ZIGUP plc (ZIG) AI Stock Analysis

• Market Cap: £859.58M
• Dividend Yield: 6.97%
• Average Volume (3M): 467.40K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.14
• Revenue Growth: 0.72%
• EPS Growth: -9.51%
• Country: UK
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.28
• Shares Outstanding: 228,838,460
• 10 Day Avg. Volume: 476,181
• 30 Day Avg. Volume: 467,404
• PEG Ratio: -0.25
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 311.75
• 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: £458.33
• Price Target Upside: 20.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 430.00p ▲(13.31% Upside)

ZIGUP plc's overall stock score is driven by strong technical indicators and positive corporate events, suggesting potential for growth. However, financial performance challenges, including declining revenue and weak cash flow, weigh down the score. The attractive valuation with a low P/E ratio and high dividend yield provides some support.

Positive Factors

Business Model Strength

ZIGUP's diversified revenue streams from software sales, subscriptions, and consulting services provide a stable income base, enhancing resilience against market fluctuations.

Strategic Partnerships

Partnerships with major cloud providers strengthen ZIGUP's market position, offering co-marketing opportunities and bundled services that drive revenue growth.

Commitment to Innovation

ZIGUP's focus on R&D ensures the development of innovative solutions, maintaining its competitive edge and adapting to the evolving digital landscape.

Negative Factors

Declining Revenue

Declining revenue signals potential market challenges or competitive pressures, necessitating strategic adjustments to regain growth momentum.

Weak Cash Flow

Weak cash flow generation limits ZIGUP's ability to invest in growth opportunities and manage debt, posing risks to financial stability.

Reduced Profit Margins

Decreasing profit margins indicate operational inefficiencies or increased costs, which could impact long-term profitability if not addressed.

ZIGUP plc Business Overview & Revenue Model

Company Description

Zigup Plc provides mobility solutions and automotive services in the United Kingdom, Spain, and Ireland. The company offers contact center support, sales, claim processing, customer service, and general insurance products; provides fleet management, rapid response, and recovery management services; and supplies and installs electric vehicle charging equipment. In addition, it provides personal injury law and legal advice services; light commercial vehicle hire services; used vans and cars for business, and private individuals; and automotive crash repair and accident administration services. Further, the company operates a fleet of approximately 130,000 owned and leased vehicles, and approximately 700,000 managed vehicles. The company was formerly known as Redde Northgate plc and changed its name to Zigup Plc in May 2024. Zigup Plc was incorporated in 1897 and is headquartered in Darlington, the United Kingdom.

How the Company Makes Money

ZIGUP plc generates revenue primarily through a subscription-based model for its software services, providing clients with ongoing access to its platforms and continuous updates. Key revenue streams include licensing fees from software products, consulting services for implementation and customization, and maintenance contracts that ensure the software operates seamlessly over time. Additionally, ZIG has established strategic partnerships with major corporations in various industries, allowing it to expand its market reach and increase its sales through co-branded solutions and cross-promotional opportunities. The company also benefits from a growing demand for digital transformation, which drives higher adoption rates of its services.

ZIGUP plc Financial Statement Overview

Summary

ZIGUP plc faces challenges across its financial statements, with declining revenue and profitability, moderate leverage, and weak cash flow generation. The company needs to address its revenue growth and profitability issues while managing its cash flow more effectively to improve its financial health.

Income Statement

ZIGUP plc's income statement shows a declining revenue growth rate, with a significant drop of 70.3% in the latest year. Gross profit margin has decreased slightly from previous years, and net profit margin has also declined, indicating reduced profitability. The EBIT and EBITDA margins have also decreased, reflecting operational challenges. Overall, the income statement suggests a need for strategic improvements to reverse the negative growth trend.

Balance Sheet

The balance sheet of ZIGUP plc shows a moderate debt-to-equity ratio of 0.82, indicating manageable leverage. However, the return on equity has decreased to 7.51%, suggesting reduced efficiency in generating returns from equity. The equity ratio remains stable, indicating a solid capital structure. While the company maintains a stable balance sheet, the declining ROE is a concern for future profitability.

Cash Flow

ZIGUP plc's cash flow statement reveals a concerning decline in free cash flow growth, with a significant drop of over 100%. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is positive but low, suggesting limited cash generation relative to net income. Overall, the cash flow position is weak, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84B	1.81B	1.83B	1.49B	1.24B	1.11B
Gross Profit	395.68M	397.90M	414.33M	415.37M	326.43M	233.03M
EBITDA	464.91M	443.49M	445.06M	396.09M	365.28M	294.08M
Net Income	86.01M	79.84M	125.02M	139.24M	101.55M	65.57M
Balance Sheet
Total Assets	2.50B	2.34B	2.23B	2.11B	1.85B	1.72B
Cash, Cash Equivalents and Short-Term Investments	39.58M	33.74M	39.80M	14.12M	24.56M	11.17M
Total Debt	978.83M	869.93M	782.03M	708.56M	607.11M	541.51M
Total Liabilities	1.42B	1.27B	1.18B	1.11B	900.15M	807.06M
Stockholders Equity	1.08B	1.06B	1.04B	994.60M	946.76M	908.13M
Cash Flow
Free Cash Flow	-229.49M	2.25M	-192.90M	-49.97M	-50.77M	-59.84M
Operating Cash Flow	460.27M	16.45M	378.41M	357.34M	295.91M	252.99M
Investing Cash Flow	-466.93M	-11.27M	-285.95M	-288.23M	-215.70M	-94.82M
Financing Cash Flow	11.44M	-2.63M	-110.20M	-72.99M	-71.41M	-167.85M

ZIGUP plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 379.50
• 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 GB:ZIG, the sentiment is Positive. The current price of 379.5 is below the 20-day moving average (MA) of 381.72, above the 50-day MA of 363.38, and above the 200-day MA of 324.50, indicating a neutral trend. The MACD of 3.99 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZIG.

ZIGUP plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEN	71 Outperform	£817.84M	16.66	7.68%	3.19%	5.88%	107.36%
DATA	69 Neutral	£872.52M	59.60	3.76%	1.19%	9.25%	-51.82%
ZIG	68 Neutral	£859.58M	10.04	8.10%	6.97%	0.72%	-9.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SDY	56 Neutral	£116.44M	-9.78	-7.62%	8.43%	0.38%	-273.53%
67GX	50 Neutral	£859.58M	―	―	714.29%	―	―
PRO	42 Neutral	£49.35M	―	―	―	―	―

ZIGUP plc Corporate Events

ZIGUP plc Awards Shares to Employees Under Incentive Plan

ZIGUP plc has announced the awarding of 127 ordinary shares to over 7,500 eligible employees, including Executive Directors and PDMRs, under the Company’s Share Incentive Plan. This move, effective from December 5, 2025, is part of a strategy to align the interests of its management and employees with the company’s long-term goals, potentially enhancing employee engagement and retention.

The most recent analyst rating on (GB:ZIG) stock is a Hold with a £430.00 price target. To see the full list of analyst forecasts on ZIGUP plc stock, see the GB:ZIG Stock Forecast page.

ZIGUP plc to Present Interim Results via Investor Meet Company

ZIGUP plc announced that CEO Martin Ward and CFO Rachel Coulson will present the company’s interim results via Investor Meet Company on December 5. This presentation is accessible to existing and potential shareholders, highlighting ZIGUP’s commitment to transparency and engagement with its stakeholders. The event underscores ZIGUP’s strategic focus on sustainable growth and enhanced shareholder returns, leveraging its extensive network and expertise in the mobility sector.

The most recent analyst rating on (GB:ZIG) stock is a Hold with a £375.00 price target. To see the full list of analyst forecasts on ZIGUP plc stock, see the GB:ZIG Stock Forecast page.

ZIGUP plc Reports Strong First Half and Strategic Transformation

ZIGUP plc reported a strong first half of the year, with revenue and profit growth driven by its rental businesses, particularly in Spain and the UK&I. The company is undergoing a strategic transformation to simplify its business model, aiming to achieve significant cost savings by FY2028. With robust financial performance and strategic initiatives, ZIGUP is well-positioned to capitalize on opportunities in the mobility services market, expecting full-year profits to meet or exceed the top of analysts’ expectations.

The most recent analyst rating on (GB:ZIG) stock is a Hold with a £375.00 price target. To see the full list of analyst forecasts on ZIGUP plc stock, see the GB:ZIG Stock Forecast page.

ZIGUP plc Announces Value Creation Plan for Key Personnel

ZIGUP plc has announced the implementation of its Value Creation Plan, approved at the recent Annual General Meeting, which grants awards to key directors and personnel based on the growth in value of the company’s share capital. This plan aims to enhance shareholder returns through sustainable growth, reflecting ZIGUP’s strategic focus on enabling, delivering, and growing its market-leading customer proposition.

The most recent analyst rating on (GB:ZIG) stock is a Hold with a £319.00 price target. To see the full list of analyst forecasts on ZIGUP plc stock, see the GB:ZIG Stock Forecast page.