Is Zuora Stock a Good Investment?
Zuora Investment Advice | ZUO |
- Examine Zuora's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Zuora's leadership team and their track record. Good management can help Zuora navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Systems Software space and any emerging trends that could impact Zuora's business and its evolving consumer preferences.
- Compare Zuora's performance and market position to its competitors. Analyze how Zuora is positioned in terms of product offerings, innovation, and market share.
- Check if Zuora pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Zuora's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Zuora Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Zuora Inc is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Zuora Stock
Researching Zuora's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 78.0% of the company outstanding shares are owned by institutional investors. The company recorded a loss per share of 0.33. Zuora Inc had not issued any dividends in recent years.
To determine if Zuora is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Zuora's research are outlined below:
| The company reported the last year's revenue of 431.66 M. Reported Net Loss for the year was (68.19 M) with profit before taxes, overhead, and interest of 244.05 M. | |
| Zuora Inc has about 203.24 M in cash with (18.77 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.4. | |
| Zuora Inc has a frail financial position based on the latest SEC disclosures | |
| Over 78.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from accesswire.com: Shareholders Are Invited To Join The Schall Law Firms Inquiry Into Zuora, Inc. For Securities Related Infractions |
Zuora Quarterly Good Will |
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Zuora uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Zuora Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Zuora's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of March 2024 Upcoming Quarterly Report | View | |
| 22nd of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 6th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Zuora's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Zuora's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-03-02 | 2022-01-31 | -0.02 | -0.01 | 0.01 | 50 | ||
2021-12-01 | 2021-10-31 | -0.03 | -0.02 | 0.01 | 33 | ||
2020-03-12 | 2020-01-31 | -0.1 | -0.09 | 0.01 | 10 | ||
2023-03-01 | 2023-01-31 | -0.06 | -0.04 | 0.02 | 33 | ||
2022-08-24 | 2022-07-31 | -0.05 | -0.03 | 0.02 | 40 | ||
2022-05-25 | 2022-04-30 | -0.01 | -0.03 | -0.02 | 200 | ||
2021-05-26 | 2021-04-30 | -0.04 | -0.02 | 0.02 | 50 | ||
2019-05-30 | 2019-04-30 | -0.13 | -0.11 | 0.02 | 15 |
Know Zuora's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Zuora is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Zuora Inc backward and forwards among themselves. Zuora's institutional investor refers to the entity that pools money to purchase Zuora's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Solel Partners Lp | 2024-09-30 | 2.2 M | First Trust Advisors L.p. | 2024-06-30 | 2.1 M | Nuveen Asset Management, Llc | 2024-06-30 | 2 M | Bank Of America Corp | 2024-06-30 | 1.7 M | Fund 1 Investments Llc | 2024-09-30 | 1.3 M | Northern Trust Corp | 2024-09-30 | 1.2 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.2 M | Emerald Advisers, Llc | 2024-09-30 | 1.1 M | Gagnon Securities Llc | 2024-09-30 | 1.1 M | Vanguard Group Inc | 2024-09-30 | 17.9 M | Blackrock Inc | 2024-06-30 | 13.1 M |
Zuora's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 1.53 B.Market Cap |
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Zuora's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.09) | (0.09) | |
| Return On Capital Employed | (0.12) | (0.12) | |
| Return On Assets | (0.08) | (0.09) | |
| Return On Equity | (0.51) | (0.54) |
Determining Zuora's profitability involves analyzing its financial statements and using various financial metrics to determine if Zuora is a good buy. For example, gross profit margin measures Zuora's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Zuora's profitability and make more informed investment decisions.
Zuora's Earnings Breakdown by Geography
Evaluate Zuora's management efficiency
Zuora Inc has Return on Asset of (0.0246) % which means that on every $100 spent on assets, it lost $0.0246. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (0.3102) %, meaning that it generated no profit with money invested by stockholders. Zuora's management efficiency ratios could be used to measure how well Zuora manages its routine affairs as well as how well it operates its assets and liabilities. As of the 28th of November 2024, Return On Tangible Assets is likely to drop to -0.09. In addition to that, Return On Capital Employed is likely to drop to -0.12. At this time, Zuora's Total Current Assets are very stable compared to the past year. As of the 28th of November 2024, Debt To Assets is likely to grow to 0.47, while Total Assets are likely to drop about 424.9 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 0.95 | 1.44 | |
| Tangible Book Value Per Share | 0.48 | 0.45 | |
| Enterprise Value Over EBITDA | (70.50) | (66.98) | |
| Price Book Value Ratio | 9.58 | 16.19 | |
| Enterprise Value Multiple | (70.50) | (66.98) | |
| Price Fair Value | 9.58 | 16.19 | |
| Enterprise Value | 1.8 B | 1.6 B |
Zuora Inc benefits from a management team that prioritizes both innovation and efficiency. We analyze these priorities to gauge the stock's future performance.
Beta 1.7 |
Basic technical analysis of Zuora Stock
As of the 28th of November, Zuora maintains the Market Risk Adjusted Performance of 0.2635, mean deviation of 0.9, and Downside Deviation of 1.35. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Zuora Inc, as well as the relationship between them.Zuora's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Zuora insiders, such as employees or executives, is commonly permitted as long as it does not rely on Zuora's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Zuora insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Zuora's Outstanding Corporate Bonds
Zuora issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Zuora Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Zuora bonds can be classified according to their maturity, which is the date when Zuora Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US98981BAA08 Corp BondUS98981BAA08 | View | |
| US98980BAA17 Corp BondUS98980BAA17 | View |
Understand Zuora's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Zuora's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0783 | |||
| Market Risk Adjusted Performance | 0.2635 | |||
| Mean Deviation | 0.9 | |||
| Semi Deviation | 1.03 | |||
| Downside Deviation | 1.35 | |||
| Coefficient Of Variation | 1039.74 | |||
| Standard Deviation | 1.47 | |||
| Variance | 2.15 | |||
| Information Ratio | 0.0072 | |||
| Jensen Alpha | 0.0688 | |||
| Total Risk Alpha | (0.1) | |||
| Sortino Ratio | 0.0079 | |||
| Treynor Ratio | 0.2535 | |||
| Maximum Drawdown | 6.8 | |||
| Value At Risk | (2.78) | |||
| Potential Upside | 2.8 | |||
| Downside Variance | 1.83 | |||
| Semi Variance | 1.06 | |||
| Expected Short fall | (1.12) | |||
| Skewness | 0.8087 | |||
| Kurtosis | 3.52 |
| Risk Adjusted Performance | 0.0783 | |||
| Market Risk Adjusted Performance | 0.2635 | |||
| Mean Deviation | 0.9 | |||
| Semi Deviation | 1.03 | |||
| Downside Deviation | 1.35 | |||
| Coefficient Of Variation | 1039.74 | |||
| Standard Deviation | 1.47 | |||
| Variance | 2.15 | |||
| Information Ratio | 0.0072 | |||
| Jensen Alpha | 0.0688 | |||
| Total Risk Alpha | (0.1) | |||
| Sortino Ratio | 0.0079 | |||
| Treynor Ratio | 0.2535 | |||
| Maximum Drawdown | 6.8 | |||
| Value At Risk | (2.78) | |||
| Potential Upside | 2.8 | |||
| Downside Variance | 1.83 | |||
| Semi Variance | 1.06 | |||
| Expected Short fall | (1.12) | |||
| Skewness | 0.8087 | |||
| Kurtosis | 3.52 |
Consider Zuora's intraday indicators
Zuora intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Zuora stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Zuora Corporate Filings
| 25th of November 2024 Other Reports | ViewVerify | |
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 31st of October 2024 Other Reports | ViewVerify | |
F3 | 23rd of October 2024 The schedule filed by any person or group who acquires beneficial ownership of more than 5% of a voting class of a company's equity securities registered under Section 12 of the Act | ViewVerify |
Zuora Stock media impact
Far too much social signal, news, headlines, and media speculation about Zuora that are available to investors today. That information is available publicly through Zuora media outlets and privately through word of mouth or via Zuora internal channels. However, regardless of the origin, that massive amount of Zuora data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Zuora news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Zuora relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Zuora's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Zuora alpha.
Zuora Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Zuora can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Zuora Inc Historical Investor Sentiment
Investor biases related to Zuora's public news can be used to forecast risks associated with an investment in Zuora. The trend in average sentiment can be used to explain how an investor holding Zuora can time the market purely based on public headlines and social activities around Zuora Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Zuora's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Zuora and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Zuora news discussions. The higher the estimate score, the more favorable the investor's outlook on Zuora.
Zuora Corporate Management
| Amy GuggenheimShenkan | Independent Director | Profile | |
| Rachael Claudio | Director of Social Impact | Profile | |
| Robert Traube | Chief Revenue Officer | Profile | |
| Matthew Dobson | Chief Officer | Profile | |
| Magdalena Yesil | Lead Independent Director | Profile |
Already Invested in Zuora Inc?
The danger of trading Zuora Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Zuora is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Zuora. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Zuora Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Zuora Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Zuora's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Zuora Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Zuora Inc Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Zuora Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Is Systems Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zuora. If investors know Zuora will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zuora listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.33) | Revenue Per Share 3.064 | Quarterly Revenue Growth 0.068 | Return On Assets (0.02) | Return On Equity (0.31) |
The market value of Zuora Inc is measured differently than its book value, which is the value of Zuora that is recorded on the company's balance sheet. Investors also form their own opinion of Zuora's value that differs from its market value or its book value, called intrinsic value, which is Zuora's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zuora's market value can be influenced by many factors that don't directly affect Zuora's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Zuora's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Zuora is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zuora's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.