Zoo Digital Group (LSE:ZOO) ROE %: -13.76% (As of Sep. 2025)


LSE:ZOO Zoo Digital Group PLC LSE:ZOO
50 GF Score
Price £0.11
GF Value £0.29
Valuation Possible Value Trap
! 4 Warning Signs
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What is Zoo Digital Group ROE %?

Zoo Digital Group LSE:ZOO 50 ROE % is -13.76% as of Sep. 2025. GuruFocus rates LSE:ZOO with a GF Score™ of 50/100 and a GF Value™ of £0.29 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,682 Software companies, Zoo Digital Group ranks worse than 83.86% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zoo Digital Group's annualized net income for the quarter that ended in Sep. 2025 was £-1.99 Mil. Zoo Digital Group's average Total Stockholders Equity over the quarter that ended in Sep. 2025 was £14.48 Mil. Therefore, Zoo Digital Group's annualized ROE % for the quarter that ended in Sep. 2025 was -13.76%.

The historical rank and industry rank for Zoo Digital Group's ROE % or its related term are showing as below:

LSE:ZOO' s ROE % Range Over the Past 10 Years
Min: -171.32   Med: -13.4   Max: 45.42
Current: -32.18

During the past 13 years, Zoo Digital Group's highest ROE % was 45.42%. The lowest was -171.32%. And the median was -13.40%.

LSE:ZOO's ROE % is ranked worse than
83.86% of 2682 companies
in the Software industry
Industry Median: 4.72 vs LSE:ZOO: -32.18

Zoo Digital Group  (LSE:ZOO) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2025 )
=Net Income/Total Stockholders Equity
=-1.992/14.479
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1.992 / 33.13)*(33.13 / 29.0755)*(29.0755 / 14.479)
=Net Margin %*Asset Turnover*Equity Multiplier
=-6.01 %*1.1394*2.0081
=ROA %*Equity Multiplier
=-6.85 %*2.0081
=-13.76 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2025 )
=Net Income/Total Stockholders Equity
=-1.992/14.479
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-1.992 / -1.998) * (-1.998 / -1.708) * (-1.708 / 33.13) * (33.13 / 29.0755) * (29.0755 / 14.479)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.997 * 1.1698 * -5.16 % * 1.1394 * 2.0081
=-13.76 %

Note: The net income data used here is two times the semi-annual (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Zoo Digital Group ROE % Related Terms


Zoo Digital Group ROE % Historical Data

* Premium members only.

The historical data trend for Zoo Digital Group's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Zoo Digital Group ROE % Chart

Zoo Digital Group Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -72.10 9.84 28.31 -68.06 -33.30

Zoo Digital Group Semi-Annual Data
Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -52.94 -66.54 -19.47 -48.32 -13.76

LSE:ZOO vs CRM, SHOP, UBER: ROE % Comparison

For the Software - Application subindustry, Zoo Digital Group's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Zoo Digital Group ROE % vs Software Industry

For the Software industry and Technology sector, Zoo Digital Group's ROE % distribution charts can be found below:

* The bar in red indicates where Zoo Digital Group's ROE % falls into.


LSE:ZOO
50GF Score
Zoo Digital Group PLC LSE:ZOO
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Zoo Digital Group ROE % Calculation

Zoo Digital Group's annualized ROE % for the fiscal year that ended in Mar. 2025 is calculated as

ROE %=Net Income (A: Mar. 2025 )/( (Total Stockholders Equity (A: Mar. 2024 )+Total Stockholders Equity (A: Mar. 2025 ))/ count )
=-6.177/( (21.761+15.341)/ 2 )
=-6.177/18.551
=-33.30 %

Zoo Digital Group's annualized ROE % for the quarter that ended in Sep. 2025 is calculated as

ROE %=Net Income (Q: Sep. 2025 )/( (Total Stockholders Equity (Q: Mar. 2025 )+Total Stockholders Equity (Q: Sep. 2025 ))/ count )
=-1.992/( (15.341+13.617)/ 2 )
=-1.992/14.479
=-13.76 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Sep. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -13.76% mean?
Zoo Digital Group (LSE:ZOO) has a ROE % of -13.76% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zoo Digital Group and its competitors. According to the industry distribution chart, Zoo Digital Group ranks #2249 out of 2682 companies in the Software industry, placing it in the top 83.9%.
Is Zoo Digital Group's ROE % too high?
Zoo Digital Group's current ROE % is -13.76%. Based on the distribution chart, Zoo Digital Group ranks #2249 out of 2682 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Zoo Digital Group has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zoo Digital Group's ROE % compare to CRM and SHOP?
According to the Software industry distribution chart, Zoo Digital Group ranks #2249 out of 2682 companies for ROE %. This places Zoo Digital Group in the lower half of its industry. The industry median ROE % is 4.72. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Software company?
The median ROE % among Software companies is 4.72, based on 2,682 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zoo Digital Group and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoo Digital Group's current ROE % is -13.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoo Digital Group stock overvalued right now?
Based on GuruFocus' analysis, Zoo Digital Group (LSE:ZOO) is currently considered Possible Value Trap. The stock's GF Value™ is £0.29, compared to a current price of £0.11 — trading 61.2% below its estimated fair value. The current ROE % is -13.76%. Zoo Digital Group's overall GF Score™ is 50/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Zoo Digital Group (LSE:ZOO), the current ROE % is -13.76% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Zoo Digital Group (LSE:ZOO) Overvalued in 2026?

Based on GuruFocus' analysis, Zoo Digital Group stock appears to be undervalued. The current stock price of £0.11 is trading 61.2% below its estimated GF Value™ of £0.29. GuruFocus considers Zoo Digital Group to be Possible Value Trap.

Key valuation signals for LSE:ZOO:

  • ROE %: -13.76%
  • GF Value™: £0.29 vs. price of £0.11 (61.2% below fair value)
  • GF Score™: 50/100 with 4 warning signs

No single metric tells the full story. See the LSE:ZOO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zoo Digital Group Business Description

Other Exchanges ZDGGF:USA
Address Angel Street, Floor 2, Castle House, Sheffield, GBR, S3 8LN
Zoo Digital Group PLC through its subsidiaries provides cloud technology services. Its services are used for digital content authoring, video post-production, and localisation for entertainment, publishing, and packaging markets. The company's operating segment includes Media Production and Software solutions. Media Production includes localisation and media services. It generates maximum revenue from the Media Production segment. Geographically, it operates in the United Kingdom and the United States, out of which it derives the majority of its revenue from the United States.
50GF Score

Get the complete analysis for LSE:ZOO

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.11
Price
£0.29
GF Value