# Zip (ZIP.AU)

Canonical: https://gigainvestors.com/s/ZIP.AU

Analysis as of: 2026-10-16T07:41:14.350Z. Financial observations: FY2004–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 2.12 per share; close as of 2026-10-15.

Estimated value: low AUD 0.79 per share, central AUD 1.13 per share, high AUD 1.33 per share. Buy at or below the central value AUD 1.13 per share. Valuation as of 2026-10-16T07:41:14.350Z; scenarios are not confidence intervals.

Expected annual return: 6.8% at the stated quote. About 6.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 7

- Operating margin variation: 1.86×

Chart: Operating margin; fiscal year observations.

- FY2017: -1.22×

- FY2018: -0.60×

- FY2019: -0.15×

- FY2020: -0.07×

- FY2021: -1.05×

- FY2022: -0.27×

- FY2023: -0.33×

- FY2024: 0.52×

- FY2025: 0.25×

- FY2026: 0.11×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -2.3%

- ROIC, second-lowest year: -6.7%

- Typical minus recent gross margin: -8.4 pp

- Typical gross margin (annual median): 53.6%

- Recent gross margin (lower of latest and 3-year median): 62.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: -2.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -5.2%

- FY2018: -3.1%

- FY2019: -1.5%

- FY2020: -0.7%

- FY2021: -15.3%

- FY2022: -4.7%

- FY2023: -6.7%

- FY2024: 13.1%

- FY2025: 10.6%

- FY2026: 4.2%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD -1.1B

- Net income, five-year total: AUD -1.3B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -99.3 pp

- Working capital / revenue, change between three-year averages: -701.3 pp

- Working capital / revenue, final three-year average: 91.9%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: AUD -1.1B

- FY2023: AUD -348M

- FY2024: AUD 47M

- FY2025: AUD 123M

- FY2026: AUD 161M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -3.1% vs 10.6%

- Per-share earnings: -0.07 to 0.06 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 18.5%

- Ordinary dilution, 5-year annual growth: 17.3%

- Market cap gain: AUD 3.9B

- Cumulative retained earnings: AUD -2.1B

- Diluted shares, 10-year annual growth: 18.5%

- Diluted shares, 5-year annual growth: 17.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: AUD 0.13

- Per-share value, starting three-year median: AUD -0.07

- Per-share value, ending three-year median: AUD 0.06

- Buybacks concentrated in cheaper years (correlation): 0.02

- Average buyback yield: 0.6%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 1.7B

- Cumulative net income, 10 years: AUD -2.0B

- ROIC, first three-year median: -3.1%

- ROIC, last three-year median: 10.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD -0.07

- FY2018: AUD -0.08

- FY2019: AUD -0.03

- FY2020: AUD -0.04

- FY2021: AUD -1.19

- FY2022: AUD -1.58

- FY2023: AUD -0.37

- FY2024: AUD 0.00

- FY2025: AUD 0.06

- FY2026: AUD 0.09

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 5.2%

- Receivables to sales index (DSRI): 0.70×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -0.74×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.38×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -7.2%

- FY2018: -7.2%

- FY2019: -4.9%

- FY2020: -2.6%

- FY2021: 6.3%

- FY2022: -10.3%

- FY2023: -4.6%

- FY2024: -8.4%

- FY2025: 3.7%

- FY2026: 5.2%

## Holders

## Price story

Down 67% since Oct 2021 · sales +25.7%

Story as of 2026-10-16T10:00:11.842Z; price observation 2026-10-15.

Price needs cash profits to grow 14.5% a year for ten years

### Sales · FY2025–2026

sales +25.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 16M 

- FY2018: AUD 39M 

- FY2019: AUD 82M 

- FY2020: AUD 161M 

- FY2021: AUD 394M 

- FY2022: AUD 598M 

- FY2023: AUD 688M 

- FY2024: AUD 874M 

- FY2025: AUD 1.1B 

- FY2026: AUD 1.3B 

### Gross margin · FY2026

gross margin 62%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: 19.5% 

- FY2019: 37.4% 

- FY2020: 58.2% 

- FY2021: 42.3% 

- FY2022: 59.3% 

- FY2023: 49.0% 

- FY2024: 66.4% 

- FY2025: 62.3% 

- FY2026: 62.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in credit services; annual sales are AUD 1.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); FY2026: revenue 1347358000; grossProfit 834813000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ZIP.AU: Zip Co Limited engages in the provision of digital retail finance, personal finance, and payments solutions in Australia and the United States. The company offers retail line of credit products and personal loans; retail installment products; and Buy Now Pay Later installment products to consumers. It also provides unsecured loans through banking partners, as well as payment options; online and in-store; access to point-of-sale credit; and digital payment services. The company was formerly known as ZipMoney Limited and changed its name to Zip Co Limited in December 2017. Zip Co Limited was incorporated in 2009 and is headquartered in Sydney, Australia.

### Why customers stay

Margins ranged from 62% to 66.4% during 2024–26; it lost 2.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); FY2024: grossProfit / revenue = 66.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); FY2025: grossProfit / revenue = 62.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); FY2026: grossProfit / revenue = 62%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); 10-year return on capital observations [[2017,-0.05156600993107842],[2018,-0.03132492974829492],[2019,-0.015284502839671083],[2020,-0.006879840212961093],[2021,-0.15257166836175529],[2022,-0.04703907827799252],[2023,-0.06746952307837072],[2024,0.13118582007527396],[2025,0.10635883706470124],[2026,0.042175489541880704]]; median -0.023304716293983. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 6 of 10 years; bought back AUD 120.9 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); FY2024: growth capex 0; upkeep 17482000; owner earnings 47175200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); FY2025: growth capex 0; upkeep 19493000; owner earnings 123116400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); FY2026: growth capex 0; upkeep 1317000; owner earnings 160781400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); Dividend observations: [[2017,50473317],[2018,0],[2019,551000],[2020,473605000],[2021,1542844000],[2022,1195390000],[2023,757849000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); FY2026: cash repurchases 120864000 AUD.

### Are managers owners

Insiders own 4.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ZIP.AU SharesStats.PercentInsiders = 4.417999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 14.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:14.350Z); Ten-year compound average after fade. Initial solved rate 0.1958875879261076. Price 2.12; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -0.03633413116488428 → FY2026 0.1266509258954382. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 0.88 per share

- 2016-11: AUD 0.84 per share

- 2016-12: AUD 0.75 per share

- 2017-01: AUD 0.78 per share

- 2017-02: AUD 0.79 per share

- 2017-03: AUD 0.76 per share

- 2017-04: AUD 0.71 per share

- 2017-05: AUD 0.68 per share

- 2017-06: AUD 0.65 per share

- 2017-07: AUD 0.68 per share

- 2017-08: AUD 0.75 per share

- 2017-09: AUD 0.67 per share

- 2017-10: AUD 0.67 per share

- 2017-11: AUD 0.67 per share

- 2017-12: AUD 0.70 per share

- 2018-01: AUD 1.21 per share

- 2018-02: AUD 1.03 per share

- 2018-03: AUD 0.78 per share

- 2018-04: AUD 0.87 per share

- 2018-05: AUD 0.85 per share

- 2018-06: AUD 0.87 per share

- 2018-07: AUD 0.87 per share

- 2018-08: AUD 1.14 per share

- 2018-09: AUD 1.19 per share

- 2018-10: AUD 0.94 per share

- 2018-11: AUD 1.08 per share

- 2018-12: AUD 1.09 per share

- 2019-01: AUD 1.15 per share

- 2019-02: AUD 1.55 per share

- 2019-03: AUD 1.71 per share

- 2019-04: AUD 3.06 per share

- 2019-05: AUD 3.20 per share

- 2019-06: AUD 3.31 per share

- 2019-07: AUD 3.26 per share

- 2019-08: AUD 3.41 per share

- 2019-09: AUD 4.65 per share

- 2019-10: AUD 3.76 per share

- 2019-11: AUD 3.92 per share

- 2019-12: AUD 3.54 per share

- 2020-01: AUD 4.04 per share

- 2020-02: AUD 2.72 per share

- 2020-03: AUD 1.59 per share

- 2020-04: AUD 2.39 per share

- 2020-05: AUD 3.75 per share

- 2020-06: AUD 5.23 per share

- 2020-07: AUD 5.95 per share

- 2020-08: AUD 9.16 per share

- 2020-09: AUD 6.17 per share

- 2020-10: AUD 5.72 per share

- 2020-11: AUD 6.06 per share

- 2020-12: AUD 5.29 per share

- 2021-01: AUD 7.27 per share

- 2021-02: AUD 10.40 per share

- 2021-03: AUD 7.38 per share

- 2021-04: AUD 8.06 per share

- 2021-05: AUD 7.04 per share

- 2021-06: AUD 7.57 per share

- 2021-07: AUD 6.64 per share

- 2021-08: AUD 6.83 per share

- 2021-09: AUD 7.06 per share

- 2021-10: AUD 6.50 per share

- 2021-11: AUD 5.17 per share

- 2021-12: AUD 4.33 per share

- 2022-01: AUD 3.16 per share

- 2022-02: AUD 2.21 per share

- 2022-03: AUD 1.49 per share

- 2022-04: AUD 1.10 per share

- 2022-05: AUD 0.92 per share

- 2022-06: AUD 0.44 per share

- 2022-07: AUD 1.14 per share

- 2022-08: AUD 0.96 per share

- 2022-09: AUD 0.69 per share

- 2022-10: AUD 0.61 per share

- 2022-11: AUD 0.74 per share

- 2022-12: AUD 0.51 per share

- 2023-01: AUD 0.66 per share

- 2023-02: AUD 0.51 per share

- 2023-03: AUD 0.56 per share

- 2023-04: AUD 0.51 per share

- 2023-05: AUD 0.54 per share

- 2023-06: AUD 0.41 per share

- 2023-07: AUD 0.45 per share

- 2023-08: AUD 0.31 per share

- 2023-09: AUD 0.27 per share

- 2023-10: AUD 0.29 per share

- 2023-11: AUD 0.41 per share

- 2023-12: AUD 0.64 per share

- 2024-01: AUD 0.75 per share

- 2024-02: AUD 0.96 per share

- 2024-03: AUD 1.39 per share

- 2024-04: AUD 1.25 per share

- 2024-05: AUD 1.14 per share

- 2024-06: AUD 1.46 per share

- 2024-07: AUD 1.91 per share

- 2024-08: AUD 2.40 per share

- 2024-09: AUD 2.75 per share

- 2024-10: AUD 3.02 per share

- 2024-11: AUD 3.42 per share

- 2024-12: AUD 2.96 per share

- 2025-01: AUD 2.44 per share

- 2025-02: AUD 2.46 per share

- 2025-03: AUD 1.61 per share

- 2025-04: AUD 1.73 per share

- 2025-05: AUD 1.99 per share

- 2025-06: AUD 3.07 per share

- 2025-07: AUD 3.23 per share

- 2025-08: AUD 4.26 per share

- 2025-09: AUD 4.42 per share

- 2025-10: AUD 3.87 per share

- 2025-11: AUD 3.40 per share

- 2025-12: AUD 3.29 per share

- 2026-01: AUD 2.65 per share

- 2026-02: AUD 1.91 per share

- 2026-03: AUD 1.55 per share

- 2026-04: AUD 2.43 per share

- 2026-05: AUD 2.30 per share

- 2026-06: AUD 3.24 per share

- 2026-07: AUD 2.55 per share

- 2026-08: AUD 2.50 per share

- 2026-09: AUD 2.03 per share

- 2026-10: AUD 2.12 per share

## Annual estimated value (AUD per share)

- FY2026: low AUD 0.78 per share, central AUD 1.11 per share, high AUD 1.31 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:46:59.271Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.