ZNGA Stock Overview
Zynga Inc. provides social game services in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$8.77|
|52 Week High||US$12.32|
|52 Week Low||US$5.57|
|1 Month Change||33.69%|
|3 Month Change||21.47%|
|1 Year Change||-15.43%|
|3 Year Change||98.42%|
|5 Year Change||248.02%|
|Change since IPO||-7.68%|
Recent News & Updates
Merger Arbitrage Mondays: Take-Two Acquires Zynga
The largest game company acquisition in history was announced last week. Take-Two will acquire Zynga for $12.7 billion in a cash plus stock deal with the stock portion of the deal including "collars." We have seen several bidding wars in recent months and it will be interesting to see if someone like EA steps in with a competitive offer.
Zynga: Disappointing Deal Value
Zynga agrees to be bought by Take-Two Interactive at a disappointing valuation despite the deal premium. The new entity proposes a company rivaling EA trading at a major discount to the gaming giant. The new Take-Two will have appealing 14% growth rates plus $500 million in net bookings synergies in mobile. The stock will trade at a FY23 EV/S multiple of 3.5x, which is a major discount to past multiples.
Zynga (NASDAQ:ZNGA) Has A Pretty Healthy Balance Sheet
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
|ZNGA||US Entertainment||US Market|
Return vs Industry: ZNGA exceeded the US Entertainment industry which returned -33.6% over the past year.
Return vs Market: ZNGA underperformed the US Market which returned 4.2% over the past year.
|ZNGA Average Weekly Movement||13.2%|
|Entertainment Industry Average Movement||10.8%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.4%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: ZNGA is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.
Volatility Over Time: ZNGA's weekly volatility has increased from 8% to 13% over the past year.
About the Company
Zynga Inc. provides social game services in the United States and internationally. The company develops, markets, and operates social games as live services played on mobile platforms, such as Apple iOS and Google’s Android operating systems; social networking platforms, such as Facebook and Snapchat; and personal computers consoles, such as Nintendo’s Switch game console, and other platforms and consoles. It also provides advertising services comprising mobile advertisements, engagement advertisements and offers, and branded virtual items and sponsorships for marketers and advertisers; and licenses its own brands.
Zynga Fundamentals Summary
|ZNGA fundamental statistics|
Is ZNGA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ZNGA income statement (TTM)|
|Cost of Revenue||US$1.01b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-0.08|
|Net Profit Margin||-3.30%|
How did ZNGA perform over the long term?See historical performance and comparison
Is Zynga undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ZNGA ($8.77) is trading below our estimate of fair value ($18.54)
Significantly Below Fair Value: ZNGA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ZNGA is unprofitable, so we can't compare its PE Ratio to the US Entertainment industry average.
PE vs Market: ZNGA 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 ZNGA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ZNGA is overvalued based on its PB Ratio (3.3x) compared to the US Entertainment industry average (2.1x).
How is Zynga forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ZNGA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: ZNGA is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ZNGA's is expected to become profitable in the next 3 years.
Revenue vs Market: ZNGA's revenue (7.4% per year) is forecast to grow slower than the US market (9.1% per year).
High Growth Revenue: ZNGA's revenue (7.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ZNGA's Return on Equity is forecast to be low in 3 years time (13.6%).
How has Zynga performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ZNGA is currently unprofitable.
Growing Profit Margin: ZNGA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ZNGA is unprofitable, and losses have increased over the past 5 years at a rate of 31.7% per year.
Accelerating Growth: Unable to compare ZNGA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ZNGA is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (19.5%).
Return on Equity
High ROE: ZNGA has a negative Return on Equity (-2.99%), as it is currently unprofitable.
How is Zynga's financial position?
Financial Position Analysis
Short Term Liabilities: ZNGA's short term assets ($1.8B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: ZNGA's short term assets ($1.8B) exceed its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: ZNGA has more cash than its total debt.
Reducing Debt: Insufficient data to determine if ZNGA's debt to equity ratio has reduced over the past 5 years.
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: Whilst unprofitable ZNGA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: ZNGA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 42.6% per year.
What is Zynga current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ZNGA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ZNGA'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 ZNGA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ZNGA'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 ZNGA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Frank Gibeau (52 yo)
Mr. Frank D. Gibeau has been the Chief Executive Officer of Zynga, Inc. since March 7, 2016. Mr. Gibeau has been Independent Director at YETI Holdings, Inc. since January 30, 2020. He serves as Director of...
CEO Compensation Analysis
Compensation vs Market: Frank's total compensation ($USD32.00M) is above average for companies of similar size in the US market ($USD11.47M).
Compensation vs Earnings: Frank's compensation has increased whilst the company is unprofitable.
Experienced Management: ZNGA's management team is seasoned and experienced (5.3 years average tenure).
Experienced Board: ZNGA's board of directors are considered experienced (6.8 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.
Zynga Inc.'s employee growth, exchange listings and data sources
- Name: Zynga Inc.
- Ticker: ZNGA
- Exchange: NasdaqGS
- Founded: 2007
- Industry: Interactive Home Entertainment
- Sector: Media
- Implied Market Cap: US$9.915b
- Shares outstanding: 1.13b
- Website: https://www.zynga.com
Number of Employees
- Zynga Inc.
- 699 Eighth Street
- San Francisco
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/26 01:05|
|End of Day Share Price||2022/01/25 00:00|
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.