ZEAL Network (TIMA) AI Stock Analysis

• Market Cap: €984.85M
• Dividend Yield: 5.33%
• Average Volume (3M): 1.53K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.46
• Revenue Growth: 54.33%
• EPS Growth: -4.89%
• Country: DE
• Employees: 214
• Sector: Services
• Sector Strength: N/A
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.46
• Shares Outstanding: 21,681,786
• 10 Day Avg. Volume: 853
• 30 Day Avg. Volume: 1,531
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €57.00
• Price Target Upside: 24.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: €50.00 ▲(9.41% Upside)

ZEAL Network's strong financial performance and attractive dividend yield are key strengths, but technical indicators suggest potential bearish momentum. The high P/E ratio indicates possible overvaluation, balancing the overall score.

Positive Factors

Financial Performance

ZEAL published good Q2 2025 figures and confirms its guidance for 2025.

Market Share

ZEAL's online market share has grown from 41.4% to 43.8%, indicating a successful expansion in the market.

Sales Growth

Sales and EBITDA estimates are being revised upwards by 5-11% for the next three years.

Negative Factors

Customer Acquisition

Despite challenging jackpot conditions in H1 2025, ZEAL acquired 499k new customers, compared to 592k in H1 2024.

Jackpot Conditions

Challenging jackpot conditions in H1 2025 impacted customer acquisition.

ZEAL Network Business Overview & Revenue Model

Company Description

ZEAL Network SE engages in the online lottery brokerage business in Germany. It operates in Germany and Other segments. The company's products include LOTTO 6aus49, Spiel 77, Super 6, EuroJackpot, GlücksSpirale, Keno, lotto clubs, instant lotteries, freiheit+, and Deutsche Fernsehlotterie. It is also involved in Lotto24, an online lottery brokerage business; and Tipp24, an online lottery operation for the charitable organizations, as well as investing in early-stage start-ups. The company was formerly known as Tipp24 SE and changed its name to ZEAL Network SE in November 2014. ZEAL Network SE was founded in 1999 and is based in Hamburg, Germany.

How the Company Makes Money

ZEAL Network generates revenue through multiple streams, primarily from the sale of lottery tickets via its online platforms. The company earns a commission on each ticket sold, as well as from service fees associated with transactions. Additionally, ZEAL Network offers subscription services that allow customers to automate their lottery play, providing a steady revenue stream. Partnerships with various lottery organizations and regulatory bodies are crucial, as they enhance the company's credibility and access to larger markets. The company may also explore ancillary services, such as advertising and promotional partnerships, which contribute to its overall earnings.

ZEAL Network Financial Statement Overview

Summary

ZEAL Network demonstrates strong financial health with solid revenue and profit growth, efficient operational performance, and robust cash flow generation. The balance sheet is conservative with low leverage, but maintaining the equity base is crucial.

Income Statement

ZEAL Network shows strong revenue growth with a TTM revenue growth rate of 8% compared to the previous annual period. The company maintains high gross and net profit margins, with the TTM gross profit margin at 81.4% and net profit margin at 23.0%. The EBIT and EBITDA margins are also robust, indicating strong operational efficiency. However, a slight decline in the net profit margin from the previous year suggests some pressure on profitability.

Balance Sheet

The balance sheet reflects a strong equity base with an equity ratio of 55% in the TTM period. The debt-to-equity ratio is low at 0.40, indicating a conservative leverage position. Return on equity is healthy at 18.9%, suggesting effective use of equity to generate profits. However, the slight decrease in stockholders' equity from the previous year needs monitoring.

Cash Flow

Cash flow performance is impressive, with a free cash flow growth rate of 2.5% in the TTM period. The company's operating cash flow to net income ratio is strong at 1.65, indicating good cash generation relative to net income. Additionally, free cash flow covers net income adequately, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	212.96M	188.20M	116.05M	105.20M	83.59M	87.02M
Gross Profit	182.99M	169.69M	81.48M	94.55M	74.01M	76.18M
EBITDA	77.13M	61.87M	33.34M	32.48M	27.35M	20.60M
Net Income	40.99M	58.39M	12.85M	15.96M	10.79M	8.16M
Balance Sheet
Total Assets	405.01M	457.53M	394.65M	459.74M	503.40M	494.33M
Cash, Cash Equivalents and Short-Term Investments	105.36M	114.92M	58.05M	66.64M	93.33M	85.90M
Total Debt	93.44M	99.11M	27.70M	32.73M	15.63M	8.15M
Total Liabilities	198.87M	219.03M	129.90M	125.70M	118.46M	98.77M
Stockholders Equity	206.14M	238.51M	259.21M	327.95M	378.22M	387.67M
Cash Flow
Free Cash Flow	70.18M	74.78M	25.14M	27.06M	25.75M	4.73M
Operating Cash Flow	70.87M	75.33M	25.57M	28.49M	26.16M	5.37M
Investing Cash Flow	6.16M	160.00K	56.11M	-6.19M	-411.00K	-51.88M
Financing Cash Flow	-60.44M	-18.08M	-85.44M	-51.16M	-21.82M	-21.54M

ZEAL Network Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:TIMA, the sentiment is Positive. The current price of 45.7 is below the 20-day moving average (MA) of 46.06, below the 50-day MA of 46.89, and above the 200-day MA of 43.93, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 19.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:TIMA.

ZEAL Network Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMA	67 Neutral	€984.85M	23.53	17.24%	5.33%	54.33%	-4.89%
Sector *	57 Neutral	$1.87B	9.43	8.02%	2.45%	5.38%	-37.86%
0RIP	―	€19.58M	―	-17.65%	―	―	―
EUX	―	€251.32M	42.87	7.07%	6.57%	―	―
BWB	71 Outperform	€239.69M	5.01	24.12%	2.57%	15.69%	268.17%
XTP	56 Neutral	€238.43M	―		―	―	―
SB1	46 Neutral	€185.43M	―	-13.03%	―	―	―