ZIFF DAVIS INC (ZD) Stock Fundamental Analysis
USA - NASDAQ:ZD - US48123V1026 - Common Stock
36.66 USD
-0.98 (-2.6%)
36.66 USD
0 (0%)
Taking everything into account, ZD scores 5 out of 10 in our fundamental rating. ZD was compared to 69 industry peers in the Interactive Media & Services industry. ZD scores excellent on profitability, but there are some minor concerns on its financial health. ZD is valued quite cheap, but it does not seem to be growing. This makes ZD very considerable for value investing!
1. Profitability
1.1 Basic Checks
ZD had positive earnings in the past year.
In the past year ZD had a positive cash flow from operations.
In the past 5 years ZD has always been profitable.
Each year in the past 5 years ZD had a positive operating cash flow.
1.2 Ratios
ZD has a Return On Assets (1.88%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 3.59%, ZD is doing good in the industry, outperforming 63.77% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.43%, ZD is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ZD is significantly below the industry average of 12.98%.
The last Return On Invested Capital (4.43%) for ZD is above the 3 year average (4.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 3.59% | ||
| ROIC | 4.43% |
ROA(3y)1.57%
ROA(5y)4.39%
ROE(3y)3.01%
ROE(5y)9.34%
ROIC(3y)4.24%
ROIC(5y)3.97%
1.3 Margins
With a decent Profit Margin value of 4.57%, ZD is doing good in the industry, outperforming 60.87% of the companies in the same industry.
ZD's Profit Margin has declined in the last couple of years.
The Operating Margin of ZD (14.03%) is better than 79.71% of its industry peers.
ZD's Operating Margin has improved in the last couple of years.
ZD has a Gross Margin of 86.40%. This is amongst the best in the industry. ZD outperforms 86.96% of its industry peers.
ZD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.03% | ||
| PM (TTM) | 4.57% | ||
| GM | 86.4% |
OM growth 3Y-2.32%
OM growth 5Y11.07%
PM growth 3Y-49.55%
PM growth 5Y-26.37%
GM growth 3Y-0.39%
GM growth 5Y0.85%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZD is destroying value.
The number of shares outstanding for ZD has been reduced compared to 1 year ago.
The number of shares outstanding for ZD has been reduced compared to 5 years ago.
The debt/assets ratio for ZD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.85 indicates that ZD is not a great score, but indicates only limited risk for bankruptcy at the moment.
ZD has a Altman-Z score (1.85) which is in line with its industry peers.
ZD has a debt to FCF ratio of 3.71. This is a good value and a sign of high solvency as ZD would need 3.71 years to pay back of all of its debts.
ZD has a Debt to FCF ratio of 3.71. This is in the better half of the industry: ZD outperforms 63.77% of its industry peers.
ZD has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
ZD has a worse Debt to Equity ratio (0.47) than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.71 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.56
WACC7.91%
2.3 Liquidity
ZD has a Current Ratio of 1.59. This is a normal value and indicates that ZD is financially healthy and should not expect problems in meeting its short term obligations.
ZD has a worse Current ratio (1.59) than 60.87% of its industry peers.
ZD has a Quick Ratio of 1.59. This is a normal value and indicates that ZD is financially healthy and should not expect problems in meeting its short term obligations.
ZD has a Quick ratio of 1.59. This is in the lower half of the industry: ZD underperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
ZD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.10%.
Measured over the past years, ZD shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.19% on average per year.
Looking at the last year, ZD shows a small growth in Revenue. The Revenue has grown by 5.93% in the last year.
Measured over the past years, ZD shows a small growth in Revenue. The Revenue has been growing by 5.94% on average per year.
EPS 1Y (TTM)5.1%
EPS 3Y-9.84%
EPS 5Y-1.19%
EPS Q2Q%5.08%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y-0.35%
Revenue growth 5Y5.94%
Sales Q2Q%9.79%
3.2 Future
ZD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.19% yearly.
Based on estimates for the next years, ZD will show a small growth in Revenue. The Revenue will grow by 3.69% on average per year.
EPS Next Y5.37%
EPS Next 2Y6.79%
EPS Next 3Y6.19%
EPS Next 5YN/A
Revenue Next Year4.33%
Revenue Next 2Y4.14%
Revenue Next 3Y3.69%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.55, the valuation of ZD can be described as very cheap.
89.86% of the companies in the same industry are more expensive than ZD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ZD to the average of the S&P500 Index (27.41), we can say ZD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.82, the valuation of ZD can be described as very cheap.
ZD's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZD is cheaper than 97.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. ZD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.55 | ||
| Fwd PE | 4.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZD is valued cheaper than 94.20% of the companies in the same industry.
91.30% of the companies in the same industry are more expensive than ZD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.45 | ||
| EV/EBITDA | 4.56 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ZD may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y6.79%
EPS Next 3Y6.19%
5. Dividend
5.1 Amount
ZD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.66
-0.98 (-2.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners110.56%
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner Change5.24%
Market Cap1.50B
Analysts77.33
Price Target47.09 (28.45%)
Short Float %10.38%
Short Ratio7.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.87%
Min EPS beat(2)-11.23%
Max EPS beat(2)1.49%
EPS beat(4)2
Avg EPS beat(4)-2.27%
Min EPS beat(4)-11.23%
Max EPS beat(4)5.56%
EPS beat(8)3
Avg EPS beat(8)-2.04%
EPS beat(12)6
Avg EPS beat(12)-1.71%
EPS beat(16)9
Avg EPS beat(16)-0.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-5.57%
Max Revenue beat(4)1.14%
Revenue beat(8)1
Avg Revenue beat(8)-2.86%
Revenue beat(12)2
Avg Revenue beat(12)-2.71%
Revenue beat(16)2
Avg Revenue beat(16)-4.02%
PT rev (1m)4.92%
PT rev (3m)4.92%
EPS NQ rev (1m)-1.6%
EPS NQ rev (3m)1.58%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-1.55%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.55 | ||
| Fwd PE | 4.82 | ||
| P/S | 1.04 | ||
| P/FCF | 6.45 | ||
| P/OCF | 4.4 | ||
| P/B | 0.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.56 |
EPS(TTM)6.6
EY18%
EPS(NY)7.61
Fwd EY20.75%
FCF(TTM)5.69
FCFY15.51%
OCF(TTM)8.34
OCFY22.75%
SpS35.3
BVpS44.94
TBVpS-4.25
PEG (NY)1.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 3.59% | ||
| ROCE | 7.19% | ||
| ROIC | 4.43% | ||
| ROICexc | 5.29% | ||
| ROICexgc | 35.58% | ||
| OM | 14.03% | ||
| PM (TTM) | 4.57% | ||
| GM | 86.4% | ||
| FCFM | 16.11% |
ROA(3y)1.57%
ROA(5y)4.39%
ROE(3y)3.01%
ROE(5y)9.34%
ROIC(3y)4.24%
ROIC(5y)3.97%
ROICexc(3y)5.44%
ROICexc(5y)5.07%
ROICexgc(3y)37.52%
ROICexgc(5y)N/A
ROCE(3y)6.87%
ROCE(5y)6.44%
ROICexcg growth 3Y-8.29%
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.96%
ROICexc growth 5Y15.52%
OM growth 3Y-2.32%
OM growth 5Y11.07%
PM growth 3Y-49.55%
PM growth 5Y-26.37%
GM growth 3Y-0.39%
GM growth 5Y0.85%
F-Score7
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.71 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 48.39% | ||
| Cap/Sales | 7.51% | ||
| Interest Coverage | 6.49 | ||
| Cash Conversion | 79.9% | ||
| Profit Quality | 352.73% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 1.85 |
F-Score7
WACC7.91%
ROIC/WACC0.56
Cap/Depr(3y)47.23%
Cap/Depr(5y)45.52%
Cap/Sales(3y)7.74%
Cap/Sales(5y)7.9%
Profit Quality(3y)440.1%
Profit Quality(5y)331.37%
High Growth Momentum
Growth
EPS 1Y (TTM)5.1%
EPS 3Y-9.84%
EPS 5Y-1.19%
EPS Q2Q%5.08%
EPS Next Y5.37%
EPS Next 2Y6.79%
EPS Next 3Y6.19%
EPS Next 5YN/A
Revenue 1Y (TTM)5.93%
Revenue growth 3Y-0.35%
Revenue growth 5Y5.94%
Sales Q2Q%9.79%
Revenue Next Year4.33%
Revenue Next 2Y4.14%
Revenue Next 3Y3.69%
Revenue Next 5YN/A
EBIT growth 1Y7.6%
EBIT growth 3Y-2.66%
EBIT growth 5Y17.66%
EBIT Next Year26.88%
EBIT Next 3Y10.79%
EBIT Next 5YN/A
FCF growth 1Y21.86%
FCF growth 3Y-11.02%
FCF growth 5Y-3.66%
OCF growth 1Y14.38%
OCF growth 3Y-8.91%
OCF growth 5Y-1.1%