ZIFF DAVIS INC (ZD) Stock Fundamental Analysis
NASDAQ:ZD - Nasdaq - US48123V1026 - Common Stock - Currency: USD
ZD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 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 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.
In the past year ZD had a positive cash flow from operations.
Each year in the past 5 years ZD has been profitable.
ZD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.18%, ZD is in the better half of the industry, outperforming 60.56% of the companies in the same industry.
ZD has a Return On Equity of 4.21%. This is in the better half of the industry: ZD outperforms 64.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.35%, ZD is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZD is significantly below the industry average of 12.03%.
The 3 year average ROIC (4.24%) for ZD is below the current ROIC(4.35%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 5.41%, ZD is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
ZD's Profit Margin has declined in the last couple of years.
ZD has a better Operating Margin (14.00%) than 78.87% of its industry peers.
In the last couple of years the Operating Margin of ZD has grown nicely.
With an excellent Gross Margin value of 85.84%, ZD belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
In the last couple of years the Gross Margin of ZD has remained more or less at the same level.
| 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
ZD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ZD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ZD has been reduced compared to 5 years ago.
ZD has a better debt/assets ratio than last year.
2.2 Solvency
ZD has an Altman-Z score of 1.76. This is a bad value and indicates that ZD is not financially healthy and even has some risk of bankruptcy.
ZD has a better Altman-Z score (1.76) than 60.56% of its industry peers.
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's Debt to FCF ratio of 3.74 is fine compared to the rest of the industry. ZD outperforms 63.38% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that ZD is not too dependend on debt financing.
ZD's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. ZD is outperformed by 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.64
WACC6.82%
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.
ZD's Current ratio of 1.52 is on the low side compared to the rest of the industry. ZD is outperformed by 66.20% 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.
ZD has a Quick ratio of 1.52. This is in the lower half of the industry: ZD underperforms 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.67% over the past year.
ZD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.19% yearly.
The Revenue has been growing slightly by 3.24% in the past year.
ZD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.94% yearly.
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.
Based on estimates for the next years, ZD will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y7.02%
EPS Next 2Y5.26%
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
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
A Price/Earnings ratio of 4.71 indicates a rather cheap valuation of ZD.
Based on the Price/Earnings ratio, ZD is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ZD to the average of the S&P500 Index (26.31), we can say ZD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.16, the valuation of ZD can be described as very cheap.
Based on the Price/Forward Earnings ratio, ZD is valued cheaply inside the industry as 97.18% of the companies are valued more expensively.
ZD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.71 | ||
| Fwd PE | 4.16 |
4.2 Price Multiples
ZD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZD is cheaper than 92.96% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZD indicates a rather cheap valuation: ZD is cheaper than 95.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.6 | ||
| EV/EBITDA | 4.3 |
4.3 Compensation for Growth
ZD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ZD may justify a higher PE ratio.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y5.26%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
ZD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.78
-1.58 (-4.88%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners111.56%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner Change11.25%
Market Cap1.30B
Analysts77.33
Price Target44.88 (45.81%)
Short Float %8.24%
Short Ratio5.49
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)-23.7%
PT rev (3m)-30.89%
EPS NQ rev (1m)-8.36%
EPS NQ rev (3m)-9.34%
EPS NY rev (1m)-1.5%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.71 | ||
| Fwd PE | 4.16 | ||
| P/S | 0.92 | ||
| P/FCF | 5.6 | ||
| P/OCF | 3.86 | ||
| P/B | 0.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.3 |
EPS(TTM)6.54
EY21.25%
EPS(NY)7.39
Fwd EY24.01%
FCF(TTM)5.49
FCFY17.85%
OCF(TTM)7.97
OCFY25.89%
SpS33.64
BVpS43.27
TBVpS-4.59
PEG (NY)0.67
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
WACC6.82%
ROIC/WACC0.64
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 Y7.02%
EPS Next 2Y5.26%
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%