aspirations. The company offers technology and academic services primarily relate to the educational infrastructure, including online course delivery and management, assessment, customer relations management, and other internal administrative systems; support services for curriculum and new program development, and faculty training and development; and technical support and assistance services with state compliance.

Zovio Fundamentals Summary

How do Zovio's earnings and revenue compare to its market cap?
ZVO fundamental statistics
Market CapUS$10.53m
Earnings (TTM)-US$40.93m
Revenue (TTM)US$230.00m

0.0x

P/S Ratio

-0.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZVO income statement (TTM)
RevenueUS$230.00m
Cost of RevenueUS$149.30m
Gross ProfitUS$80.70m
Other ExpensesUS$121.63m
Earnings-US$40.93m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.20
Gross Margin35.09%
Net Profit Margin-17.80%
Debt/Equity Ratio42.3%

How did ZVO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ZVO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZVO?

Other financial metrics that can be useful for relative valuation.

ZVO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.1x
Enterprise Value/EBITDA-0.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ZVO's PS Ratio compare to its peers?

ZVO PS Ratio vs Peers
The above table shows the PS ratio for ZVO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average5.1x
METX Meten Holding Group
0.1xn/aUS$10.2m
EEIQ Elite Education Group International
2.8xn/aUS$17.8m
CLEU China Liberal Education Holdings
2.5xn/aUS$9.9m
TLGN Ever Harvest International Group
15xn/aUS$8.1m
ZVO Zovio
0.05x3.8%US$10.5m

Price-To-Sales vs Peers: ZVO is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (5.1x).


Price to Earnings Ratio vs Industry

How does ZVO's PE Ratio compare vs other companies in the US Consumer Services Industry?

Price-To-Sales vs Industry: ZVO is good value based on its Price-To-Sales Ratio (0x) compared to the US Consumer Services industry average (1.6x)


Price to Sales Ratio vs Fair Ratio

What is ZVO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZVO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.05x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: ZVO is good value based on its Price-To-Sales Ratio (0x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


Share Price vs Fair Value

What is the Fair Price of ZVO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate ZVO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ZVO's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.8%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ZVO's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if ZVO's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if ZVO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZVO's revenue (3.8% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: ZVO's revenue (3.8% 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 ZVO's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Zovio performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-44.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZVO is currently unprofitable.

Growing Profit Margin: ZVO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZVO is unprofitable, and losses have increased over the past 5 years at a rate of 44.1% per year.

Accelerating Growth: Unable to compare ZVO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ZVO is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (3%).


Return on Equity

High ROE: ZVO has a negative Return on Equity (-619.73%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Zovio's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ZVO's short term assets ($40.7M) do not cover its short term liabilities ($42.9M).

Long Term Liabilities: ZVO's short term assets ($40.7M) exceed its long term liabilities ($35.9M).


Debt to Equity History and Analysis

Debt Level: ZVO has more cash than its total debt.

Reducing Debt: Insufficient data to determine if ZVO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: ZVO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ZVO has less than a year of cash runway if free cash flow continues to reduce at historical rates of 17.3% each year


Discover healthy companies

Dividend

What is Zovio current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if ZVO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ZVO has not reported any payouts.


Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure


CEO

Randy Hendricks (65 yo)

0.67yr

Tenure

US$3,199,970

Compensation

Mr. Randy J. Hendricks serves as Chief Executive Officer and Director at Zovio Inc since December 6, 2021. Mr. Hendricks serves as Senior Managing Director of Higher Education Practice at Huron Consulting...


CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD3.20M) is above average for companies of similar size in the US market ($USD758.99K).

Compensation vs Earnings: Insufficient data to compare Randy's compensation with company performance.


Leadership Team

Experienced Management: ZVO's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: ZVO's board of directors are considered experienced (3.8 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 been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

Zovio Inc's employee growth, exchange listings and data sources


Key Information

  • Name: Zovio Inc
  • Ticker: ZVO
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Education Services
  • Sector: Consumer Services
  • Implied Market Cap: US$10.529m
  • Shares outstanding: 34.21m
  • Website: https://www.zovio.com

Number of Employees


Location

  • Zovio Inc
  • 1811 East Northrop Boulevard
  • Chandler
  • Arizona
  • 85286
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.