ZoomInfo Technologies Inc (ZI, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $6.9 billion. The current price of the stock is $17.69, reflecting a 4.29% gain over the past week and an impressive 25.71% gain over the past three months. Despite these gains, the GF Value of the stock is $50.88, which is significantly higher than the current trading price, suggesting that the stock might be undervalued. However, the GF Valuation status remains as a "Possible Value Trap, Think Twice," consistent with the valuation three months ago when the GF Value was slightly lower at $49.61. This indicates that while the stock has seen growth, investors should approach with caution.
ZoomInfo Technologies: A Cloud-Based Market Intelligence Innovator
ZoomInfo Technologies Inc operates within the competitive software industry, providing a cloud-based go-to-market intelligence platform. The company's services are designed to equip sales and marketing professionals with comprehensive data and insights, enabling them to target their efforts more effectively. The majority of ZoomInfo's revenue is generated within the United States, indicating a strong domestic market presence. As the company continues to innovate and expand its offerings, it remains a key player in the provision of market intelligence solutions.
Assessing ZoomInfo's Profitability
ZoomInfo's Profitability Rank stands at 4/10, which suggests room for improvement when compared to other companies in the industry. However, the company's operating margin is an impressive 20.52%, outperforming 89.91% of its industry peers. The ROE (Return on Equity) is 5.97%, which is better than 58.22% of industry peers, and the ROA (Return on Assets) at 1.91% also surpasses 55.49% of peers. Additionally, the ROIC (Return on Invested Capital) is 1.80%, which is higher than 50.21% of the companies in the same space. ZoomInfo has maintained profitability for 2 years, which is better than 18.81% of companies over the past decade. These figures indicate that ZoomInfo is a relatively profitable entity within its sector, with strong operational efficiency.
Growth Trajectory of ZoomInfo Technologies
ZoomInfo's growth metrics are promising, with a 3-Year Revenue Growth Rate per Share of 10.00%, which is better than 53.29% of industry peers. The company's Total Revenue Growth Rate, estimated for the next 3 to 5 years, stands at 9.16%, outperforming 44.99% of its competitors. These growth rates are indicative of ZoomInfo's potential to expand its market share and continue increasing its revenue streams in the foreseeable future.
Influential Shareholders in ZoomInfo
ZoomInfo's stock is held by several notable investors, which could influence the company's strategic direction and stock performance. Chase Coleman (Trades, Portfolio) is the leading shareholder with 6,741,728 shares, representing a 1.73% share percentage. Following him is Andreas Halvorsen (Trades, Portfolio), holding 3,754,192 shares, which accounts for 0.96% of the shares. Jim Simons (Trades, Portfolio) also holds a significant stake with 2,210,800 shares, equating to 0.57% of the company's shares. The involvement of these prominent investors may provide additional confidence to the market regarding ZoomInfo's future prospects.
Competitive Landscape
When compared to its competitors, ZoomInfo holds its own in the market. Monday.Com Ltd (MNDY, Financial) has a market cap of $10.37 billion, New Relic Inc (NEWR, Financial) is valued at $6.18 billion, and GitLab Inc (GTLB, Financial) stands at $11.15 billion. These companies, along with ZoomInfo, form a competitive landscape in the software industry, each vying for market share and technological leadership.
Conclusion: ZoomInfo's Market Position and Future Outlook
In conclusion, ZoomInfo Technologies Inc's recent stock price surge can be attributed to its solid profitability metrics, promising growth rates, and the confidence instilled by its significant shareholders. Despite the GF Valuation suggesting caution, the company's performance and potential for further growth make it a noteworthy consideration for investors. As ZoomInfo continues to compete in the dynamic software industry, its ability to innovate and adapt will be crucial in maintaining its upward trajectory and market position.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
