ZEAL Network (TIMA) AI Stock Analysis

• Market Cap: €1.00B
• Dividend Yield: 5.14%
• Average Volume (3M): 1.95K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.47
• Revenue Growth: 62.00%
• EPS Growth: 58.84%
• 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: 1,851
• 30 Day Avg. Volume: 1,952
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 39.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: €52.00 ▲(12.55% Upside)

ZEAL Network's strong financial performance is the key driver for its solid overall stock score. While technical analysis shows neutral signals, the company's valuation is fair with an appealing dividend yield. The absence of notable earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Earnings

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

Financial Performance

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

Market Expansion

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

Negative Factors

Consensus Expectations

Q1 2025 EBITDA came in at €17.7m, 19.6% above consensus, due to the efficiency improvements and strong sales growth.

ZEAL Network Business Overview & Revenue Model

Company Description

ZEAL Network (TIMA) is a leading provider in the online lottery and gaming sector, primarily operating in Germany. The company offers a diverse range of lottery-based products and services, including digital lottery brokerage, secondary lotteries, and instant win games. ZEAL Network is committed to providing innovative and secure gaming experiences to its customers, leveraging technology to enhance user engagement and accessibility.

How the Company Makes Money

ZEAL Network makes money primarily through commissions and fees associated with the sale of lottery tickets and related gaming products. As a digital lottery broker, the company earns a percentage of each ticket sold through its platform. Additionally, ZEAL Network generates revenue from secondary lotteries, where it offers customers the chance to participate in international lotteries. The company might also have partnerships with lottery operators and other gaming entities, contributing to its revenue streams. Its earnings are further bolstered by offering instant win games and other digital gaming products, which attract a broad customer base seeking diverse gaming experiences.

ZEAL Network Financial Statement Overview

Summary

ZEAL Network exhibits strong financial performance with robust revenue growth and profitability improvements. The balance sheet is solid with strategic leverage, and cash flow management is commendable. Minor concerns include fluctuations in financing activities and a decrease in stockholders' equity.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	203.23M	188.20M	116.05M	105.20M	83.59M	87.02M
Gross Profit	165.51M	169.69M	81.48M	94.55M	74.01M	76.18M
EBITDA	70.23M	61.87M	33.34M	32.48M	27.35M	20.60M
Net Income	46.77M	58.39M	12.85M	15.96M	10.79M	8.16M
Balance Sheet
Total Assets	450.64M	457.53M	394.65M	459.74M	503.40M	494.33M
Cash, Cash Equivalents and Short-Term Investments	148.11M	114.92M	58.05M	66.64M	93.33M	85.90M
Total Debt	98.10M	99.11M	27.70M	32.73M	15.63M	8.15M
Total Liabilities	202.81M	219.03M	129.90M	125.70M	118.46M	98.77M
Stockholders Equity	247.83M	238.51M	259.21M	327.95M	378.22M	387.67M
Cash Flow
Free Cash Flow	76.68M	74.78M	25.14M	27.06M	25.75M	4.73M
Operating Cash Flow	77.31M	75.33M	25.57M	28.49M	26.16M	5.37M
Investing Cash Flow	1.07M	160.00K	56.11M	-6.19M	-411.00K	-51.88M
Financing Cash Flow	-35.03M	-18.08M	-85.44M	-51.16M	-21.82M	-21.54M

ZEAL Network Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.20
• 50DMA: Negative
• 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 Negative. The current price of 46.2 is below the 20-day moving average (MA) of 47.77, below the 50-day MA of 46.94, and above the 200-day MA of 43.20, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 41.66 is Neutral, neither overbought nor oversold. The STOCH value of 21.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:TIMA.

ZEAL Network Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMA	74 Outperform	€1.00B	21.15	17.76%	5.14%	62.00%	58.84%
Sector *	66 Neutral	€7.42B	12.85	35.20%	3.51%	2.41%	-109.67%
XTP	56 Neutral	€248.94M	―		―	―	―
ACX	55 Neutral	€19.65M	―	-17.65%	―	15.25%	-195.90%
SB1	44 Neutral	€181.24M	―	-13.03%	―	―	―