Latest news with #Zigup
Yahoo
4 days ago
- Business
- Yahoo
Zigup Full Year 2025 Earnings: Misses Expectations
Zigup (LON:ZIG) Full Year 2025 Results Key Financial Results Revenue: UK£1.81b (down 1.1% from FY 2024). Net income: UK£79.8m (down 36% from FY 2024). Profit margin: 4.4% (down from 6.8% in FY 2024). The decrease in margin was primarily driven by higher expenses. EPS: UK£0.36 (down from UK£0.55 in FY 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Zigup Revenues and Earnings Miss Expectations Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) also missed analyst estimates by 20%. Looking ahead, revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 1.8% growth forecast for the Transportation industry in Europe. Performance of the market in the United Kingdom. The company's shares are down 1.7% from a week ago. Risk Analysis You should learn about the 3 warning signs we've spotted with Zigup (including 1 which can't be ignored). Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
4 days ago
- Business
- Yahoo
Zigup Full Year 2025 Earnings: Misses Expectations
Zigup (LON:ZIG) Full Year 2025 Results Key Financial Results Revenue: UK£1.81b (down 1.1% from FY 2024). Net income: UK£79.8m (down 36% from FY 2024). Profit margin: 4.4% (down from 6.8% in FY 2024). The decrease in margin was primarily driven by higher expenses. EPS: UK£0.36 (down from UK£0.55 in FY 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Zigup Revenues and Earnings Miss Expectations Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) also missed analyst estimates by 20%. Looking ahead, revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 1.8% growth forecast for the Transportation industry in Europe. Performance of the market in the United Kingdom. The company's shares are down 1.7% from a week ago. Risk Analysis You should learn about the 3 warning signs we've spotted with Zigup (including 1 which can't be ignored). Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
5 days ago
- Business
- Yahoo
Zigup (LON:ZIG) Is Increasing Its Dividend To £0.176
The board of Zigup Plc (LON:ZIG) has announced that the dividend on 30th of September will be increased to £0.176, which will be 0.6% higher than last year's payment of £0.175 which covered the same period. This makes the dividend yield 7.8%, which is above the industry average. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Zigup's Future Dividend Projections Appear Well Covered By Earnings Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Before making this announcement, Zigup was paying out quite a large proportion of both earnings and cash flow, with the dividend being 2,579% of cash flows. Paying out such a high proportion of cash flows can expose the business to needing to cut the dividend if the business runs into some challenges. Looking forward, earnings per share is forecast to rise by 28.4% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 61% by next year, which is in a pretty sustainable range. See our latest analysis for Zigup Dividend Volatility The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from £0.145 total annually to £0.264. This means that it has been growing its distributions at 6.2% per annum over that time. We like to see dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income. The Dividend Looks Likely To Grow With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Zigup has impressed us by growing EPS at 48% per year over the past five years. However, Zigup isn't reinvesting a lot back into the business, so we wonder how quickly it will be able to grow in the future. Our Thoughts On Zigup's Dividend Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. While Zigup is earning enough to cover the payments, the cash flows are lacking. We would probably look elsewhere for an income investment. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. To that end, Zigup has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-02-2025
- Business
- Yahoo
With 7%+ dividend yields, are these among the FTSE 250's best passive income stocks?
As interest rates look set to fall further in the coming year, trying to earn passive income from cash savings seems less attractive. Stocks and Shares ISAs are looking ever better to me. And quite a few FTSE 250 stocks are catching my attention for their attractive dividends. Assura (LSE:AGR) is one, with a 7.9% forecast dividend yield. It's a real estate investment trust (REIT) with a portfolio of leased-out heathcare properties. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. The Assura share price slide of the past five years is painful. But on Monday (17 February), the stock gained 9% in a single day on news of a takeover approach. US private equity firm Kohlberg Kravis Roberts made overtures regarding a possible cash offer at 48p per share. That's 23% above the closing price on 14 February. The board says the offer would 'materially undervalue' the company and has rejected it. Buying a dividend-paying stock only to have it bought out underneath us for cash means we'd be looking for something else to buy pretty quick. But at least we might have more cash to invest if we make a quick profit. I wouldn't consider it for that though, as these things have a habit of disappointing. If no deal comes off, I'd expect the share price to fall back. And we could be back to worrying about that long-term price fall again. Any kind of commercial real estate surely still faces uncertainties too. But this tells me I'm not the only one who thinks a lot of our FTSE 250 REITs like Assura are worth considering now. At least one big US investor appears to agree. Zigup (LSE: ZIG) might not be a name that gets investors' heads nodding in recognition. But it's really just the old Redde Northgate which changed its name last year. The new name for the vehicle rental and fleet management firm is apparently 'allied to a refreshed strategic framework under the new pillars of Enable, Deliver and Grow'. I don't really know what that means. But I do like Zigup's 8.3% forecast dividend yield. I'm less impressed by the 16% fall in underlying first-half earnings per share (EPS) the company posted in December. But it did say at the time that its 'outlook is unchanged and remains in line with market expectations'. Those expectations include a full-year EPS fall, but a return to earnings growth in 2026. We'd be looking at a price-to-earnings ratio of eight for the 2025 year, dropping to seven on 2027 forecasts. And there's a solid Buy consensus. Analysts expect further dividend rises, well covered by earnings. The dividend has been growing over the long term, with just a few minor dips. Together, they make me think Zigup has to be worth considering for those wanting to build up a passive income pot. We're still in a tough market here with plenty of competition. And a shaky economy could put pressure on business rentals. But I think the signs look good. The post With 7%+ dividend yields, are these among the FTSE 250's best passive income stocks? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
17-02-2025
- Business
- Yahoo
Is There An Opportunity With Zigup Plc's (LON:ZIG) 44% Undervaluation?
Using the 2 Stage Free Cash Flow to Equity, Zigup fair value estimate is UK£5.66 Current share price of UK£3.18 suggests Zigup is potentially 44% undervalued Analyst price target for ZIG is UK£4.67 which is 17% below our fair value estimate How far off is Zigup Plc (LON:ZIG) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. It may sound complicated, but actually it is quite simple! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. See our latest analysis for Zigup We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) -UK£8.84m UK£63.5m UK£83.3m UK£98.3m UK£111.4m UK£122.5m UK£131.9m UK£139.9m UK£146.9m UK£152.9m Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x2 Est @ 18.02% Est @ 13.30% Est @ 10.00% Est @ 7.69% Est @ 6.07% Est @ 4.94% Est @ 4.15% Present Value (£, Millions) Discounted @ 10% -UK£8.0 UK£52.1 UK£61.8 UK£66.0 UK£67.7 UK£67.4 UK£65.8 UK£63.1 UK£60.0 UK£56.6 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = UK£553m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£153m× (1 + 2.3%) ÷ (10%– 2.3%) = UK£1.9b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£1.9b÷ ( 1 + 10%)10= UK£709m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is UK£1.3b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of UK£3.2, the company appears quite good value at a 44% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Zigup as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 10%, which is based on a levered beta of 1.590. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Debt is well covered by earnings. Dividends are covered by earnings and cash flows. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Annual earnings are forecast to grow slower than the British market. Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Can we work out why the company is trading at a discount to intrinsic value? For Zigup, we've put together three essential elements you should look at: Risks: To that end, you should learn about the 3 warning signs we've spotted with Zigup (including 1 which is significant) . Future Earnings: How does ZIG's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
