Zynga Stock Analysis (NASDAQ:ZNGA)
Zynga Analysis Video
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 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.