Zendesk
Market Cap
US$17.0b
Last Updated
2021/07/23 02:38 UTC
Data Sources
Company Financials +
Executive Summary
Zendesk, Inc., a software development company, provides software as a service solutions for organizations in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. More Details
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Adequate balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Zendesk's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ZEN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ZEN's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
5.3%
ZEN
3.0%
US Software
0.4%
US Market
1 Year Return
50.9%
ZEN
40.9%
US Software
36.9%
US Market
Return vs Industry: ZEN exceeded the US Software industry which returned 34.5% over the past year.
Return vs Market: ZEN exceeded the US Market which returned 35.1% over the past year.
Shareholder returns
| ZEN | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.3% | 3.0% | 0.4% |
| 30 Day | -1.2% | 4.9% | 1.6% |
| 90 Day | -3.0% | 8.5% | 2.7% |
| 1 Year | 50.9%50.9% | 41.8%40.9% | 39.1%36.9% |
| 3 Year | 136.9%136.9% | 139.9%133.4% | 61.0%51.0% |
| 5 Year | 383.1%383.1% | 358.6%335.0% | 122.5%97.8% |
Long-Term Price Volatility Vs. Market
How volatile is Zendesk's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
A Look At The Fair Value Of Zendesk, Inc. (NYSE:ZEN)1 month ago | Simply Wall St
This Insider Has Just Sold Shares In Zendesk, Inc. (NYSE:ZEN)1 month ago | Simply Wall St
Is Zendesk, Inc. (NYSE:ZEN) Potentially Undervalued?Valuation
Is Zendesk undervalued compared to its fair value and its price relative to the market?
16.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ZEN ($143.08) is trading below our estimate of fair value ($170.46)
Significantly Below Fair Value: ZEN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ZEN is unprofitable, so we can't compare its PE Ratio to the US Software industry average.
PE vs Market: ZEN 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 ZEN's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ZEN is overvalued based on its PB Ratio (39.4x) compared to the US Software industry average (7.1x).
Future Growth
How is Zendesk forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
39.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ZEN is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: ZEN is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: ZEN is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: ZEN's revenue (20% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: ZEN's revenue (20% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ZEN's Return on Equity is forecast to be high in 3 years time (31.6%)
Past Performance
How has Zendesk performed over the past 5 years?
-18.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ZEN is currently unprofitable.
Growing Profit Margin: ZEN is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ZEN is unprofitable, and losses have increased over the past 5 years at a rate of 18.5% per year.
Accelerating Growth: Unable to compare ZEN's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ZEN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (33.3%).
Return on Equity
High ROE: ZEN has a negative Return on Equity (-52.15%), as it is currently unprofitable.
Financial Health
How is Zendesk's financial position?
Financial Position Analysis
Short Term Liabilities: ZEN's short term assets ($1.2B) exceed its short term liabilities ($709.5M).
Long Term Liabilities: ZEN's short term assets ($1.2B) exceed its long term liabilities ($1.0B).
Debt to Equity History and Analysis
Debt Level: ZEN's debt to equity ratio (251.1%) is considered high.
Reducing Debt: Insufficient data to determine if ZEN'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 ZEN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: ZEN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.6% per year.
Dividend
What is Zendesk current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ZEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ZEN'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 ZEN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ZEN'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 ZEN'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?
1.1yrs
Average management tenure
CEO
Mikkel Svane (50 yo)
13.92yrs
Tenure
US$6,489,330
Compensation
Mr. Mikkel Asger Svane has been Independent Director at Stitch Fix, Inc. Since October 16, 2018. Mr. Svane founded Zendesk, Inc. in 2007 and has been its Chief Executive Officer since August 2007. Mr. Svan...
CEO Compensation Analysis
Compensation vs Market: Mikkel's total compensation ($USD6.49M) is below average for companies of similar size in the US market ($USD11.26M).
Compensation vs Earnings: Mikkel's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: ZEN's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
Experienced Board: ZEN's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ZEN insiders have only sold shares 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 4.1%.
Top Shareholders
Company Information
Zendesk, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Zendesk, Inc.
- Ticker: ZEN
- Exchange: NYSE
- Founded: 2007
- Industry: Application Software
- Sector: Software
- Market Cap: US$16.976b
- Shares outstanding: 118.65m
- Website: https://www.zendesk.com
Number of Employees
Location
- Zendesk, Inc.
- 989 Market Street
- San Francisco
- California
- 94103
- United States
Listings
Biography
Zendesk, Inc., a software development company, provides software as a service solutions for organizations in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. Its flagshi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/23 02:38 |
| End of Day Share Price | 2021/07/22 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.