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ZNGA

ZyngaNasdaqGS:ZNGA Stock Report

Last Price

US$8.77

Market Cap

US$9.9b

7D

-2.4%

1Y

-15.4%

Updated

26 Jan, 2022

Data

Company Financials +
ZNGA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends0/6

ZNGA Stock Overview

Zynga Inc. provides social game services in the United States and internationally.

Zynga Competitors

Activision Blizzard

NasdaqGS:ATVI

US$61.6b

Roblox

NYSE:RBLX

US$37.8b

Electronic Arts

NasdaqGS:EA

US$37.1b

Take-Two Interactive Software

NasdaqGS:TTWO

US$17.3b

Price History & Performance

Summary of all time highs, changes and price drops for Zynga
Historical stock prices
Current Share PriceUS$8.77
52 Week HighUS$12.32
52 Week LowUS$5.57
Beta0.13
1 Month Change33.69%
3 Month Change21.47%
1 Year Change-15.43%
3 Year Change98.42%
5 Year Change248.02%
Change since IPO-7.68%

Recent News & Updates

Jan 17

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.

Jan 11

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.

Dec 15
Zynga (NASDAQ:ZNGA) Has A Pretty Healthy Balance Sheet

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...

Shareholder Returns

ZNGAUS EntertainmentUS Market
7D-2.4%-13.4%-5.1%
1Y-15.4%-33.7%3.3%

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.

Price Volatility

Is ZNGA's price volatile compared to industry and market?
ZNGA volatility
ZNGA Average Weekly Movement13.2%
Entertainment Industry Average Movement10.8%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
20072,245Frank Gibeauhttps://www.zynga.com

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

How do Zynga's earnings and revenue compare to its market cap?
ZNGA fundamental statistics
Market CapUS$9.91b
Earnings (TTM)-US$89.90m
Revenue (TTM)US$2.72b

3.6x

P/S Ratio

-110.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZNGA income statement (TTM)
RevenueUS$2.72b
Cost of RevenueUS$1.01b
Gross ProfitUS$1.72b
ExpensesUS$1.81b
Earnings-US$89.90m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.08
Gross Margin63.06%
Net Profit Margin-3.30%
Debt/Equity Ratio44.2%

How did ZNGA perform over the long term?

See historical performance and comparison

Valuation

Is Zynga 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: 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).


Future Growth

How is Zynga forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

48.6%

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%).


Past Performance

How has Zynga performed over the past 5 years?

-31.7%

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.


Financial Health

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.


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: 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.


Dividend

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.


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Frank Gibeau (52 yo)

5.83yrs

Tenure

US$32,003,768

Compensation

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.


Leadership Team

Experienced Management: ZNGA's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: ZNGA's board of directors are considered experienced (6.8 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 4.8%.


Top Shareholders

Company Information

Zynga Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Zynga Inc.
  • 699 Eighth Street
  • San Francisco
  • California
  • 94103
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 01:05
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.