Zegona Communications

ZEG.L

Telecommunications Services · Communication Services

Price

1,588.00 GBp

+12.00 (+0.76%)

Market Cap

£3.58B

Exchange

London Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Based on the IPO prospectus (annual filing). This score will refine automatically once the company reports its first quarters.

Data as of Aug 23, 2026 · filings through Sep 30, 2025

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Mixed

Stability

Weak

Valuation

Data not available

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Share count rising — dilution

+279.1% over 5y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 168.6M (2021) → 639.2M (2026)

Winston Score History

The full picture

Zegona Communications is a British company that buys and improves telecom businesses in Europe. Its main asset is Vodafone Spain, one of Spain's largest mobile and broadband providers, which Zegona acquired in 2024. The company sells mobile phone plans, home internet, and TV services to millions of consumers and businesses across Spain.

Zegona makes money by charging customers monthly fees for mobile, broadband, and pay-TV subscriptions, which explains its high gross margin. It operates almost entirely in Spain right now, making it a focused, single-market telecom operator rather than a diversified group. The company carries significant debt from the Vodafone Spain acquisition and is currently unprofitable at the operating level, so its key challenge is cutting costs, growing subscribers, and generating enough cash flow to service that debt load while competing against larger rivals like Telefónica and Orange in a crowded Spanish market.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

Revenue data limited

EPS Growth

YoY Growth Rate

EPS data limited

R&D Spend

€0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

23.1%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

€785M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

80.2%

Premium pricing power — 80.2% gross margin

Profit after running costs

Operating Margin

5.6%

Thin — 5.6% operating margin

Return on the money invested

ROCE

4.5%

Weak — 4.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+50.4%

—

Fast-growing sales (+50.4% YoY)

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

N/A

Data not available

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

—

Data not available

Spare cash per sale

FCF Margin

51.0%

Converts sales into free cash efficiently (51.0%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

4.68

Heavy debt load (4.68)

Covers its interest

Interest Cover

0.55x

Dangerous — barely covers interest (0.6x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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