NasdaqGS:ZNGA

Stock Analysis Report

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Executive Summary

Zynga Inc. develops, markets, and operates social games as live services in the United States and internationally. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ZNGA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

ZNGA

1.2%

US Entertainment

2.3%

US Market


1 Year Return

59.2%

ZNGA

42.8%

US Entertainment

17.2%

US Market

Return vs Industry: ZNGA exceeded the US Entertainment industry which returned 42.6% over the past year.

Return vs Market: ZNGA exceeded the US Market which returned 15.8% over the past year.


Shareholder returns

ZNGAIndustryMarket
7 Day4.8%1.2%2.3%
30 Day0.7%-5.8%-4.6%
90 Day-4.3%7.2%7.4%
1 Year59.2%59.2%43.4%42.8%19.8%17.2%
3 Year138.7%138.7%58.9%55.5%37.4%28.3%
5 Year278.4%278.4%105.8%96.8%83.8%63.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZNGA ($9.12) is trading below our estimate of fair value ($9.4)

Significantly Below Fair Value: ZNGA is trading below fair value, but not by a significant amount.


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 (5x) compared to the US Entertainment industry average (4x).


Next Steps

Future Growth

How is Zynga forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

97.0%

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 (2.2%).

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 (16% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: ZNGA's revenue (16% 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 (19.6%).


Next Steps

Past Performance

How has Zynga performed over the past 5 years?

40.3%

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, but has reduced losses over the past 5 years at a rate of 40.3% 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 (44.6%).


Return on Equity

High ROE: ZNGA has a negative Return on Equity (-1.59%), as it is currently unprofitable.


Next Steps

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 ($983.8M).

Long Term Liabilities: ZNGA's short term assets ($1.8B) exceed its long term liabilities ($963.6M).


Debt to Equity History and Analysis

Debt Level: ZNGA's debt to equity ratio (33.6%) is considered satisfactory.

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 54.1% per year.


Next Steps

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?

4.1yrs

Average management tenure


CEO

Frank Gibeau (51 yo)

4.5yrs

Tenure

US$11,679,821

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. Mr. Gibeau served as an ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD11.68M) is about average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Frank's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Pincus
Founder & Non Executive Chairman13.42yrsUS$350.00k5.8%
$ 569.0m
Frank Gibeau
CEO & Director4.5yrsUS$11.68m0.32%
$ 31.8m
James Griffin
Chief Financial Officer4yrsUS$4.78m0.050%
$ 4.9m
Matthew Bromberg
Chief Operating Officer4.08yrsUS$4.78m0.084%
$ 8.2m
Phuong Phillips
Chief Legal Officer & Secretary3yrsUS$2.66m0.023%
$ 2.2m
Bernard Kim
President of Publishing4.25yrsUS$4.92m0.083%
$ 8.2m
Rebecca Lau
Vice President of Investor Relations & Corporate Financeno datano datano data
Jeff Ryan
Chief People Officer2.75yrsno data0.0016%
$ 155.0k

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: ZNGA's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Pincus
Founder & Non Executive Chairman13.42yrsUS$350.00k5.8%
$ 569.0m
Frank Gibeau
CEO & Director4.5yrsUS$11.68m0.32%
$ 31.8m
Janice Roberts
Independent Director3.5yrsUS$323.75k0.018%
$ 1.8m
William Gordon
Director12.17yrsUS$751.29k0.11%
$ 11.1m
Ellen Siminoff
Independent Director8.17yrsUS$271.25k0.024%
$ 2.3m
Louis Lavigne
Lead Independent Director 3.33yrsUS$361.25k0.030%
$ 2.9m
Carol Mills
Independent Director3.5yrsUS$315.00k0.018%
$ 1.8m
Regina Dugan
Independent Director6.17yrsUS$261.25k0.023%
$ 2.3m
Noel Watson
Independent Director0.17yrno data0.00032%
$ 31.4k

5.1yrs

Average Tenure

57yo

Average Age

Experienced Board: ZNGA's board of directors are considered experienced (5.1 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 14.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Zynga Inc.
  • Ticker: ZNGA
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: US$9.808b
  • Shares outstanding: 1.08b
  • Website: https://www.zynga.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZNGANasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDDec 2011
ZY3DB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 2011
0R0JLSE (London Stock Exchange)YesClass A Common StockGBUSDDec 2011
ZNGASWX (SIX Swiss Exchange)YesClass A Common StockCHCHFDec 2011

Biography

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 Apple iOS and Google’s Android ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 00:36
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
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.