Zedge, Inc. (ZDGE)
Valuation Overview•Is Zedge, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 61/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
ZDGE struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($18M) and minimal debt risk.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 8.5%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $8.0M | -2.3% | +3.5% | +25.4% | +12.5% | |
| EBITDA | $1.2M | — | -67.4% | — | — | |
| Net Income | $926K | +73.9% | — | — | — | |
| EPS (Diluted) | $0.07 | +73.8% | — | — | — | |
| Free Cash Flow | $1.2M | -28.3% | -32.5% | +19.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 90.7% | 85.1% | 85.8% | 80.5% |
| Operating Margin | 8.5% | -0.9% | 14.0% | 2.7% |
| Net Margin | -3.6% | -20.3% | 3.5% | -3.8% |
| FCF Margin | 12.3% | 11.0% | 24.5% | 10.0% |
Total return is -23.2% (1Y), lagging the benchmark by -44.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -8.4% | -15.8% | — |
| 1Y | -23.2% | -44.1% | +1.8% |
| 3YCAGR | +14.6% | -4.4% | +3.5% |
| 5YCAGR | -29.7% | -40.9% | +0.4% |
| 10YCAGR | -2.7% | -16.2% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Zedge, Inc. (ZDGE) valuation, health, and returns.
Based on peer relative multiples, Zedge, Inc. appears Cheap versus peers compared to industry peers.
Zedge, Inc. has multiple valuation anchors: Peer Relative Fair Value: $6.44. A convergence of these signals offers higher conviction.
Zedge, Inc. displays good financial health with a composite quality score of 61/100, supported by a Altman Z-Score of 3.1 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of -6.3%.
Zedge, Inc. returns capital via buybacks instead of dividends, carrying a 11.0% buyback yield and reducing outstanding shares by -2.5% in the last 12 months.
Zedge, Inc.'s current growth trajectory is Decelerating. The company achieved -2.3% 1Y revenue growth and +73.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +3.5%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Zedge, Inc. include: -52.2% 1-year max drawdown. Volatility risk is characterized by a beta of 0.99x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.