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Zegona Communications
(LSE:ZEG)
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Rating:51Neutral
Price Target:
1,457.00 p
▼(-11.48% Downside)
Action:Reiterated
Date:06/22/26
The score is primarily supported by strong operating cash flow and free cash flow alongside rapid revenue growth and high margins, but it is held back by very high leverage and continued net losses. Weak technical momentum and a negative P/E further temper the overall outlook.
Positive Factors
Strong cash generation
Material operating and free cash flow (OCF ~£2.48bn; FCF ~£1.85bn, >400% YoY) provides durable internal funding to service debt, support portfolio investments and absorb volatility. Consistent cash conversion underpins deleveraging and strategic optionality over a multi‑year horizon.
Negative Factors
Very high leverage
A capital structure with ~£4.94bn debt versus ~£0.80bn equity (debt/equity ~6.2x) materially increases refinancing, covenant and interest‑rate sensitivity. High leverage limits flexibility for new investments and makes sustained deleveraging or restructurings necessary to reduce solvency risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Material operating and free cash flow (OCF ~£2.48bn; FCF ~£1.85bn, >400% YoY) provides durable internal funding to service debt, support portfolio investments and absorb volatility. Consistent cash conversion underpins deleveraging and strategic optionality over a multi‑year horizon.
Read all positive factors
Zegona Communications (ZEG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.82B
Dividend Yield12.38%
Average Volume (3M)337.45K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees2,904
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding225,503,800
10 Day Avg. Volume284,543
30 Day Avg. Volume337,451
Financial Highlights & Ratios
PEG Ratio1.67
Price to Book (P/B)15.06
Price to Sales (P/S)3.31
P/FCF Ratio6.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,375.00Price Target Upside44.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Zegona Communications Business Overview & Revenue Model
Company Description
Zegona Communications plc is an investment vehicle primarily engaged in acquiring and developing businesses within the telecommunications, media, and technology sectors across Europe. Founded in 2015, this firm operates out of its headquarters in ...
How the Company Makes Money
Zegona’s earnings are primarily driven by investment returns rather than selling a standalone product or service. Its principal sources of value and potential income include: (1) Capital appreciation on equity investments: If portfolio companies i...
Zegona Communications Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
32
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Sep 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.79B | 3.63B | 2.41B | 0.00 | 0.00 | 0.00 |
| Gross Profit | 1.43B | 2.91B | 1.95B | 0.00 | 0.00 | 0.00 |
| EBITDA | 909.72M | 1.64B | 917.89M | -4.82M | -3.29M | -33.70M |
| Net Income | -28.20M | -189.41M | -351.04M | -15.55M | -3.31M | 79.91M |
Balance Sheet | ||||||
| Total Assets | 8.10B | 7.94B | 8.49B | 1.20B | 10.94M | 16.02M |
| Cash, Cash Equivalents and Short-Term Investments | 302.86M | 518.81M | 207.99M | 4.65M | 5.89M | 10.56M |
| Total Debt | 4.94B | 4.72B | 4.97B | 0.00 | 0.00 | 106.00K |
| Total Liabilities | 7.30B | 8.81B | 7.67B | 17.60M | 402.00K | 1.56M |
| Stockholders Equity | 796.91M | 796.91M | 816.59M | 1.18B | 10.54M | 14.45M |
Cash Flow | ||||||
| Free Cash Flow | 345.61M | 1.85B | 1.01B | -3.93M | -3.92M | -39.18M |
| Operating Cash Flow | 464.99M | 2.48B | 1.14B | -3.93M | -3.92M | -39.14M |
| Investing Cash Flow | -134.43M | 424.42M | -3.31B | -289.76M | 25.00K | 439.51M |
| Financing Cash Flow | -249.19M | -2.59B | 2.34B | 292.29M | -106.00K | -408.77M |
Zegona Communications Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | £1.02B | 15.00 | 18.45% | 1.95% | 7.45% | 8.37% | |
67 Neutral | £12.50B | 23.84 | 23.72% | 1.54% | 26.75% | 104.78% | |
62 Neutral | £29.80B | -76.19 | -0.79% | 3.09% | 11.08% | 87.73% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | £19.63B | 13.76 | 11.37% | 4.13% | -3.55% | 2.13% | |
55 Neutral | £2.06B | 129.18 | 73.63% | <0.01% | 5.99% | -67.74% | |
51 Neutral | £3.82B | -65.91 | -23.48% | 12.38% | ― | ― |
* Communication Services Sector Average
GB:ZEG
Zegona Communications
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57.22%
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Zegona Communications Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Zegona Director Boosts Stake with Share Purchase
Positive
Aug 7, 2026
Zegona Communications plc has disclosed that independent non-executive director Tim Pennington acquired 6,588 ordinary shares in the company at 15.20 pence per share on 5 August 2026. The purchase, conducted on the London Stock Exchange, gives Pen...
Business Operations and StrategyRegulatory Filings and Compliance
Zegona Confirms Total Voting Rights at Over 225 Million Shares
Positive
Aug 3, 2026
Zegona Communications has confirmed that, as of 31 July 2026, its issued share capital consists of 225,503,802 ordinary shares of 1 pence each, with no shares held in treasury, resulting in an equal number of total voting rights. Shareholders and ...
Regulatory Filings and Compliance
Zegona Confirms Share Capital and Voting Rights Structure
Positive
Aug 3, 2026
Zegona Communications plc has confirmed that, as of 31 July 2026, its issued share capital consists of 225,503,802 ordinary shares of 1 pence each, with no shares held in treasury, resulting in an equal number of total voting rights. The company e...
Business Operations and StrategyShareholder Meetings
Zegona Shareholders Back All Resolutions at 2026 AGM
Positive
Jul 30, 2026
Zegona Communications plc reported that all resolutions at its Annual General Meeting on 30 July 2026 were approved by shareholders, with approximately 80% of the company’s issued ordinary share capital represented at the meeting. The strong...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Zegona Cancels Newly Repurchased Shares as Buyback Programme Advances
Positive
Jul 20, 2026
Zegona Communications plc has continued executing its previously announced share buyback programme, repurchasing 15,000 ordinary shares between 13 and 17 July 2026 via Canaccord Genuity at a volume-weighted average price of 1,491.67 pence. The tra...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Zegona Builds Momentum at Vodafone Spain as Refinancing Strengthens Balance Sheet
Positive
Jul 15, 2026
Zegona Communications PLC, a London-listed investor in European telecommunications, media and technology businesses, has built its strategy around operational turnarounds and cashflow growth. Since acquiring Vodafone Spain in 2024, the group has f...
Business Operations and StrategyStock Buyback
Zegona Cancels Latest Share Buybacks, Tightening Equity Base
Positive
Jul 13, 2026
Zegona Communications plc has continued to execute its previously announced share buyback programme, repurchasing 25,000 ordinary shares between 6 and 10 July 2026 through Canaccord Genuity at a volume-weighted average price of 1,469.68 pence. The...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Zegona Cancels Repurchased Shares, Updates Voting Rights After Buyback
Positive
Jul 6, 2026
Zegona Communications has repurchased 45,000 ordinary shares under its ongoing share buyback programme, executed through Canaccord Genuity between 29 June and 3 July 2026 at a venue volume‑weighted average price of 1,633.52 pence. The compan...
Regulatory Filings and Compliance
Zegona Confirms Total Voting Rights at 225.6 Million Shares
Positive
Jul 1, 2026
Zegona Communications has confirmed that as of 30 June 2026 its issued share capital consists of 225,638,802 ordinary shares, all carrying voting rights and with no shares held in treasury. This figure now serves as the reference denominator for i...
Business Operations and StrategyRegulatory Filings and Compliance
Zegona Director Increases Stake with £48,000 Share Purchase
Positive
Jul 1, 2026
Zegona Communications has disclosed that non-executive director Suzi Williams bought 2,797 ordinary shares in the company on 29 June 2026, at an average price of £17.157 per share on the London Stock Exchange. The purchase increases her benef...
Business Operations and StrategyStock Buyback
Zegona Cancels New Buyback Shares, Trims Share Count to 225.6m
Positive
Jun 29, 2026
Zegona Communications has continued its share buyback programme, repurchasing 125,000 ordinary shares between 22 and 26 June 2026 at a volume-weighted average price of 1,676.67 pence. The purchases were executed through Canaccord Genuity and form ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Zegona Cuts Interest Costs with €3.7bn Refinancing After Vodafone Spain Deal
Positive
Jun 26, 2026
Zegona Communications has completed a landmark €3.7 billion refinancing of its senior secured notes and loan facilities, cutting its annual interest cost from €230 million to about €170 million and pushing debt maturities beyond ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Zegona cancels 125,000 shares after latest buyback tranche
Positive
Jun 22, 2026
Zegona Communications has repurchased 125,000 ordinary shares between 15 and 19 June 2026 under its ongoing buyback programme, at a volume-weighted average price of 1,719 pence, through broker Canaccord Genuity. The company plans to cancel these s...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Zegona Releases FY26 Annual Report and Sets July AGM
Neutral
Jun 16, 2026
Zegona Communications has released its Annual Report for the financial year ended 31 March 2026 and made available Vodafone Spain’s FY26 results presentation for professional investors, underscoring the integration and performance disclosure...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Zegona Cancels 125,000 Shares After Latest Buyback Tranche
Positive
Jun 15, 2026
Zegona Communications has repurchased 125,000 ordinary shares between 8 and 12 June 2026 under its ongoing share buyback programme, paying a volume-weighted average price of 1,781.79 pence per share. The company plans to cancel these shares, reduc...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Zegona Cancels 125,000 Shares After Latest Buyback Tranche
Positive
Jun 8, 2026
Zegona Communications has repurchased 125,000 ordinary shares over the period 1–5 June 2026 under its previously announced buyback programme, at a volume-weighted average price of 1,801.11 pence per share. The company plans to cancel these s...
Regulatory Filings and Compliance
Zegona Confirms Total Voting Rights at 226.2 Million Shares
Neutral
Jun 1, 2026
Zegona Communications has confirmed that, as of 31 May 2026, its issued share capital consists of 226,163,802 ordinary shares of 1 pence each, with no shares held in treasury. This figure, representing the company’s total voting rights, serv...
Stock Buyback
Zegona Cancels 100,000 Shares After Latest Buyback Tranche
Positive
Jun 1, 2026
Zegona Communications has repurchased 100,000 ordinary shares between 26 and 29 May 2026 under its ongoing buyback programme, at a volume-weighted average price of about 1,819.54 pence. The company plans to cancel these shares, reducing its share ...
Business Operations and StrategyStock Buyback
Zegona Tightens Share Base With Latest Buyback and Cancellation
Positive
May 26, 2026
Zegona Communications has repurchased 125,000 ordinary shares between 18 and 22 May 2026 under its ongoing buyback programme, at a volume-weighted average price of 1,777.92 pence per share. The company plans to cancel these shares, reducing its sh...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Zegona Cancels 375,000 Shares in Ongoing Buyback
Positive
May 18, 2026
Zegona Communications has repurchased 375,000 ordinary shares under its ongoing buyback programme, executed through Canaccord Genuity between 11 and 15 May at a volume-weighted average price of 1,785.37 pence. The company plans to cancel these sha...
Stock BuybackRegulatory Filings and Compliance
Zegona Cancels 255,000 Shares After Buyback, Tightening Share Capital
Positive
May 11, 2026
Zegona Communications has repurchased 255,000 ordinary shares between 5 and 8 May 2026 under its ongoing share buyback programme, at a volume-weighted average price of 1,810.78 pence. The company plans to cancel these shares, reducing its share co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.