# Zegona Communications plc (ZEG.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Communication Services / Diversified Telecommunication Services. Price 1630p, market value 3.7 billionp.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Zegona Communications plc reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **PEG: 0.31**. A PEG of 0.31 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.2×**. Each dollar of revenue is priced at 1.2×.
- **Price / book: 17.8×**. The shares trade at 17.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 5.2×**. Enterprise value is 5.2× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 43.2%** (5-yr avg -0.2%). Free cash flow equals 43.2% of the market value, above its five-year average of -0.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Gross margin: 80.2%**. Zegona Communications plc keeps 80.2% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 5.6%**. 5.6% of revenue is left after running the business.
- **Net margin: -5.2%**. The company reported a net loss over the last twelve months.
- **Return on equity: -23.8%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 4.1%**. Return on all capital, debt included, is 4.1%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -2.4%**. Each dollar of assets produces -2.4% of profit.

## Growth
- **Revenue growth (1 yr): 50.4%**. Revenue grew 50.4% over the last year.
- **EPS growth (1 yr): 37.5%**. Earnings per share rose 37.5%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 5.93**. Debt is 5.93 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.6×**. It would take 2.6 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 0.6×**. Operating profit covers interest only 0.6×: fragile.
- **Current ratio: 0.70** (quick 0.68). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 0.84**. A Z-score of 0.84 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Zegona Communications plc does not currently pay a dividend, but it returned 3.3% of its market value through buybacks over the last year.

## Analyst view
- **Analyst consensus: strong_buy** (10 analysts). 10 analysts cover Zegona Communications plc; the consensus is strong_buy, with an average price target of 2145p (+32% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 41.5%** (YTD 17.0%, 3-mo -9.2%). The shares are up 41.5% over twelve months including dividends.
- **From 52-week high: -19.5%** (42.3% above the low). Trading 20% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): 0.75** (volatility 37%). Beta of 0.75 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ZEG.L · Page: https://foliofundamentals.com/stocks/zeg.l

Not investment advice.