Zendesk Stock Analysis, Valuation (NYSE:ZEN)

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$62.2 $0.23 (0.37%) ZEN stock closing price Aug 16, 2018 (Closing)

Watch the robo advisor video of Zendesk stock analysis on Amigobulls. Our ZEN analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Zendesk Inc Stock Rating 2.2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ZEN stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Zendesk valuation analysis. Our Zendesk stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy ZEN stock?

  • The Year Over Year (YoY) revenue growth for Zendesk was 40.1% in 2018-06.
  • The company has a healthy free cash flow margin of 7.4.

Should you sell ZEN stock?

  • Zendesk registered a negative operating margin of -24.45 (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Zendesk had an average Net loss of -23.2%.
  • With a debt/equity ratio of 1.1, Zendesk is highly leveraged in comparison to Computer and Technology peers.
  • PE ratio is meaningless for ZEN stock as the company has losses.
  • The company is trading at a price to sales multiple of 12.9, which is higher in comparison to the Computer and Technology sector average of 2.9, making ZEN stock expensive.
  • The company has a negative Return on Invested Capital of -110.2, which is a red flag.
  • A negative ROE of -33.9 indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Zendesk stock

Investors can use Amigobulls Zendesk stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Zendesk revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about ZEN stock.