ZEAL Network (TIMA) AI Stock Analysis

• Market Cap: €995.67M
• Dividend Yield: 2.39%
• Average Volume (3M): 1.97K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.44
• Revenue Growth: 62.00%
• EPS Growth: 58.84%
• Country: DE
• Employees: 214
• Sector: Financial
• Sector Strength: 76
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.47
• Shares Outstanding: 21,681,786
• 10 Day Avg. Volume: 1,492
• 30 Day Avg. Volume: 1,970
• PEG Ratio: 0.76
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.53
• 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: €64.33
• Price Target Upside: 39.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: €53.00 ▲(15.22%Upside)

ZEAL Network's strong financial performance, characterized by robust revenue growth and solid profitability, is the primary driver of its stock score. Technical analysis supports a positive outlook with bullish momentum. Valuation metrics are balanced, making the stock an attractive option in its industry.

Positive Factors

Customer Growth

ZEAL acquired 1.3 million customers in the past financial year, showing significant growth from the previous year.

Financial Performance

Q1 results were strong, with a 20% EBITDA beat mainly attributed to a higher lottery take rate and customer growth.

Market Share

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

Negative Factors

Cost Management

ZEAL confirms its guidance for 2025 with sales of €195-205m and an EBITDA of €55-60m excluding exception costs.

ZEAL Network Business Overview & Revenue Model

Company Description

ZEAL Network SE, formerly known as Tipp24 SE, operates in the online lottery sector. The company is primarily engaged in the brokerage of state-licensed lotteries and digital lottery solutions. ZEAL offers a wide range of lottery-related products, including various national and international lottery games, instant lotteries, and complementary services. Its operations are mainly concentrated in Germany, where it connects millions of players with various lottery products through its digital platforms.

How the Company Makes Money

ZEAL Network SE generates revenue primarily through commissions and service fees associated with the sale of lottery tickets. The company acts as an intermediary between consumers and state-licensed lotteries, earning a commission on each ticket sold via its platforms. Additionally, ZEAL may offer subscription services, where players can participate in lotteries on a recurring basis, providing a steady revenue stream. The company also diversifies its income through partnerships with lottery operators and by offering value-added services, such as lottery syndicates and secondary lotteries, which enhance customer engagement and increase transaction volumes. Furthermore, ZEAL invests in marketing and customer acquisition strategies to grow its user base and expand its market share within the competitive online lottery sector.

ZEAL Network Financial Statement Overview

Summary

ZEAL Network presents a solid financial performance with robust revenue and profitability growth. The income statement shows strong margins, the balance sheet is healthy with strategic leverage, and cash flow management is commendable. Minor concerns include financing activities fluctuations and equity changes.

Income Statement

ZEAL Network has demonstrated a robust revenue growth trajectory, with a significant increase in total revenue from 2023 to 2024. The gross profit margin is impressive, indicating effective cost management. The net profit margin and EBITDA margin have also shown improvement, reflecting enhanced profitability over the years. However, a slight concern could be the higher EBIT margin relative to the industry average, suggesting potential cost pressures.

Balance Sheet

The company's balance sheet is strong, with a healthy equity ratio and a manageable debt-to-equity ratio. The return on equity (ROE) has improved, illustrating efficient use of equity to generate profits. However, a decrease in stockholders' equity over the period could be a point of caution, indicating potential liabilities or dividend distributions.

Cash Flow

Cash flow from operations has shown a marked increase, underpinning the company's ability to generate cash from its core operations. The free cash flow growth rate is positive, indicating good cash management. The operating cash flow to net income ratio is strong, suggesting that earnings are well-supported by cash. However, fluctuations in financing cash flow could imply variability in financial strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
188.20M	116.05M	105.20M	83.59M	87.02M
	Gross Profit
169.69M	81.48M	94.55M	74.01M	76.18M
	EBIT
50.49M	23.65M	22.93M	19.05M	3.68M
	EBITDA
61.87M	33.34M	32.48M	27.35M	20.60M
	Net Income Common Stockholders
58.39M	12.85M	15.96M	10.79M	8.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
114.92M	58.05M	66.64M	93.33M	85.90M
	Total Assets
457.53M	394.65M	459.74M	503.40M	494.33M
	Total Debt
99.11M	27.70M	32.73M	15.63M	8.15M
	Net Debt
-15.80M	-30.00M	-28.47M	-74.29M	-74.78M
	Total Liabilities
219.03M	129.90M	125.70M	118.46M	98.77M
	Stockholders Equity
238.51M	259.21M	327.95M	378.22M	387.67M
Cash Flow		Free Cash Flow
74.78M	25.14M	27.06M	25.75M	4.73M
	Operating Cash Flow
75.33M	25.57M	28.49M	26.16M	5.37M
	Investing Cash Flow
-40.59M	56.11M	-6.19M	-411.00K	-51.88M
	Financing Cash Flow
22.45M	-85.44M	-51.16M	-21.82M	-21.54M

ZEAL Network Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 46 is below the 20-day moving average (MA) of 46.01, above the 50-day MA of 44.43, and above the 200-day MA of 41.05, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, 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	75 Outperform	€995.67M	21.05	17.76%	2.39%	62.00%	58.84%
Sector *	65 Neutral	$12.76B	9.91	7.89%	78.91%	12.06%	-7.95%
XTP	56 Neutral	€215.05M	―		―	―	―
ACX	56 Neutral	€20.21M	―	-17.65%	―	15.25%	-195.90%