Section 1: Company Overview and Fundamentals
1.1 Company Overview:
ZoomInfo Technologies Inc., (NASDAQ: ZI) through its subsidiaries, provides a go-to-market intelligence and engagement platform for sales and marketing teams. The Company’s cloud-based platform provides workflow tools with integrated, accurate, and comprehensive information on organizations and professionals to help users identify target customers and decision makers.
Kalkine’s American Tech Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.
Stock Performance:
- The stock has corrected by 25.14% in the last three months as well as by 28.57% in past nine months.
- The stock is leaning towards the lower band of its 52-week range of USD 30.16 and 52-week low price of USD 11.67, with the current price near an important support zone of USD 11.00-USD 12.00, with expectations of support if these levels sustains.
- The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 40.41.
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1.2 The Key Positives, Negatives, and Investment summary
1.3 Top 10 shareholders:
The top 10 shareholders together form ~50.31% of the total shareholding, signifying concentrated shareholding. The Vanguard Group, Inc., and The Carlyle Group are the biggest shareholders, holding the maximum stake in the company at ~8.61% and ~7.02%, respectively.
1.4 Key Metrics:
The comparative analysis between industry median percentages and those of ZI (Q1FY24) reveals notable disparities across various margin metrics. Specifically, ZI exhibits significantly higher figures across all margins, indicating a superior financial performance relative to the industry standard. Noteworthy differentials include the gross margin, where ZI records 86.0% compared to the industry's 72.4%, and the EBITDA margin, with ZI achieving 30.1% against the industry median of 11.3%. Moreover, ZI demonstrates favorable operating, pretax, and net margins at 10.8%, 9.5%, and 4.9%, respectively, outperforming the industry benchmarks of 6.6%, 7.7%, and 3.8%. This analysis underscores ZI's robust operational efficiency and financial health within the prevailing market landscape.
Section 2: Business Updates and Corporate Business Highlights
2.1 Recent Updates:
The below picture gives an overview of the recent updates:
2.2 Insights of Q1FY24:
Section 3: Key Risks & Outlook
Section 4: Stock Recommendation Summary:
4.1 Price Performance and Technical Summary:
Stock Performance:
- The stock has corrected by 25.14% in the last three months as well as by 28.57% in past nine months.
- The stock is leaning towards the lower band of its 52-week range of USD 30.16 and 52-week low price of USD 11.67, with the current price near an important support zone of USD 11.00-USD 12.00, with expectations of support if these levels sustains.
- The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 40.41.
4.2 Fundamental Valuation
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 10, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.
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