Zuora Inc (ZUO) stock is nearly perfect except the valuation

The price of Zuora Inc (NYSE: ZUO) closed at $8.71 in the last session, down -1.58% from day before closing price of $8.85. In other words, the price has decreased by -$0.14 from its previous closing price. On the day, 1022101 shares were traded.

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Ratios:

We take a closer look at ZUO’s different ratios to gain a better understanding of the stock. For the most recent quarter (mrq), Quick Ratio is recorded 2.65 and its Current Ratio is at 2.37. In the meantime, Its Debt-to-Equity ratio is 3.02 whereas as Long-Term Debt/Eq ratio is at 2.97.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Goldman on January 23, 2024, Upgraded its rating to Buy and sets its target price to $12 from $10 previously.

On July 13, 2023, Robert W. Baird started tracking the stock assigning a Neutral rating and target price of $12.

On January 31, 2023, Lake Street started tracking the stock assigning a Buy rating and target price of $11.Lake Street initiated its Buy rating on January 31, 2023, with a $11 target price.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Jan 23 ’24 when Tzuo Tien sold 229,248 shares for $9.26 per share. The transaction valued at 2,123,501 led to the insider holds 6,352 shares of the business.

Tzuo Tien sold 6,909 shares of ZUO for $62,211 on Jan 22 ’24. The Chairman and CEO now owns 6,352 shares after completing the transaction at $9.00 per share. On Jan 16 ’24, another insider, Shenkan Amy Guggenheim, who serves as the Director of the company, sold 4,133 shares for $8.39 each. As a result, the insider received 34,685 and left with 42,461 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, ZUO now has a Market Capitalization of 1.25B and an Enterprise Value of 1.14B. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.89 while its Price-to-Book (P/B) ratio in mrq is 9.93. Its current Enterprise Value per Revenue stands at 2.63 whereas that against EBITDA is -43.10.

Stock Price History:

Over the past 52 weeks, ZUO has reached a high of $12.12, while it has fallen to a 52-week low of $7.05. The 50-Day Moving Average of the stock is 8.75, while the 200-Day Moving Average is calculated to be 9.11.

Shares Statistics:

According to the various share statistics, ZUO traded on average about 1.27M shares per day over the past 3-months and 1.31M shares per day over the past 10 days. A total of 143.12M shares are outstanding, with a floating share count of 132.70M. Insiders hold about 7.28% of the company’s shares, while institutions hold 75.62% stake in the company. Shares short for ZUO as of Feb 29, 2024 were 5.16M with a Short Ratio of 4.07, compared to 4.85M on Jan 31, 2024. Therefore, it implies a Short% of Shares Outstanding of 3.61% and a Short% of Float of 3.85%.

Earnings Estimates

The company has 6 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.07 for the current quarter, with a high estimate of $0.07 and a low estimate of $0.06, while EPS last year was $0.05. The consensus estimate for the next quarter is $0.09, with high estimates of $0.1 and low estimates of $0.08.

Analysts are recommending an EPS of between $0.42 and $0.38 for the fiscal current year, implying an average EPS of $0.4. EPS for the following year is $0.52, with 5 analysts recommending between $0.62 and $0.46.

Revenue Estimates

A total of 7 analysts have provided revenue estimates for ZUO’s current fiscal year. The highest revenue estimate was $455.96M, while the lowest revenue estimate was $447.6M, resulting in an average revenue estimate of $453.91M. In the same quarter a year ago, actual revenue was $431.66M, up 5.20% from the average estimate. Based on 6 analysts’ estimates, the company’s revenue will be $496.07M in the next fiscal year. The high estimate is $510.56M and the low estimate is $485.34M. The average revenue growth estimate for next year is up 9.30% from the average revenue estimate for this year.

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