Zedge (NYSEAM:ZDGE) - Share price, News & Analysis

Q: What is the Fair Price of ZDGE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ZDGE ($2.71) is trading below our estimate of [[fair value]] ($40.21)

ZDGE fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

ZDGE Stock Overview

Zedge, Inc. operates a digital publishing and content platform worldwide.

Rewards

Trading at 93.3% below our estimate of its fair value

Revenue is forecast to grow 33.58% per year

Earnings grew by 22.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 80.8% per year for the next 3 years

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($41M)

Zedge Competitors

Glory Star New Media Group Holdings

NasdaqCM:GSMG

US$59.0m

Travelzoo

NasdaqGS:TZOO

US$77.1m

Liberty TripAdvisor Holdings

NasdaqGS:LTRP.A

US$86.1m

Leafbuyer Technologies

OTCPK:LBUY

US$4.7m

Price History & Performance

Summary of all time highs, changes and price drops for Zedge
Historical stock prices
Current Share Price	US$2.71
52 Week High	US$19.90
52 Week Low	US$2.66
Beta	1.01
1 Month Change	-49.72%
3 Month Change	-56.08%
1 Year Change	-84.47%
3 Year Change	48.09%
5 Year Change	26.05%
Change since IPO	-47.89%

Shareholder Returns

	ZDGE	US Interactive Media and Services	US Market
7D	-16.4%	-5.7%	-2.5%
1Y	-84.5%	-48.7%	-21.2%

Return vs Industry: ZDGE underperformed the US Interactive Media and Services industry which returned -48.7% over the past year.

Return vs Market: ZDGE underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is ZDGE's price volatile compared to industry and market?
ZDGE volatility
ZDGE Average Weekly Movement	12.2%
Interactive Media and Services Industry Average Movement	11.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: ZDGE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: ZDGE's weekly volatility (12%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2008	93	Jonathan Reich	https://www.zedge.net

Zedge, Inc. operates a digital publishing and content platform worldwide. Its platform enables consumers to personalize their mobile devices with ringtones, home screen app icons, wallpapers, widgets, and notification sounds. The company was incorporated in 2008 and is based in New York, New York.

Zedge Fundamentals Summary

How do Zedge's earnings and revenue compare to its market cap?
ZDGE fundamental statistics
Market Cap	US$40.72m
Earnings (TTM)	US$7.66m
Revenue (TTM)	US$24.41m

5.3x

P/E Ratio

1.7x

P/S Ratio

Is ZDGE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZDGE income statement (TTM)
Revenue	US$24.41m
Cost of Revenue	US$1.34m
Gross Profit	US$23.07m
Other Expenses	US$15.42m
Earnings	US$7.66m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.51
Gross Margin	94.51%
Net Profit Margin	31.37%
Debt/Equity Ratio	0%

How did ZDGE perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ZDGE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZDGE?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ZDGE. This is calculated by dividing ZDGE's market cap by their current preferred multiple.
What is ZDGE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$40.72m

ZDGE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	2.1x
PEG Ratio	-0.07x

Price to Earnings Ratio vs Peers

How does ZDGE's PE Ratio compare to its peers?

ZDGE PE Ratio vs Peers

The above table shows the PE ratio for ZDGE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	5.1x
GSMG Glory Star New Media Group Holdings	1.7x	18.7%	US$59.0m
TZOO Travelzoo	15.7x	30.7%	US$77.1m
LTRP.A Liberty TripAdvisor Holdings	0.2x	n/a	US$86.1m
LBUY Leafbuyer Technologies	2.6x	n/a	US$4.7m
ZDGE Zedge	5.3x	-80.8%	US$40.7m

Forward PE

Price-To-Earnings vs Peers: ZDGE is expensive based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (5.1x).

Price to Earnings Ratio vs Industry

How does ZDGE's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?

Price-To-Earnings vs Industry: ZDGE is good value based on its Price-To-Earnings Ratio (5.3x) compared to the US Interactive Media and Services industry average (40.8x)

Price to Earnings Ratio vs Fair Ratio

What is ZDGE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZDGE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.3x
Fair PE Ratio	2.9x

Price-To-Earnings vs Fair Ratio: ZDGE is expensive based on its Price-To-Earnings Ratio (5.3x) compared to the estimated Fair Price-To-Earnings Ratio (2.9x).

Share Price vs Fair Value

What is the Fair Price of ZDGE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZDGE ($2.71) is trading below our estimate of fair value ($40.21)

Significantly Below Fair Value: ZDGE is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: ZDGE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Zedge forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-80.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZDGE's earnings are forecast to decline over the next 3 years (-80.8% per year).

Earnings vs Market: ZDGE's earnings are forecast to decline over the next 3 years (-80.8% per year).

High Growth Earnings: ZDGE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ZDGE's revenue (33.6% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: ZDGE's revenue (33.6% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ZDGE's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Zedge performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

63.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZDGE has high quality earnings.

Growing Profit Margin: ZDGE's current net profit margins (31.4%) are lower than last year (36.6%).

Past Earnings Growth Analysis

Earnings Trend: ZDGE has become profitable over the past 5 years, growing earnings by 63.9% per year.

Accelerating Growth: ZDGE's earnings growth over the past year (22.8%) is below its 5-year average (63.9% per year).

Earnings vs Industry: ZDGE earnings growth over the past year (22.8%) exceeded the Interactive Media and Services industry -37.6%.

Return on Equity

High ROE: ZDGE's Return on Equity (19.6%) is considered low.

Discover strong past performing companies

Financial Health

How is Zedge's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ZDGE's short term assets ($20.3M) exceed its short term liabilities ($13.9M).

Long Term Liabilities: ZDGE's short term assets ($20.3M) exceed its long term liabilities ($2.6M).

Debt to Equity History and Analysis

Debt Level: ZDGE is debt free.

Reducing Debt: ZDGE had no debt 5 years ago.

Debt Coverage: ZDGE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ZDGE has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Zedge current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ZDGE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ZDGE'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 ZDGE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZDGE's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ZDGE has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Jonathan Reich (56 yo)

11yrs

Tenure

US$1,231,351

Compensation

Mr. Jonathan Reich has been Chief Executive Officer at Zedge, Inc. since August 5, 2020 and was its Chief Financial Officer and Chief Operating Officer since March 07, 2016 until August 5, 2020 and July 12...

CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD1.23M) is above average for companies of similar size in the US market ($USD800.58K).

Compensation vs Earnings: Jonathan's compensation has increased by more than 20% in the past year.

Leadership Team

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

Board Members

Experienced Board: ZDGE's board of directors are considered experienced (4.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: ZDGE insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/04/30
Annual Earnings	2021/07/31