NYSE:ZAYO

Stock Analysis Report

Executive Summary

Zayo Group Holdings, Inc. provides bandwidth infrastructure solutions for the communications industry.

Snowflake

Fundamentals

Proven track record with concerning outlook.


Similar Companies

Share Price & News

How has Zayo Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.09%

NYSE:ZAYO

-2.9%

US Telecom

-0.02%

US Market


1 Year Return

-3.6%

NYSE:ZAYO

7.9%

US Telecom

1.6%

US Market

ZAYO underperformed the Telecom industry which returned 7% over the past year.

ZAYO underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

ZAYOIndustryMarket
7 Day-0.09%-2.9%-0.02%
30 Day0.1%4.4%2.7%
90 Day2.4%8.4%1.4%
1 Year-3.6%-3.6%13.6%7.9%3.8%1.6%
3 Year13.8%13.8%15.6%-1.2%45.2%35.8%
5 Yearn/a33.5%2.9%61.8%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

53.79x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Zayo Group Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Zayo Group Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Zayo Group Holdings is overvalued based on earnings compared to the US Telecom industry average.

Zayo Group Holdings is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Zayo Group Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Zayo Group Holdings is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Zayo Group Holdings expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Zayo Group Holdings's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Zayo Group Holdings's earnings are expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).

Zayo Group Holdings's revenue growth is positive but not above the United States of America market average.

Zayo Group Holdings's earnings growth is positive but not above the United States of America market average.

Zayo Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Zayo Group Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Zayo Group Holdings performed over the past 5 years?

72.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Zayo Group Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Zayo Group Holdings's 1-year earnings growth is less than its 5-year average (45.8% vs 72.5%)

Zayo Group Holdings's earnings growth has exceeded the US Telecom industry average in the past year (45.8% vs -18%).


Return on Equity

Zayo Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Zayo Group Holdings used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Zayo Group Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Zayo Group Holdings's financial position?


Financial Position Analysis

Zayo Group Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Zayo Group Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Zayo Group Holdings's level of debt (435.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (759.8% vs 435.7% today).

Debt is not well covered by operating cash flow (16.3%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is Zayo Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Zayo Group Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Zayo Group Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Zayo Group Holdings has not reported any payouts.

Unable to verify if Zayo Group Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Zayo Group Holdings has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Zayo Group Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Dan Caruso (56yo)

12.7yrs

Tenure

US$7,335,436

Compensation

Mr. Daniel P. Caruso, also known as Dan, has been the Chief Executive Officer, President and Chairman at Zayo Group Holdings, Inc. since 2007. Mr. Caruso co-founded Zayo Group Holdings. Mr. Caruso oversees ...


CEO Compensation Analysis

Dan's remuneration is about average for companies of similar size in United States of America.

Dan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

The tenure for the Zayo Group Holdings management team is about average.


Board Age and Tenure

4.1yrs

Average Tenure

56yo

Average Age

The tenure for the Zayo Group Holdings board of directors is about average.


Insider Trading

Zayo Group Holdings individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$152,19016 Sep 19
Matt Steinfort
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,500
Max PriceUS$33.82
SellUS$506,91316 Sep 19
John Waters
EntityIndividual
Role
Chief Operating Officer
COO & President of Networks
Shares14,993
Max PriceUS$33.81
SellUS$33,780,00013 Sep 19
Daniel Caruso
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares1,000,000
Max PriceUS$33.78
SellUS$75,937,50009 Sep 19
Daniel Caruso
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares2,250,000
Max PriceUS$33.75
SellUS$14,111,33017 Jun 19
Daniel Caruso
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares432,200
Max PriceUS$32.65
SellUS$21,485,48217 Jun 19
Daniel Caruso
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares655,845
Max PriceUS$32.76
SellUS$6,367,77911 Jun 19
Daniel Caruso
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares194,436
Max PriceUS$32.75
SellUS$490,05011 Jun 19
Richard Connor
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$32.67
SellUS$451,17107 Jun 19
Mary Morris
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,772
Max PriceUS$32.76
SellUS$16,706,26517 May 19
BlackRock, Inc.
EntityCompany
Shares504,721
Max PriceUS$33.10
BuyUS$14,895,07617 May 19
BlackRock, Inc.
EntityCompany
Shares464,890
Max PriceUS$32.04

Ownership Breakdown


Management Team

  • Jack Waters (54yo)

    COO & President of Networks

    • Tenure: 0.6yrs
    • Compensation: US$3.98m
  • Dan Caruso (56yo)

    Co-Founder

    • Tenure: 12.7yrs
    • Compensation: US$7.34m
  • Matt Steinfort (49yo)

    Chief Financial Officer

    • Tenure: 2yrs
    • Compensation: US$2.36m
  • Dennis Kyle

    Senior Vice President of Fibre Solutions

    • Tenure: 4.7yrs
  • Brad Korch

    Vice President of Investor Relations

    • Tenure: 4.7yrs
  • Rachel Stack

    Senior Vice President of Corporate Strategy & Development

    • Tenure: 3.1yrs
  • Bruce Garrison

    Senior Vice President of zColo

    • Tenure: 1.1yrs
  • Sandi Mays (50yo)

    Co-Founder and Chief Customer Experience & Information Officer

    • Tenure: 0yrs
  • Mike Mooney

    Senior VP & General Counsel

    • Tenure: 0.7yrs
  • Liz Rolander

    Vice President of People & Culture

    • Tenure: 0.08yrs

Board Members

  • Don Gips (59yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$342.00k
  • Steve Kaplan (59yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$297.00k
  • Yancey Spruill (51yo)

    Lead Independent Director

    • Tenure: 0yrs
  • Dan Caruso (56yo)

    Co-Founder

    • Tenure: 12.7yrs
    • Compensation: US$7.34m
  • Cathy Morris (60yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$342.00k
  • Scott Drake (51yo)

    Independent Director

    • Tenure: 0.8yrs
  • Rick Connor (70yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$336.00k
  • Linda Rottenberg (51yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$288.00k
  • Emily White (40yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$264.00k

Company Information

Zayo Group Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zayo Group Holdings, Inc.
  • Ticker: ZAYO
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$7.993b
  • Shares outstanding: 236.27m
  • Website: https://www.zayo.com

Number of Employees


Location

  • Zayo Group Holdings, Inc.
  • 1821 30th Street
  • Unit A
  • Boulder
  • Colorado
  • 80301
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZAYONYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2014
1ZYDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2014

Biography

Zayo Group Holdings, Inc. provides bandwidth infrastructure solutions for the communications industry. It operates in four segments: Zayo Networks, Zayo Colocation (zColo), Allstream, and Other. The Zayo N ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 00:38
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.