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Zip Co

ASX:Z1P
Snowflake Description

Exceptional growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
Z1P
ASX
A$1B
Market Cap
  1. Home
  2. AU
  3. Diversified Financials
Company description

Zip Co Limited provides point-of-sale credit and digital payment services to consumers and merchants in Australia and New Zealand. The last earnings update was 54 days ago. More info.


Add to Portfolio Compare Print
  • Zip Co has significant price volatility in the past 3 months.
Z1P Share Price and Events
7 Day Returns
-1%
ASX:Z1P
-0.9%
AU Consumer Finance
-0.1%
AU Market
1 Year Returns
303.1%
ASX:Z1P
57.6%
AU Consumer Finance
16.5%
AU Market
Z1P Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zip Co (Z1P) -1% -11% 15.2% 303.1% 332.4% -
AU Consumer Finance -0.9% -2.2% 10.7% 57.6% 29.9% 35.1%
AU Market -0.1% 1.5% 3.5% 16.5% 21.9% 20.6%
1 Year Return vs Industry and Market
  • Z1P outperformed the Consumer Finance industry which returned 57.6% over the past year.
  • Z1P outperformed the Market in Australia which returned 16.5% over the past year.
Price Volatility
Z1P
Industry
5yr Volatility vs Market

Value

 Is Zip Co undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zip Co to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zip Co.

ASX:Z1P Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= A$0.15 * 19.2%
A$0.03
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. A$0.15
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:Z1P
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.691 (1 + (1- 30%) (40.7%))
0.925
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.925 * 5.96%)
7.82%

Discounted Cash Flow Calculation for ASX:Z1P using Excess Returns Model Model

The calculations below outline how an intrinsic value for Zip Co is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:Z1P Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (19.2% – 7.82%) * A$0.15)
A$0.02
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.02 / (7.82% - 2.31%)
A$0.31
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$0.15 + A$0.31
A$0.46
ASX:Z1P Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$0.46
Current discount Discount to share price of A$3.87
= -1 x (A$3.87 - A$0.46) / A$0.46
-733.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Zip Co is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zip Co's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zip Co's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:Z1P PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$-0.04
ASX:Z1P Share Price ** ASX (2019-11-19) in AUD A$3.87
Australia Consumer Finance Industry PE Ratio Median Figure of 7 Publicly-Listed Consumer Finance Companies 13.1x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.7x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zip Co.

ASX:Z1P PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:Z1P Share Price ÷ EPS (both in AUD)

= 3.87 ÷ -0.04

-109.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zip Co is loss making, we can't compare its value to the AU Consumer Finance industry average.
  • Zip Co is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Zip Co's expected growth come at a high price?
Raw Data
ASX:Z1P PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -109.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
95.4%per year
Australia Consumer Finance Industry PEG Ratio Median Figure of 5 Publicly-Listed Consumer Finance Companies 1.03x
Australia Market PEG Ratio Median Figure of 347 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Zip Co, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Zip Co's assets?
Raw Data
ASX:Z1P PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$0.22
ASX:Z1P Share Price * ASX (2019-11-19) in AUD A$3.87
Australia Consumer Finance Industry PB Ratio Median Figure of 12 Publicly-Listed Consumer Finance Companies 2.06x
Australia Market PB Ratio Median Figure of 1,584 Publicly-Listed Companies 1.75x
ASX:Z1P PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:Z1P Share Price ÷ Book Value per Share (both in AUD)

= 3.87 ÷ 0.22

17.86x

* Primary Listing of Zip Co.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zip Co is overvalued based on assets compared to the AU Consumer Finance industry average.
X
Value checks
We assess Zip Co's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Zip Co has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Zip Co expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
95.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zip Co expected to grow at an attractive rate?
  • Zip Co's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Zip Co's earnings growth is expected to exceed the Australia market average.
  • Zip Co's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:Z1P Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:Z1P Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 95.4%
ASX:Z1P Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 34.9%
Australia Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 45.9%
Australia Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 22.4%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:Z1P Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:Z1P Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 477 1
2022-06-30 335 130 44 3
2021-06-30 246 81 21 4
2020-06-30 157 41 -3 5
2019-11-19
ASX:Z1P Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 83 23 -11
2019-03-31 70 17 -13
2018-12-31 57 12 -15
2018-09-30 48 7 -19
2018-06-30 39 1 -23
2018-03-31 32 -4 -26
2017-12-31 26 -10 -29
2017-09-30 21 -9 -25
2017-06-30 16 -8 -20
2017-03-31 12 -5 -15
2016-12-31 9 -2 -10
2016-09-30 6 -2 -9

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zip Co's earnings are expected to grow significantly at over 20% yearly.
  • Zip Co's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:Z1P Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Zip Co Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:Z1P Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30 0.12 0.14 0.09 3.00
2021-06-30 0.04 0.05 0.03 3.00
2020-06-30 -0.02 -0.02 -0.03 2.00
2019-11-19
ASX:Z1P Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 -0.04
2019-03-31 -0.04
2018-12-31 -0.05
2018-09-30 -0.06
2018-06-30 -0.08
2018-03-31 -0.09
2017-12-31 -0.11
2017-09-30 -0.10
2017-06-30 -0.09
2017-03-31 -0.07
2016-12-31 -0.05
2016-09-30 -0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Zip Co is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Zip Co's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zip Co has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Zip Co performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zip Co's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zip Co does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Zip Co's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Zip Co's 1-year growth to the Oceania Consumer Finance industry average as it is not currently profitable.
Earnings and Revenue History
Zip Co's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zip Co Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:Z1P Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 82.88 -11.13 39.01
2019-03-31 70.10 -12.93 34.96
2018-12-31 57.32 -14.72 30.92
2018-09-30 48.30 -18.64 29.28
2018-06-30 39.27 -22.55 27.65
2018-03-31 32.47 -25.69 25.19
2017-12-31 25.68 -28.84 22.73
2017-09-30 21.05 -24.51 19.66
2017-06-30 16.43 -20.19 16.59
2017-03-31 12.48 -15.00 13.76
2016-12-31 8.53 -9.81 10.94
2016-09-30 5.73 -9.39 7.90
2016-06-30 2.92 -8.97 4.86
2016-03-31 2.00 -7.10 3.26
2015-12-31 1.09 -5.23 1.67
2015-09-30 0.75 -2.85 1.07
2015-06-30 0.41 -0.46 0.47
2014-06-30 0.00 -0.19 0.33 0.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Zip Co has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Zip Co has efficiently used its assets last year compared to the AU Consumer Finance industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Zip Co improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Zip Co's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zip Co has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Zip Co's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zip Co's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zip Co is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zip Co's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Zip Co's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zip Co Company Filings, last reported 4 months ago.

ASX:Z1P Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 76.30 587.45 13.79
2019-03-31 76.30 587.45 13.79
2018-12-31 24.55 462.89 20.46
2018-09-30 24.55 462.89 20.46
2018-06-30 33.38 289.72 13.87
2018-03-31 33.38 289.72 13.87
2017-12-31 39.34 210.98 18.32
2017-09-30 39.34 210.98 18.32
2017-06-30 11.63 160.26 19.57
2017-03-31 11.63 160.26 19.57
2016-12-31 23.48 80.39 12.19
2016-09-30 23.48 80.39 12.19
2016-06-30 11.54 31.05 7.09
2016-03-31 11.54 31.05 7.09
2015-12-31 4.81 8.51 4.23
2015-09-30 4.81 8.51 4.23
2015-06-30 -0.20 4.56 1.03
2014-06-30 -0.08 0.49 0.00
  • Zip Co's level of debt (769.9%) compared to net worth is high (greater than 40%).
  • Zip Co had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Zip Co has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Zip Co has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -78.5% per year.
X
Financial health checks
We assess Zip Co's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zip Co has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Zip Co's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Zip Co dividends. Estimated to be 0% next year.
If you bought A$2,000 of Zip Co shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Zip Co's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Zip Co's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:Z1P Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Australia Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 3.2%
Australia Market Average Dividend Yield Market Cap Weighted Average of 390 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:Z1P Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30 0.00 3.00
2021-06-30 0.00 4.00
2020-06-30 0.00 4.00
2019-11-19

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Zip Co has not reported any payouts.
  • Unable to verify if Zip Co's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Zip Co's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Zip Co has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Zip Co's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Zip Co's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zip Co afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zip Co has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Zip Co's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Larry Diamond
COMPENSATION A$589,717
CEO Bio

Mr. Larry Diamond serves as the Chief Executive Officer and Managing Director of Zipmoney Limited. Mr. Diamond co-founded zipMoney in 2013 following 12 years’experience in retail, IT, corporate finance and investment banking at Pacific Brands, Macquarie Capital and Deutsche Bank. He is a former consultant to lenders Prospa Advance, Money in Advance and payment operator Live TaxiEpay. Mr. Diamond serves as Director of Zipmoney Limited. He is a Qualified Chartered Accountant and holds a Bachelor of Information Technology and Master of Commerce (Finance).

CEO Compensation
  • Larry's compensation has increased whilst company is loss making.
  • Larry's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Zip Co management team in years:

2.5
Average Tenure
  • The tenure for the Zip Co management team is about average.
Management Team

Larry Diamond

TITLE
CEO, MD & Executive Director
COMPENSATION
A$590K

Martin Brooke

TITLE
Chief Financial Officer
COMPENSATION
A$472K
TENURE
2.8 yrs

Peter Gray

TITLE
COO & Executive Director
COMPENSATION
A$568K

Jonathan Englert

TITLE
Media & Communication Officer

Tommy Mermelshtayn

TITLE
Chief Strategy Officer
TENURE
3.1 yrs

Andy Mitchell

TITLE
Chief Growth Officer
TENURE
2.3 yrs

David Franks

TITLE
Company Secretary
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure of the Zip Co board of directors in years:

3.8
Average Tenure
  • The tenure for the Zip Co board of directors is about average.
Board of Directors

Philip Crutchfield

TITLE
Non-Executive Chairman
COMPENSATION
A$153K
TENURE
3.9 yrs

Larry Diamond

TITLE
CEO, MD & Executive Director
COMPENSATION
A$590K
TENURE
4.2 yrs

Peter Gray

TITLE
COO & Executive Director
COMPENSATION
A$568K
TENURE
4.2 yrs

Nati Harpaz

TITLE
Member of Advisory Board
TENURE
3.6 yrs

Geoff Levy

TITLE
Member of Advisory Board
AGE
60

David Shein

TITLE
Member of Advisory Board

Simon Schwarz

TITLE
Member of Advisory Board

Dianne Challenor

TITLE
Non-Executive Director
TENURE
1.8 yrs

John Batistich

TITLE
Non-Executive Director
COMPENSATION
A$91K
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
04. Jun 19 Sell Regal Funds Management Pty Limited Company 22. May 19 31. May 19 -623,952 A$3.86 A$-2,116,130
04. Jun 19 Buy Regal Funds Management Pty Limited Company 22. May 19 23. May 19 9,125 A$3.84 A$34,434
23. May 19 Sell Regal Funds Management Pty Limited Company 01. May 19 21. May 19 -3,870,597 A$3.39 A$-13,128,065
23. May 19 Buy Regal Funds Management Pty Limited Company 15. May 19 16. May 19 6,799 A$3.43 A$23,322
02. May 19 Sell Regal Funds Management Pty Limited Company 05. Apr 19 30. Apr 19 -4,856,091 A$3.09 A$-13,073,456
02. May 19 Buy Regal Funds Management Pty Limited Company 18. Apr 19 18. Apr 19 12,814 A$1.53 A$19,605
04. Apr 19 Buy Westpac Banking Corporation, Asset Management Arm Company 29. Mar 19 29. Mar 19 10,000 A$1.69 A$16,900
26. Mar 19 Sell Westpac Banking Corporation, Asset Management Arm Company 25. Feb 19 25. Feb 19 -22,879 A$1.57 A$-35,920
26. Mar 19 Buy Westpac Banking Corporation, Asset Management Arm Company 12. Feb 19 22. Mar 19 19,620 A$1.86 A$34,579
26. Mar 19 Sell BT Funds Management Limited Company 10. Jan 19 25. Feb 19 -8,287 A$1.44 A$-9,105
26. Mar 19 Buy BT Funds Management Limited Company 20. Mar 19 20. Mar 19 2,517 A$1.86 A$4,682
26. Mar 19 Buy Regal Funds Management Pty Limited Company 11. Dec 18 01. Mar 19 1,614,086 A$1.59 A$2,405,117
28. Feb 19 Sell Philip Crutchfield Individual 26. Feb 19 26. Feb 19 -1,000,000 A$1.50 A$-1,501,201
05. Dec 18 Buy Regal Funds Management Pty Limited Company 13. Aug 18 03. Dec 18 15,408,211 A$1.06 A$16,333,140
05. Dec 18 Sell Peter Gray Individual 04. Dec 18 04. Dec 18 -3,000,000 A$1.06 A$-3,180,002
05. Dec 18 Sell Larry Diamond Individual 04. Dec 18 04. Dec 18 -6,600,000 A$1.06 A$-6,996,004
20. Nov 18 Buy Philip Crutchfield Individual 20. Nov 18 20. Nov 18 50,000 A$0.95 A$47,525
20. Nov 18 Buy Philip Crutchfield Individual 20. Nov 18 20. Nov 18 50,000 A$0.94 A$47,235
X
Management checks
We assess Zip Co's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zip Co has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

The Zip Co (ASX:Z1P) Share Price Has Soared 357%, Delighting Many Shareholders

Check out our latest analysis for Zip Co Zip Co isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … When a company doesn't make profits, we'd generally expect to see good revenue growth. … In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 66% per year, over the same period.

Simply Wall St -

Have Insiders Been Selling Zip Co Limited (ASX:Z1P) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Zip Co The Last 12 Months Of Insider Transactions At Zip Co In the last twelve months, the biggest single sale by an insider was when the CEO, MD & Executive Director, Larry Diamond, sold AU$7.0m worth of shares at a price of AU$1.06 per share. … ASX:Z1P Recent Insider Trading, August 13th 2019 Insider Ownership of Zip Co Many investors like to check how much of a company is owned by insiders. … It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the Zip Co insiders selling.

Simply Wall St -

When Will Zip Co Limited (ASX:Z1P) Breakeven?

How fast will Z1P have to grow each year in order to reach the breakeven point by 2021? … Next Steps: There are too many aspects of Z1P to cover in one brief article, but the key fundamentals for the company can all be found in one place – Z1P’s company page on Simply Wall St. … Simply Wall St has no position in the stocks mentioned.

Simply Wall St -

How Much Of Zip Co Limited (ASX:Z1P) Do Insiders Own?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. … Private Company Ownership Our data indicates that Private Companies hold 6.1%, of the company's shares.

Simply Wall St -

Zip Co's Wonderful 367% Share Price Increase Shows How Capitalism Can Build Wealth

Zip Co isn't yet profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 67% per year, over the same period. … It's always tempting to take profits after a share price gain like that, but high-growth companies like Zip Co can sometimes sustain strong growth for many years.

Simply Wall St -

Should You Be Worried About Insider Transactions At Zip Co Limited (ASX:Z1P)?

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … So what is clear is that an insider saw fit to sell at around the current price of AU$1.06. … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.

Simply Wall St -

When Can We Expect A Profit From Zip Co Limited (ASX:Z1P)?

The AU$304m market-cap company announced a latest loss of -AU$22.5m on 30 June 2018 for its most recent financial year result? … The most pressing concern for investors is Z1P’s path to profitability – when will it breakeven. … Check out our latest analysis for Zip Co

Simply Wall St -

Zip Co Limited (ASX:Z1P): When Will It Breakeven?

With the latest financial year loss of -AU$20.19m and a trailing-twelve month of -AU$28.84m, the AU$255.69m market-cap amplifies its loss by moving further away from its breakeven target. … As path to profitability is the topic on Z1P’s investors mind, I’ve decided to gauge market sentiment. … I’ve put together a brief outline of industry analyst expectations for Z1P, its year of breakeven and its implied growth rate

Simply Wall St -

What Does Zip Co Limited's (ASX:Z1P) Share Price Indicate?

If you like the stock, you may want to keep an eye out for a potential price decline in the future. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … If you believe Z1P should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

Breakeven On The Horizon For Zip Co Limited (ASX:Z1P)

ASX:Z1P Past Future Earnings Apr 24th 18 Given this is a high-level overview, I won’t go into detail the detail of Z1P’s upcoming projects, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period. … Next Steps: This article is not intended to be a comprehensive analysis on Z1P, so if you are interested in understanding the company at a deeper level, take a look at Z1P’s company page on Simply Wall St. … Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

Simply Wall St -

Company Info

Description

Zip Co Limited provides point-of-sale credit and digital payment services to consumers and merchants in Australia and New Zealand. It offers integrated retail finance solutions to small, medium, and enterprise businesses across various industries through online and in-store. The company provides zip Pay and zip Money, which are digital wallets; and Pocketbook, a mobile app that automatically categorizes spending. It serves the retail, home, health and wellness, auto, travel, and entertainment sectors. The company was formerly known as ZipMoney Limited and changed its name to Zip Co Limited in December 2017. Zip Co Limited was founded in 2013 and is based in Sydney, Australia.

Details
Name: Zip Co Limited
Z1P
Exchange: ASX
Founded: 2013
A$1,443,258,345
372,934,973
Website: http://zipmoneylimited.com.au
Address: Zip Co Limited
126 Phillip Street,
Level 5,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX Z1P Share Capital Australian Securities Exchange AU AUD 21. Sep 2015
DB YRR Share Capital Deutsche Boerse AG DE EUR 21. Sep 2015
CHIA Z1P Share Capital Chi-X Australia AU AUD 21. Sep 2015
Number of employees
Current staff
Staff numbers
185
Zip Co employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/19 10:35
End of day share price update: 2019/11/19 00:00
Last estimates confirmation: 2019/11/07
Last earnings filing: 2019/09/26
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.