NasdaqGS:ZVO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ZVO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.8%

ZVO

10.3%

US Consumer Services

2.9%

US Market


1 Year Return

-26.3%

ZVO

21.7%

US Consumer Services

8.9%

US Market

Return vs Industry: ZVO underperformed the US Consumer Services industry which returned 21.7% over the past year.

Return vs Market: ZVO underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

ZVOIndustryMarket
7 Day12.8%10.3%2.9%
30 Day57.9%10.1%10.6%
90 Day88.7%0.2%5.1%
1 Year-26.3%-26.3%22.0%21.7%11.4%8.9%
3 Year-78.2%-78.2%71.5%65.1%34.3%25.4%
5 Year-70.1%-70.1%177.4%144.3%60.7%42.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zovio undervalued compared to its fair value and its price relative to the market?

0.88x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ZVO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ZVO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ZVO is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: ZVO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZVO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZVO is good value based on its PB Ratio (0.9x) compared to the US Consumer Services industry average (2.2x).


Next Steps

Future Growth

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

-17.0%

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 (2.2%).

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 earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZVO's revenue is expected to decline over the next 3 years (-17% per year).

High Growth Revenue: ZVO's revenue is forecast to decline over the next 3 years (-17% 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


Next Steps

Past Performance

How has Zovio performed over the past 5 years?

9.3%

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, but has reduced losses over the past 5 years at a rate of 9.3% 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 (15.4%).


Return on Equity

High ROE: ZVO has a negative Return on Equity (-43.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is Zovio's financial position?


Financial Position Analysis

Short Term Liabilities: ZVO's short term assets ($163.3M) exceed its short term liabilities ($125.4M).

Long Term Liabilities: ZVO's short term assets ($163.3M) exceed its long term liabilities ($31.5M).


Debt to Equity History and Analysis

Debt Level: ZVO is debt free.

Reducing Debt: ZVO has not had any debt for 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 61.6% each year


Next Steps

Dividend

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


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.


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 ZVO'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?

3.4yrs

Average management tenure


CEO

Andrew Clark (53yo)

16.58yrs

Tenure

US$4,328,449

Compensation

Mr. Andrew S. Clark Co-founded Zovio Inc (formerly known as Bridgepoint Education, Inc.) in November 2003 and has been Chief Executive Officer since November 2003 and President since February 2009. Mr. Cla ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD4.33M) is above average for companies of similar size in the US market ($USD577.87K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Clark
Co-Founder16.58yrsUS$4.33m3.21% $3.1m
Kevin Royal
CFO & Executive VP2.17yrsUS$1.25m0.22% $213.3k
Christopher Spohn
Executive Vice President of Operations0.17yrUS$910.14k0.049% $46.7k
Steven Burkholder
VP, Chief Accounting Officer & Corporate Controller3yrsno data0.040% $38.9k
Umang Jain
Executive VP & Chief Technology Officer1.25yrsno data0.012% $11.3k
Diane Thompson
Executive VP11.5yrsUS$1.34m0.32% $309.1k
Alanna Vitucci
Vice President of Corporate Communicationsno datano datano data
Thomas McCarty
Chief Marketing Officer & Senior VP3.42yrsUS$1.17m0.11% $103.0k
Marcus Brown
Executive VP & Chief People Officer5.92yrsno data0.12% $119.2k
Vickie Schray
Executive VP & Chief External Affairs Officer7.5yrsno data0.16% $155.1k

3.4yrs

Average Tenure

54yo

Average Age

Experienced Management: ZVO's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Clark
Co-Founder16.58yrsUS$4.33m3.21% $3.1m
L. Crandall
Independent Director11.5yrsUS$192.50k0.18% $170.7k
Victor Nichols
Independent Director5.75yrsUS$187.50k0.11% $109.5k
Ryan Craig
Independent Director16.58yrsUS$180.00k0.13% $127.8k
Teresa Carroll
Independent Director2.25yrsUS$145.00k0.062% $59.5k
George Pernsteiner
Independent Chairman2.25yrsUS$217.50k0.096% $92.1k
Michael Horn
Independent Director2.83yrsUS$140.00k0.096% $92.1k
Gregory Geoffroy
Chairman of Ashford University Board7.25yrsno datano data
Kirsten Marriner
Independent Director2.25yrsUS$142.50k0.062% $59.5k
John Kiely
Independent Director0.92yrUS$117.50kno data

4.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ZVO's board of directors are considered experienced (4.3 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 been diluted in the past year, with total shares outstanding growing by 6.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Zovio Inc
  • Ticker: ZVO
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$96.181m
  • Shares outstanding: 32.06m
  • Website: https://www.zovio.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZVONasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDApr 2009
0BDDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2009

Biography

Zovio Inc operates as an education technology services company in the United States. The company’s academic institutions, Ashford University offer associate's, bachelor's, master's, and doctoral degree programs in the disciplines of business, education, psychology, social sciences, and health sciences. It also operates a Web development school; and offers an online education platform that provides tutoring and online courses. The company offers its programs primarily through online; and at its campuses. As of December 31, 2019, its institutions offered approximately 1,210 courses and 90 degree programs; and had 34,722 students enrolled. The company was formerly known as Bridgepoint Education, Inc. and changed its name to Zovio Inc in April 2019. Zovio Inc was founded in 1999 and is headquartered in Chandler, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 13:46
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.