ZIFF DAVIS INC (ZD) Stock Fundamental Analysis
NASDAQ:ZD - Nasdaq - US48123V1026 - Common Stock - Currency: USD
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. While ZD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ZD is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ZD had positive earnings in the past year.
ZD had a positive operating cash flow in the past year.
Each year in the past 5 years ZD has been profitable.
Each year in the past 5 years ZD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ZD (2.18%) is comparable to the rest of the industry.
ZD has a Return On Equity of 4.21%. This is in the better half of the industry: ZD outperforms 64.29% of its industry peers.
ZD has a better Return On Invested Capital (4.35%) than 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZD is significantly below the industry average of 12.03%.
The last Return On Invested Capital (4.35%) for ZD is above the 3 year average (4.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 4.21% | ||
| ROIC | 4.35% |
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 5.41%, ZD is doing good in the industry, outperforming 72.86% of the companies in the same industry.
In the last couple of years the Profit Margin of ZD has declined.
With a decent Operating Margin value of 14.00%, 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.
ZD has a Gross Margin of 85.84%. This is amongst the best in the industry. ZD outperforms 85.71% of its industry peers.
ZD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14% | ||
| PM (TTM) | 5.41% | ||
| GM | 85.84% |
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.
ZD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ZD has less shares outstanding
ZD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that ZD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ZD (1.76) is comparable to the rest of the industry.
The Debt to FCF ratio of ZD is 3.74, which is a good value as it means it would take ZD, 3.74 years of fcf income to pay off all of its debts.
ZD has a Debt to FCF ratio of 3.74. This is in the better half 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.
ZD has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: ZD underperforms 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.57
WACC7.67%
2.3 Liquidity
ZD has a Current Ratio of 1.52. 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 (1.52) is worse than 67.14% of its industry peers.
ZD has a Quick Ratio of 1.52. This is a normal value and indicates that ZD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ZD (1.52) is worse than 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
ZD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.67%.
The Earnings Per Share has been decreasing by -1.19% on average over the past years.
Looking at the last year, ZD shows a small growth in Revenue. The Revenue has grown by 3.24% 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)2.67%
EPS 3Y-9.84%
EPS 5Y-1.19%
EPS Q2Q%-10.24%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-0.35%
Revenue growth 5Y5.94%
Sales Q2Q%4.49%
3.2 Future
ZD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.23% yearly.
ZD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y4.64%
EPS Next 2Y4.81%
EPS Next 3Y5.23%
EPS Next 5YN/A
Revenue Next Year3.37%
Revenue Next 2Y3.51%
Revenue Next 3Y3.32%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.01 indicates a rather cheap valuation of ZD.
Compared to the rest of the industry, the Price/Earnings ratio of ZD indicates a rather cheap valuation: ZD is cheaper than 92.86% of the companies listed in the same industry.
ZD is valuated cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.47, which indicates a rather cheap valuation of ZD.
Based on the Price/Forward Earnings ratio, ZD is valued cheaply inside the industry as 98.57% of the companies are valued more expensively.
ZD is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.01 | ||
| Fwd PE | 4.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZD is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ZD is valued cheaper than 97.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.97 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
ZD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ZD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y4.81%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
ZD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.78
+0.35 (+1.08%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners107.24%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner Change10.65%
Market Cap1.38B
Analysts77.33
Price Target44.88 (36.91%)
Short Float %10.22%
Short Ratio7.27
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)0
Avg EPS beat(2)-8.06%
Min EPS beat(2)-11.23%
Max EPS beat(2)-4.88%
EPS beat(4)1
Avg EPS beat(4)-4.93%
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)-1.12%
EPS beat(16)9
Avg EPS beat(16)0.2%
Revenue beat(2)0
Avg Revenue beat(2)-3.58%
Min Revenue beat(2)-5.57%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-3.67%
Min Revenue beat(4)-6.4%
Max Revenue beat(4)-1.11%
Revenue beat(8)0
Avg Revenue beat(8)-3.31%
Revenue beat(12)1
Avg Revenue beat(12)-3.31%
Revenue beat(16)1
Avg Revenue beat(16)-5.09%
PT rev (1m)0%
PT rev (3m)-29.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.01 | ||
| Fwd PE | 4.47 | ||
| P/S | 0.97 | ||
| P/FCF | 5.97 | ||
| P/OCF | 4.11 | ||
| P/B | 0.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.31 |
EPS(TTM)6.54
EY19.95%
EPS(NY)7.33
Fwd EY22.35%
FCF(TTM)5.49
FCFY16.76%
OCF(TTM)7.97
OCFY24.31%
SpS33.64
BVpS43.27
TBVpS-4.59
PEG (NY)1.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 4.21% | ||
| ROCE | 7.05% | ||
| ROIC | 4.35% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 33.47% | ||
| OM | 14% | ||
| PM (TTM) | 5.41% | ||
| GM | 85.84% | ||
| FCFM | 16.33% |
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-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.74 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 47.48% | ||
| Cap/Sales | 7.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.33% | ||
| Profit Quality | 301.65% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.76 |
F-Score8
WACC7.67%
ROIC/WACC0.57
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)2.67%
EPS 3Y-9.84%
EPS 5Y-1.19%
EPS Q2Q%-10.24%
EPS Next Y4.64%
EPS Next 2Y4.81%
EPS Next 3Y5.23%
EPS Next 5YN/A
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-0.35%
Revenue growth 5Y5.94%
Sales Q2Q%4.49%
Revenue Next Year3.37%
Revenue Next 2Y3.51%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y-0.45%
EBIT growth 3Y-2.66%
EBIT growth 5Y17.66%
EBIT Next Year26.07%
EBIT Next 3Y10.65%
EBIT Next 5YN/A
FCF growth 1Y0.76%
FCF growth 3Y-11.02%
FCF growth 5Y-3.66%
OCF growth 1Y0.05%
OCF growth 3Y-8.91%
OCF growth 5Y-1.1%