ZIFF DAVIS INC (ZD) Stock Fundamental Analysis
NASDAQ:ZD - US48123V1026 - Common Stock
38.21 USD
+0.9 (+2.41%)
38.21 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ZD. ZD was compared to 70 industry peers in the Interactive Media & Services industry. ZD has an average financial health and profitability rating. ZD is cheap, but on the other hand it scores bad on growth. These ratings would make ZD suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ZD was profitable.
ZD had a positive operating cash flow in the past year.
ZD had positive earnings in each of the past 5 years.
ZD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZD has a Return On Assets (1.88%) which is in line with its industry peers.
With a decent Return On Equity value of 3.59%, ZD is doing good in the industry, outperforming 61.43% of the companies in the same industry.
The Return On Invested Capital of ZD (4.43%) is better than 72.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZD is significantly below the industry average of 12.61%.
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 Profit Margin value of 4.57%, ZD perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
ZD's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 14.03%, ZD is doing good in the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of ZD has grown nicely.
The Gross Margin of ZD (86.40%) is better than 87.14% 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.
Compared to 1 year ago, ZD has less shares outstanding
The number of shares outstanding for ZD has been reduced compared to 5 years ago.
Compared to 1 year ago, ZD has an improved debt to assets ratio.
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 comparable to the rest of the industry.
The Debt to FCF ratio of ZD is 3.71, which is a good value as it means it would take ZD, 3.71 years of fcf income to pay off all of its debts.
ZD's Debt to FCF ratio of 3.71 is fine compared to the rest of the industry. ZD outperforms 62.86% 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.
The Debt to Equity ratio of ZD (0.47) is worse than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.71 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.58
WACC7.66%
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.
The Current ratio of ZD (1.59) is worse than 64.29% of its industry peers.
A Quick Ratio of 1.59 indicates that ZD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.59, ZD is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.10% over the past year.
The Earnings Per Share has been decreasing by -1.19% on average over the past years.
ZD shows a small growth in Revenue. In the last year, the Revenue has grown by 5.93%.
The Revenue has been growing slightly by 5.94% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.46% on average over the next years.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y5.19%
EPS Next 2Y6.79%
EPS Next 3Y6.46%
EPS Next 5YN/A
Revenue Next Year4.33%
Revenue Next 2Y4.14%
Revenue Next 3Y3.75%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 5.79, which indicates a rather cheap valuation of ZD.
Based on the Price/Earnings ratio, ZD is valued cheaper than 92.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. ZD is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.02, the valuation of ZD can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZD indicates a rather cheap valuation: ZD is cheaper than 97.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, ZD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.79 | ||
| Fwd PE | 5.02 |
4.2 Price Multiples
ZD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZD is cheaper than 92.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ZD is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.72 | ||
| EV/EBITDA | 4.53 |
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)1.11
PEG (5Y)N/A
EPS Next 2Y6.79%
EPS Next 3Y6.46%
5. Dividend
5.1 Amount
ZD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.21
+0.9 (+2.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners108.3%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner Change10.65%
Market Cap1.57B
Analysts77.33
Price Target47.09 (23.24%)
Short Float %10.45%
Short Ratio6.83
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)-15.81%
EPS NQ rev (1m)3.23%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)0.53%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.79 | ||
| Fwd PE | 5.02 | ||
| P/S | 1.08 | ||
| P/FCF | 6.72 | ||
| P/OCF | 4.58 | ||
| P/B | 0.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.53 |
EPS(TTM)6.6
EY17.27%
EPS(NY)7.61
Fwd EY19.91%
FCF(TTM)5.69
FCFY14.88%
OCF(TTM)8.34
OCFY21.82%
SpS35.3
BVpS44.94
TBVpS-4.25
PEG (NY)1.11
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
WACC7.66%
ROIC/WACC0.58
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 Y5.19%
EPS Next 2Y6.79%
EPS Next 3Y6.46%
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 3Y3.75%
Revenue Next 5YN/A
EBIT growth 1Y7.6%
EBIT growth 3Y-2.66%
EBIT growth 5Y17.66%
EBIT Next Year26.07%
EBIT Next 3Y10.65%
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%