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.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

ZNGA

4.5%

US Entertainment

4.0%

US Market


1 Year Return

52.2%

ZNGA

15.4%

US Entertainment

5.0%

US Market

Return vs Industry: ZNGA exceeded the US Entertainment industry which returned 14.9% over the past year.

Return vs Market: ZNGA exceeded the US Market which returned 4.8% over the past year.


Shareholder returns

ZNGAIndustryMarket
7 Day-0.5%4.5%4.0%
30 Day2.6%8.1%0.9%
90 Day43.5%37.8%29.5%
1 Year52.2%52.2%16.2%15.4%7.2%5.0%
3 Year164.7%164.7%53.3%49.3%36.2%27.3%
5 Year259.6%259.6%88.9%80.0%65.4%47.0%

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?

134.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZNGA ($9.53) is trading above our estimate of fair value ($5.71)

Significantly Below Fair Value: ZNGA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZNGA is poor value based on its PE Ratio (134.8x) compared to the Entertainment industry average (27.9x).

PE vs Market: ZNGA is poor value based on its PE Ratio (134.8x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: ZNGA is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: ZNGA is overvalued based on its PB Ratio (4.9x) compared to the US Entertainment industry average (2.8x).


Next Steps

Future Growth

How is Zynga forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

113.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZNGA's forecast earnings growth (113.3% per year) is above the savings rate (2.2%).

Earnings vs Market: ZNGA's earnings (113.3% per year) are forecast to grow faster than the US market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZNGA's revenue (10.3% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: ZNGA's revenue (10.3% 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 (12.4%).


Next Steps

Past Performance

How has Zynga performed over the past 5 years?

44.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZNGA has high quality earnings.

Growing Profit Margin: ZNGA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ZNGA has become profitable over the past 5 years, growing earnings by 44.5% per year.

Accelerating Growth: ZNGA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ZNGA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (21.3%).


Return on Equity

High ROE: ZNGA's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Zynga's financial position?


Financial Position Analysis

Short Term Liabilities: ZNGA's short term assets ($1.5B) exceed its short term liabilities ($797.8M).

Long Term Liabilities: ZNGA's short term assets ($1.5B) exceed its long term liabilities ($889.0M).


Debt to Equity History and Analysis

Debt Level: ZNGA's debt to equity ratio (31.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ZNGA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ZNGA's debt is well covered by operating cash flow (39.2%).

Interest Coverage: ZNGA's interest payments on its debt are well covered by EBIT (29.9x coverage).


Balance Sheet


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?

3.8yrs

Average management tenure


CEO

Frank Gibeau (51yo)

4.33yrs

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 ($USD11.68M) is about average for companies of similar size in the US market ($USD11.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frank Gibeau
CEO & Director4.33yrsUS$11.68m0.34% $34.4m
James Griffin
Chief Financial Officer3.83yrsUS$4.78m0.057% $5.8m
Matthew Bromberg
Chief Operating Officer3.92yrsUS$4.78m0.090% $9.2m
Phuong Phillips
Chief Legal Officer & Secretary2.83yrsUS$2.66m0.025% $2.5m
Bernard Kim
President of Publishing4.08yrsUS$4.92m0.091% $9.3m
Jeffrey Buckley
Chief Accounting Officer3.17yrsno data0.0078% $793.5k
Rebecca Lau
Vice President of Investor Relations & Corporate Financeno datano datano data
Jeff Ryan
Chief People Officer2.58yrsno data0.0018% $181.0k

3.8yrs

Average Tenure

51yo

Average Age

Experienced Management: ZNGA's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Gibeau
CEO & Director4.33yrsUS$11.68m0.34% $34.4m
Janice Roberts
Independent Director3.42yrsUS$323.75k0.020% $2.0m
William Gordon
Director12yrsUS$751.29k0.13% $12.8m
Ellen Siminoff
Independent Director8yrsUS$271.25k0.030% $3.0m
Louis Lavigne
Lead Independent Director 3.17yrsUS$361.25k0.033% $3.4m
Mark Pincus
Founder & Non Executive Chairman13.25yrsUS$350.00k6.69% $683.7m
Carol Mills
Independent Director3.42yrsUS$315.00k0.020% $2.0m
Regina Dugan
Independent Director6yrsUS$261.25k0.025% $2.6m

5.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ZNGA's board of directors are considered experienced (5.5 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 2.3%.


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$10.226b
  • Shares outstanding: 1.07b
  • 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 operating systems, as well as on social networking sites, such as Facebook and Snapchat. It also provides advertising services comprising mobile advertisements, engagement advertisements and offers, and branded virtual items and sponsorships to advertising networks, agencies, and brokers; and 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 23:55
End of Day Share Price2020/07/02 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.