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Zynga

Nasdaq:ZNGA
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZNGA
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Media
Company description

Zynga Inc. develops, markets, and operates social games as live services in the United States and internationally. The last earnings update was 83 days ago. More info.


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ZNGA Share Price and Events
7 Day Returns
-0.5%
NasdaqGS:ZNGA
-1.8%
US Entertainment
0.7%
US Market
1 Year Returns
15.4%
NasdaqGS:ZNGA
3.2%
US Entertainment
-8.1%
US Market
ZNGA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zynga (ZNGA) -0.5% 17.7% 11.2% 15.4% 76% 19.7%
US Entertainment -1.8% 13.2% -0.4% 3.2% 59.3% 92.1%
US Market 0.7% 10.2% -1% -8.1% 38.8% 38.9%
1 Year Return vs Industry and Market
  • ZNGA outperformed the Entertainment industry which returned 3.2% over the past year.
  • ZNGA outperformed the Market in United States of America which returned -8.1% over the past year.
Price Volatility
ZNGA
Industry
5yr Volatility vs Market

Value

 Is Zynga undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zynga to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zynga.

NasdaqGS:ZNGA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ZNGA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.958 (1 + (1- 21%) (0%))
0.958
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.958 * 7.27%)
9.69%

Discounted Cash Flow Calculation for NasdaqGS:ZNGA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Zynga is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ZNGA DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 135.30 245.63 60.50 54.40 62.70
Source Analyst x5 Analyst x4 Analyst x1 Analyst x1 Analyst x1
Present Value
Discounted (@ 9.69%)
123.34 204.13 45.84 37.57 39.48
Present value of next 5 years cash flows $450.37
NasdaqGS:ZNGA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $62.70 × (1 + 2.73%) ÷ (9.69% – 2.73%)
$925.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $925.03 ÷ (1 + 9.69%)5
$582.44
NasdaqGS:ZNGA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $450.37 + $582.44
$1,032.81
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,032.81 / 925.68
$1.12
NasdaqGS:ZNGA Discount to Share Price
Calculation Result
Value per share (USD) From above. $1.12
Current discount Discount to share price of $4.26
= -1 x ($4.26 - $1.12) / $1.12
-281.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Zynga is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zynga's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zynga's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ZNGA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $0.03
NasdaqGS:ZNGA Share Price ** NasdaqGS (2019-01-23) in USD $4.26
United States of America Entertainment Industry PE Ratio Median Figure of 24 Publicly-Listed Entertainment Companies 24.52x
United States of America Market PE Ratio Median Figure of 3,026 Publicly-Listed Companies 16.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zynga.

NasdaqGS:ZNGA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ZNGA Share Price ÷ EPS (both in USD)

= 4.26 ÷ 0.03

132.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zynga is overvalued based on earnings compared to the US Entertainment industry average.
  • Zynga is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Zynga's expected growth come at a high price?
Raw Data
NasdaqGS:ZNGA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 132.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
39.7%per year
United States of America Entertainment Industry PEG Ratio Median Figure of 21 Publicly-Listed Entertainment Companies 1.47x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.26x

*Line of best fit is calculated by linear regression .

NasdaqGS:ZNGA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 132.4x ÷ 39.7%

3.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zynga is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Zynga's assets?
Raw Data
NasdaqGS:ZNGA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $1.88
NasdaqGS:ZNGA Share Price * NasdaqGS (2019-01-23) in USD $4.26
United States of America Entertainment Industry PB Ratio Median Figure of 55 Publicly-Listed Entertainment Companies 3.16x
United States of America Market PB Ratio Median Figure of 5,102 Publicly-Listed Companies 1.75x
NasdaqGS:ZNGA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ZNGA Share Price ÷ Book Value per Share (both in USD)

= 4.26 ÷ 1.88

2.27x

* Primary Listing of Zynga.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zynga is good value based on assets compared to the US Entertainment industry average.
X
Value checks
We assess Zynga's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check)
  5. Zynga has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Zynga expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
39.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zynga expected to grow at an attractive rate?
  • Zynga's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Zynga's earnings growth is expected to exceed the United States of America market average.
  • Zynga's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ZNGA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ZNGA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 39.7%
NasdaqGS:ZNGA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 11.8%
United States of America Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 16%
United States of America Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 11%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.6%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ZNGA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ZNGA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,593 414 282 1
2022-12-31 1,494 392 250 1
2021-12-31 1,386 354 215 1
2020-12-31 1,207 265 124 6
2019-12-31 1,081 208 61 7
2018-12-31 903 135 17 8
NasdaqGS:ZNGA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 892 105 28
2018-06-30 883 99 36
2018-03-31 875 95 42
2017-12-31 861 95 27
2017-09-30 819 96 -22
2017-06-30 776 82 -82
2017-03-31 749 59 -91
2016-12-31 741 60 -108
2016-09-30 737 36 -124
2016-06-30 750 10 -79
2016-03-31 768 -1 -102
2015-12-31 765 -44 -122

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zynga's earnings are expected to grow significantly at over 20% yearly.
  • Zynga's revenue is expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ZNGA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Zynga Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ZNGA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.29 0.29 0.29 1.00
2022-12-31 0.26 0.26 0.26 1.00
2021-12-31 0.23 0.23 0.23 1.00
2020-12-31 0.13 0.17 0.09 4.00
2019-12-31 0.08 0.12 0.05 4.00
2018-12-31 0.02 0.03 0.02 8.00
NasdaqGS:ZNGA Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 0.03
2018-06-30 0.04
2018-03-31 0.05
2017-12-31 0.03
2017-09-30 -0.02
2017-06-30 -0.09
2017-03-31 -0.10
2016-12-31 -0.12
2016-09-30 -0.14
2016-06-30 -0.09
2016-03-31 -0.11
2015-12-31 -0.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Zynga is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Zynga's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zynga has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Zynga performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zynga's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zynga has delivered over 20% year on year earnings growth in the past 5 years.
  • Zynga has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Zynga has become profitable in the last year making it difficult to compare the US Entertainment industry average.
Earnings and Revenue History
Zynga's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zynga Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ZNGA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 891.80 27.83 315.35 257.24
2018-06-30 883.15 35.72 314.75 247.72
2018-03-31 875.34 41.72 312.70 245.07
2017-12-31 861.39 26.64 307.95 254.57
2017-09-30 818.65 -21.72 291.48 276.90
2017-06-30 776.48 -81.55 283.29 296.39
2017-03-31 748.98 -91.09 274.70 313.67
2016-12-31 741.42 -108.17 274.33 329.28
2016-09-30 736.65 -123.94 296.59 324.96
2016-06-30 749.96 -79.15 296.45 323.79
2016-03-31 768.15 -101.57 309.37 343.45
2015-12-31 764.72 -121.51 291.52 341.75
2015-09-30 771.50 -115.44 301.32 369.37
2015-06-30 752.37 -175.55 314.54 384.31
2015-03-31 705.68 -211.21 310.06 364.39
2014-12-31 690.41 -225.90 325.03 396.55
2014-09-30 674.23 -206.02 310.66 348.79
2014-06-30 700.19 -149.03 283.30 336.45
2014-03-31 777.70 -102.30 284.56 380.40
2013-12-31 873.27 -36.98 267.32 413.00
2013-09-30 1,008.07 -60.30 265.49 466.37
2013-06-30 1,122.13 -112.96 282.24 540.96
2013-03-31 1,223.88 -119.96 311.32 587.95
2012-12-31 1,281.27 -209.45 370.93 645.65
2012-09-30 1,281.34 -565.20 557.38 958.50
2012-06-30 1,271.53 -512.48 565.56 917.70
2012-03-31 1,218.18 -489.67 553.09 842.13

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Zynga has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Zynga used its assets less efficiently than the US Entertainment industry average last year based on Return on Assets.
  • Zynga has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Zynga's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zynga has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Zynga's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zynga's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zynga is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zynga's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Zynga's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Zynga has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zynga Company Filings, last reported 3 months ago.

NasdaqGS:ZNGA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 1,616.44 0.00 420.28
2018-06-30 1,599.59 0.00 392.18
2018-03-31 1,643.87 0.00 635.43
2017-12-31 1,641.24 0.00 681.38
2017-09-30 1,630.13 0.00 772.23
2017-06-30 1,576.91 0.00 738.98
2017-03-31 1,560.63 0.00 720.44
2016-12-31 1,580.66 0.00 852.47
2016-09-30 1,646.85 0.00 870.82
2016-06-30 1,667.96 0.00 868.44
2016-03-31 1,676.78 0.00 857.46
2015-12-31 1,786.90 0.00 987.25
2015-09-30 1,920.43 0.00 1,069.72
2015-06-30 1,901.17 0.00 1,058.82
2015-03-31 1,873.14 0.00 950.44
2014-12-31 1,895.69 0.00 916.52
2014-09-30 1,930.88 0.00 825.76
2014-06-30 1,969.68 0.00 727.24
2014-03-31 1,989.12 0.00 782.20
2013-12-31 1,877.27 0.00 1,125.50
2013-09-30 1,872.75 0.00 1,098.22
2013-06-30 1,862.00 0.00 1,115.27
2013-03-31 1,863.50 100.00 1,268.68
2012-12-31 1,825.50 100.00 1,284.77
2012-09-30 1,853.73 100.00 1,323.04
2012-06-30 1,863.00 100.00 1,216.94
2012-03-31 1,775.37 0.00 1,062.74
  • Zynga has no debt.
  • Zynga had no debt 5 years ago.
  • Zynga has no debt, it does not need to be covered by operating cash flow.
  • Zynga has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Zynga's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zynga has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Zynga dividends. Estimated to be 0% next year.
If you bought $2,000 of Zynga shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Zynga's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Zynga's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ZNGA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1986 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ZNGA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.00 2.00
2019-12-31 0.00 3.00
2018-12-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Zynga has not reported any payouts.
  • Unable to verify if Zynga's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Zynga's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Zynga has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Zynga's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Zynga's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zynga afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zynga has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Frank Gibeau
COMPENSATION $1,735,000
AGE 49
TENURE AS CEO 2.8 years
CEO Bio

Mr. Frank D. Gibeau has been the Chief Executive Officer of Zynga, Inc. since March 7, 2016. Mr. Gibeau served as an Executive Vice President of EA Mobile at Electronic Arts Inc. since September 2013 until May 18, 2015 and served as its President of EA Label from August 4, 2011 to September 2013 and served as its President of EA Games Label from June 2007 to August 2011. He is a mobile, PC and console gaming industry veteran, with 25 years of experience in interactive entertainment. Mr. Gibeau served as an Executive Vice President and General Manager of North American Publishing of Electronic Arts Inc. since September 2005. He served as Senior Vice President of North American Marketing of Electronic Arts Inc., from 2002 to September 2005. He was responsible for numerous innovative and award-winning marketing campaigns is responsible for all aspects of the North American Publishing Division. He was responsible for product development, worldwide product management, marketing and planning for all packaged goods and online offerings within the EA brand including Need for Speed, Medal of Honor, Burnout, Army of Two, Battlefield, Command & Conquer, Skate, Warhammer and many more. While at EA, Mr. Gibeau also served as Executive Producer of the major motion picture "Need For Speed," which was released in 2014. Mr. Gibeau held various publishing positions since joining Electronic Arts Inc. in 1991. Mr. Gibeau is currently Chairman of the Corporate Advisory Board for the Marshall School of Business at the University of Southern California. He serves as Director at Zynga, Inc. since August 2015. He served as a Director of Cooliris, Inc. He holds a BS Degree from the University of Southern California and a M.B.A from Santa Clara University.

CEO Compensation
  • Frank's compensation has been consistent with company performance over the past year.
  • Frank's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Zynga management team in years:

2.3
Average Tenure
49
Average Age
  • The tenure for the Zynga management team is about average.
Management Team

Frank Gibeau

TITLE
CEO & Director
COMPENSATION
$2M
AGE
49
TENURE
2.8 yrs

James Griffin

TITLE
Chief Financial Officer
COMPENSATION
$875K
AGE
51
TENURE
2.3 yrs

Matt Bromberg

TITLE
Chief Operating Officer
COMPENSATION
$876K
AGE
51
TENURE
2.4 yrs

Phuong Phillips

TITLE
Chief Legal Officer & Secretary
COMPENSATION
$3M
AGE
41
TENURE
1.3 yrs

Bernard Kim

TITLE
President of Publishing
COMPENSATION
$1M
AGE
42
TENURE
2.6 yrs

Jeffrey Buckley

TITLE
Chief Accounting Officer
AGE
34
TENURE
1.7 yrs

Rebecca Lau

TITLE
Director of Investor Relations & Corporate Finance

Jeff Ryan

TITLE
Chief People Officer
AGE
51
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Zynga board of directors in years:

4
Average Tenure
58.5
Average Age
  • The tenure for the Zynga board of directors is about average.
Board of Directors

Mark Pincus

TITLE
Founder & Non Executive Chairman
COMPENSATION
$1
AGE
52
TENURE
11.8 yrs

Frank Gibeau

TITLE
CEO & Director
COMPENSATION
$2M
AGE
49
TENURE
3.4 yrs

Regina Dugan

TITLE
Director
COMPENSATION
$605K
AGE
55
TENURE
4.5 yrs

Lou Lavigne

TITLE
Lead Independent Director
COMPENSATION
$325K
AGE
69
TENURE
1.7 yrs

Janice Roberts

TITLE
Director
COMPENSATION
$362K
AGE
62
TENURE
1.9 yrs

Bing Gordon

TITLE
Director
COMPENSATION
$600K
AGE
68
TENURE
10.5 yrs

Ellen Siminoff

TITLE
Director
COMPENSATION
$250K
AGE
50
TENURE
6.5 yrs

Carol Mills

TITLE
Director
COMPENSATION
$354K
AGE
64
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Zynga's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zynga has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Zynga Inc.'s (NASDAQ:ZNGA) Liquidity Good Enough?

This article will examine ZNGA’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Don’t forget that this is a general and concentrated examination of Zynga's financial health, so you should conduct further analysis. … See our latest analysis for Zynga

Simply Wall St -

Why Zynga Inc. (NASDAQ:ZNGA) Is An Attractive Investment To Consider

(NASDAQ:ZNGA) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of ZNGA, it

Simply Wall St -

A Closer Look At Zynga Inc's (NASDAQ:ZNGA) Uninspiring ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.017 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Zynga Inc's (NASDAQ:ZNGA) CEO Overpaid Relative To Its Peers?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Frank Gibeau's Compensation Compare With Similar Sized Companies. … When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5m

Simply Wall St -

Estimating The Intrinsic Value Of Zynga Inc (NASDAQ:ZNGA)

In this article I am going to calculate the intrinsic value of Zynga Inc (NASDAQ:ZNGA). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Will Zynga Inc (NASDAQ:ZNGA) Continue To Underperform Its Industry?

and looking to gauge the potential return on investment in Zynga Inc (NASDAQ:ZNGA). … Zynga Inc (NASDAQ:ZNGA) generated a below-average return on equity of 2.54% in the past 12 months, while its industry returned 13.11%. … Knowing these components can change your views on ZNGA's below-average returns

Simply Wall St -

Have Investors Priced In Zynga Inc's (NASDAQ:ZNGA) Growth?

saw a significant share price rise of over 20% in the past couple of months on the NasdaqGS. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s examine Zynga’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Should You Be Tempted To Sell Zynga Inc (NASDAQ:ZNGA) At Its Current PE Ratio?

and want to better understand how you can grow your money by investing in Zynga Inc (NASDAQ:ZNGA). … Zynga Inc (NASDAQ:ZNGA) is currently trading at a trailing P/E of 91.1x, which is higher than the industry average of 36.6x. … While ZNGA might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

Why Zynga Inc (NASDAQ:ZNGA) May Not Be As Efficient As Its Industry

View our latest analysis for Zynga Breaking down Return on Equity Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:ZNGA Last Perf Apr 7th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Does Zynga Inc's (NASDAQ:ZNGA) PE Ratio Signal A Selling Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ZNGA Price per share = $3.55 Earnings per share = $0.031 ∴ Price-Earnings Ratio = $3.55 ÷ $0.031 = 115.8x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you accidentally compared lower growth firms with ZNGA, then ZNGA’s P/E would naturally be higher since investors would reward ZNGA’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with ZNGA, ZNGA’s P/E would again be higher since investors would reward ZNGA’s lower risk with a higher price as well.

Simply Wall St -

Company Info

Map
Description

Zynga Inc. develops, markets, and operates social games as live services in the United States and internationally. The company’s games are played on mobile platforms, such as iOS and Android operating systems, as well as on social networking sites, including Facebook. It also provides advertising services comprising mobile and display ads, engagement ads and offers, and branded virtual goods and sponsorships to advertising agencies and brokers; and software licensing and maintenance services related to NaturalMotion technology, as well as licenses its own brands. The company was formerly known as Zynga Game Network Inc. and changed its name to Zynga Inc. in November 2010. Zynga Inc. was founded in 2007 and is headquartered in San Francisco, California.

Details
Name: Zynga Inc.
ZNGA
Exchange: NasdaqGS
Founded: 2007
$4,008,179,504
925,676,560
Website: http://www.zynga.com
Address: Zynga Inc.
699 Eighth Street,
San Francisco,
California, 94103,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ZNGA Class A Common Stock Nasdaq Global Select US USD 16. Dec 2011
DB ZY3 Class A Common Stock Deutsche Boerse AG DE EUR 16. Dec 2011
LSE 0R0J Class A Common Stock London Stock Exchange GB USD 16. Dec 2011
SWX ZNGA Class A Common Stock SIX Swiss Exchange CH CHF 16. Dec 2011
Number of employees
Current staff
Staff numbers
1,555
Zynga employees.
Industry
Interactive Home Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/24 00:17
End of day share price update: 2019/01/23 00:00
Last estimates confirmation: 2019/01/19
Last earnings filing: 2018/11/02
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.