Zynga Stock Analysis (NASDAQ:ZNGA)

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$2.81 $0.01 (0.36%) ZNGA stock closing price Mar 27, 2017 (Closing)
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Zynga
Updated on : Mar 27, 2017
previous close
ZNGA 2.8 (0%)
S&P 500 2341.6 (0%)
Closing Price On: Mar 27, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Gaming
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-8.2%
Operating Profit
Operating Margin:
-15.4%
Sector Average:
10.4%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Cash Flow
Operating cash flow:
$27.7M
Net Income:
-$35.4M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
ZNGA PS :
3.4
Industry PS :
1.5
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-8.6%
Return on Equity:
-6.5%
Free Cash Flow Margin:
12.7%
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Zynga Analysis Video

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View Zynga stock analysis video. This is our ZNGA analyst opinion covering the buy and sell arguments for ZNGA stock.

Zynga Inc Stock Rating (1.7/5)

Our Zynga stock opinion is based on fundamentals of the company. This Zynga stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy ZNGA stock?

Should you sell ZNGA stock?

  • Zynga had a low YoY revenue growth of 2.6% in the 2016 Q4.
  • Sales declined by -8.2% annually over the last 5 years.
  • Zynga reported an average operating margin of -15.4% over the Last Twelve Months (LTM).
  • Zynga posted an average Net loss of -14.6% in the last twelve months.
  • The company does not have profits. Hence the PE ratio is meaningless for ZNGA stock.
  • The company is trading at a price to sales multiple of 3.4, which is higher in comparison to the Gaming industry average of 1.5, making ZNGA stock expensive.
  • The company has a negative Return on Invested Capital of -8.6%, which is a red flag.
  • A negative ROE of -6.5% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Zynga stock

MarcelD on Zynga stock analysis ($1.99)
bullish
Does anyone received any information about Microsoft speaking with Zynga regarding development of social apps??
reply