Zegona Communications ZEG.L
United KingdomCommunication Services · Telecom ServicesLondon Stock Exchange · GBP
22.01 GBP (+22.6%)
13 analysts
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Zegona Communications is a telecommunications company that invests in and operates broadband and mobile assets in Europe, seeking to improve their operational and financial performance.
Listed on London Stock Exchange · Symbol ZEG.L · LON: ZEG · Currency GBP
Key points
from its scores- ✓High-quality business8.9
- ✓Good share-price trend8.2
- ✕Unfavourable risk and backdrop0.2
- ✕Little or no dividend1.4
- !Somewhat demanding valuation5.0
AI analysis
bottom line, main risk, context and newsHold or buy on pullbacks, given strong momentum and cash generation, but watch the high leverage.
Zegona Communications shows acceptable financial health (score 6.54) with leverage of 3.38x EBITDA, but stands out for its high business quality (score 8.93) thanks to an 80.23% gross margin and strong 71.71% cash conversion. Its valuation is attractive (18.93% FCF yield) and momentum is very positive (32.71% over 12 months), although it pays no dividend.
The main risk is its high leverage (Net Debt/EBITDA of 3.38) in an uncertain interest rate environment, which could pressure its financial health if cash flow weakens.
Context and risks
Zegona Communications operates in the UK telecommunications sector, a market with a stable but periodically reviewed regulatory framework for wholesale prices and coverage obligations. The main risk is the country's moderate governance, which may lead to regulatory changes affecting margins, though there is no specific or imminent geopolitical or legal risk to the company.
Is Zegona Communications stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades 25% below the Communication Services median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 7.2 | 9.6 | −25% |
| Price / sales | 1.3 | 1.9 | −32% |
Sector: median of the 102 Communication Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Communication Services: 6.3).
Average analyst target: 22.01 GBP, +22.6% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.5 (sector 6.6).
Classic formulas with standard assumptions (5.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Communication Services medianValuation
- Forward P/E
- 13.9
- EV / EBITDA
- 7.2
- Price / sales
- 1.3
- Market cap
- 4.0B GBP
- Enterprise value
- 9.0B EUR
Profitability
- ROA
- 2.9%
- Gross margin
- 80.2%
- Operating margin
- 10.0%
- Net margin
- −5.2%
- Free cash flow
- 901.7M EUR
- FCF yield
- 18.9%
- Cash conversion
- 72%
Solvency
- Total debt
- 4.8B EUR
- Net debt
- 4.2B EUR
- Cash
- 518.8M EUR
- EBITDA
- 1.3B EUR
- Net debt / EBITDA
- 3.38
- Current ratio
- 0.70
- Quick ratio
- 0.59
Growth
- EPS (TTM)
- −0.26 GBP
- EPS (forward)
- 1.30 GBP
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 3.39
- Analyst consensus
- Buy (13)
- Target price
- 22.01 GBP
Recent news
All ZEG.L news →Compare it with its sector
All 102 in Communication Services →Frequently asked questions about Zegona Communications
Is Zegona Communications stock cheap or expensive?
On EV / EBITDA, it trades 25% below the Communication Services median. Valuation score: 5.0 out of 10 (median for Communication Services: 6.3). Average analyst target: 22.01 GBP, +22.6% versus the price. This is not investment advice.
What score does Zegona Communications get on MeridIAn Screener?
It scores 4.6 out of 10, rank 1,863 of 2,130 (better than 13% of the companies analysed). Its strongest category is Quality / Moat (8.9) and its weakest, Risk & Context (0.2). Analysis of 08/10/2026.
How much is Zegona Communications worth on the stock market?
Its market capitalisation is 4.0B GBP and its enterprise value, debt included, is 9.0B GBP.
How much debt does Zegona Communications have?
Its net debt (debt minus cash) is 4.2B EUR. That is 3.38 times its EBITDA; the Communication Services median is 2.19.
Does Zegona Communications pay a dividend?
It pays no dividend, or almost none.
How has Zegona Communications stock performed over the last year?
It has risen 40.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 20.25 GBP. Past performance does not guarantee future results.
What do analysts think of Zegona Communications?
13 analysts cover it; their average recommendation is “Buy” and their average target is 22.01 GBP (+22.6% versus the price). It is an estimate, not market data.