Zip Co Ltd. (YRRA) AI Stock Analysis
Zip Co Ltd.
(Frankfurt:YRRA)
No summary available
Zip Co Ltd. (YRRA) vs. iShares MSCI Germany ETF (EWG)
- Market Cap
- EUR 2.23B
- Dividend Yield
- ―
- Average Volume (3M)
- ―
- Price to Earnings (P/E)
- 20.4
- Beta (1Y)
- 1.49
- Revenue Growth
- 21.79%
- EPS Growth
- 45.38%
- Country
- Germany
- Employees
- 877
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Financial - Credit Services
Zip Co Ltd. Business Overview & Revenue Model
Company Description
Zip Co Limited delivers digital financial and payment solutions to a diverse client base, including individual consumers and small-to-medium sized businesses (SMEs). Its extensive global presence spans Australia, Canada, the Czech Republic, Mexico, N...
Zip Co Ltd. Earnings Call Summary
The call highlighted many strong operational and financial achievements: double‑digit growth across key top‑line metrics, notable margin expansion (420 bps to 20%), record cash earnings (+58% to $269M), and pronounced U.S. outperformance (TTV +42.5%, revenue +44%, U.S. operating margin 25%). Management also emphasized AI adoption, product innovation and active capital returns (completed $150M buybacks and announced further buybacks). Offsets include the strategic wind‑down of New Zealand, some ANZ provisioning overlay due to macro uncertainty, interest rate/funding sensitivity and the early stage of several new product initiatives (e.g., Pay‑in‑2). Overall, positives (strong growth, profitability, funding progress and capital returns) materially outweigh the challenges, though execution and macro risks remain monitored.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Zip's FY'27 guidance targets continued strong growth and margin expansion: U.S. TTV growth of at least 30% (July >30%), group cash EBTDA of $340m (~+26% YoY), a group cash NTM margin of 3.8%–4.0% and an operating margin of 20%–22% (up from 20% in FY'26 after a 420bp expansion). Credit and portfolio targets include managing U.S. losses within a 1.5%–2.0% of TTV range, while operational priorities emphasize scaling Pay‑in‑Z and new products and investing in the U.S. within the guidance envelope. Capital and funding initiatives disclosed to support the plan include an on‑market buyback notice of up to A$50m (after A$150m completed in FY'26), consideration of a share consolidation (AGM Nov), continued U.S. funding maturation (USD 283m warehouse established, planned ~USD 300m rated ABS to refinance), AU cost of funds ~6.4% and year‑end available cash/liquidity of $247m (operating cash inflows $257m; non‑operating outflows $148m).
Zip Co Ltd. Peers Comparison
Overall Rating
AU:PLT70Outperform
AU:HUM57Neutral
AU:MME52Neutral
AU:WZR52Neutral
AU:LFS50Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AU:PLT | 70Outperform | AUD 138.30M | 9.25 | 20.23% | ― | 20.39% | -42.91% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| AU:HUM | 57Neutral | AUD 212.34M | 15.03 | 2.93% | 2.13% | -4.83% | -55.49% |
| AU:MME | 52Neutral | AUD 47.51M | -1.23 | -41.92% | ― | 28.46% | 40.67% |
| AU:WZR | 52Neutral | AUD 66.99M | -8.60 | -16.10% | ― | 18.86% | 17.31% |
| AU:LFS | 50Neutral | AUD 847.38M | 7.71 | 8.74% | 12.88% | 4.20% | 85.51% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DE:YRRA | Zip Co Ltd. | 1.09 | -1.05 | -48.97% | |
| AU:HUM | Humm Group Limited | 0.47 | -0.14 | -23.45% | |
| AU:WZR | Wisr Ltd. | 0.04 | 0.01 | 23.33% | |
| AU:PLT | Plenti Group Ltd. | 0.75 | -0.57 | -43.18% | |
| AU:LFS | Latitude Group Holdings Ltd. | 0.81 | -0.20 | -19.70% | |
| AU:MME | MoneyMe Ltd. | 0.06 | -0.05 | -48.18% |
Disclaimer
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