Zeta Global Holdings Corp. Fundamental Analysis (NYSE: ZETA)
Zeta Global Holdings Corp. Fundamental Analysis (NYSE: ZETA)
Zeta Global Holdings Corp. (NYSE: ZETA) shows weak financial fundamentals with a PE ratio of 241.25, profit margin of 2.30%, and ROE of 4.40%. The company generates $1.6B in annual revenue with strong year-over-year growth of 29.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ZETA's fundamental strength across five key dimensions:
Efficiency Score
WeakZETA struggles to generate sufficient returns from assets.
Valuation Score
ModerateZETA shows balanced valuation metrics.
Growth Score
ExcellentZETA delivers strong and consistent growth momentum.
Financial Health Score
ExcellentZETA maintains a strong and stable balance sheet.
Profitability Score
WeakZETA struggles to sustain strong margins.
Key Financial Metrics
Is ZETA Expensive or Cheap?
P/E Ratio
ZETA trades at 241.25 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ZETA's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Zeta Global Holdings Corp. at 9.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 76.13 times EBITDA. This signals the market has high growth expectations.
How Well Does ZETA Make Money?
Net Profit Margin
For every $100 in sales, Zeta Global Holdings Corp. keeps $2.30 as profit after all expenses.
Operating Margin
Core operations generate 3.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.40 in profit for every $100 of shareholder equity.
ROA
Zeta Global Holdings Corp. generates $2.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zeta Global Holdings Corp. produces operating cash flow of $247.79M, showing steady but balanced cash generation.
Free Cash Flow
Zeta Global Holdings Corp. generates strong free cash flow of $235.04M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.04 in free cash annually.
FCF Yield
ZETA converts 2.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
241.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How ZETA Stacks Against Its Sector Peers
| Metric | ZETA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 241.25 | 32.70 | Worse (Expensive) |
| ROE | 4.40% | 758.00% | Weak |
| Net Margin | 2.30% | -4312.00% (disorted) | Weak |
| Debt/Equity | 0.24 | 0.96 | Strong (Low Leverage) |
| Current Ratio | 2.30 | 12.15 | Strong Liquidity |
| ROA | 2.44% | 1067467.00% | Weak |
ZETA outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zeta Global Holdings Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-48.15%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
91.34%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-18.13%
Industry Style: Growth, Innovation, High Beta
Declining