ZILLOW GROUP INC - A (ZG) Stock Fundamental Analysis
USA - NASDAQ:ZG - US98954M1018 - Common Stock
74.39 USD
+1.93 (+2.66%)
74.39 USD
0 (0%)
ZG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Real Estate Management & Development industry. While ZG has a great health rating, there are worries on its profitability. While showing a medium growth rate, ZG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ZG had positive earnings in the past year.
In the past year ZG had a positive cash flow from operations.
ZG had negative earnings in each of the past 5 years.
Of the past 5 years ZG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ZG (-1.14%) is comparable to the rest of the industry.
ZG's Return On Equity of -1.31% is in line compared to the rest of the industry. ZG outperforms 54.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.14% | ||
| ROE | -1.31% | ||
| ROIC | N/A |
ROA(3y)-1.95%
ROA(5y)-2.59%
ROE(3y)-2.68%
ROE(5y)-4.27%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of ZG (75.75%) is better than 90.63% of its industry peers.
ZG's Gross Margin has improved in the last couple of years.
ZG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 75.75% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y42.3%
GM growth 5Y9.85%
2. Health
2.1 Basic Checks
ZG does not have a ROIC to compare to the WACC, probably because it is not profitable.
ZG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ZG has been increased compared to 5 years ago.
Compared to 1 year ago, ZG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 16.30 indicates that ZG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 16.30, ZG belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
The Debt to FCF ratio of ZG is 1.07, which is an excellent value as it means it would take ZG, only 1.07 years of fcf income to pay off all of its debts.
ZG has a better Debt to FCF ratio (1.07) than 85.94% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that ZG is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.05, ZG belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 16.3 |
ROIC/WACCN/A
WACC8.85%
2.3 Liquidity
ZG has a Current Ratio of 3.34. This indicates that ZG is financially healthy and has no problem in meeting its short term obligations.
ZG's Current ratio of 3.34 is fine compared to the rest of the industry. ZG outperforms 76.56% of its industry peers.
A Quick Ratio of 3.34 indicates that ZG has no problem at all paying its short term obligations.
The Quick ratio of ZG (3.34) is better than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.34 | ||
| Quick Ratio | 3.34 |
3. Growth
3.1 Past
ZG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.72%, which is quite good.
ZG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.31%.
ZG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.00% yearly.
EPS 1Y (TTM)11.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2.56%
Revenue 1Y (TTM)15.31%
Revenue growth 3Y-35.01%
Revenue growth 5Y-4%
Sales Q2Q%14.51%
3.2 Future
ZG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.71% yearly.
ZG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.05% yearly.
EPS Next Y21.5%
EPS Next 2Y29.21%
EPS Next 3Y32.55%
EPS Next 5Y33.71%
Revenue Next Year15.32%
Revenue Next 2Y14.95%
Revenue Next 3Y14.9%
Revenue Next 5Y15.05%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 52.02 indicates a quite expensive valuation of ZG.
ZG's Price/Earnings ratio is a bit cheaper when compared to the industry. ZG is cheaper than 65.63% of the companies in the same industry.
ZG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.86.
With a Price/Forward Earnings ratio of 32.52, ZG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ZG is valued a bit cheaper than 76.56% of the companies in the same industry.
ZG is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.02 | ||
| Fwd PE | 32.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZG is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ZG is valued a bit cheaper than 60.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.83 | ||
| EV/EBITDA | 123.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZG does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as ZG's earnings are expected to grow with 32.55% in the coming years.
PEG (NY)2.42
PEG (5Y)N/A
EPS Next 2Y29.21%
EPS Next 3Y32.55%
5. Dividend
5.1 Amount
ZG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
74.39
+1.93 (+2.66%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners95.68%
Inst Owner Change-3.18%
Ins Owners6.45%
Ins Owner ChangeN/A
Market Cap18.02B
Analysts72.67
Price Target87.66 (17.84%)
Short Float %0.63%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.6%
Min EPS beat(2)-7.26%
Max EPS beat(2)8.47%
EPS beat(4)2
Avg EPS beat(4)3.07%
Min EPS beat(4)-7.26%
Max EPS beat(4)18.32%
EPS beat(8)6
Avg EPS beat(8)22.01%
EPS beat(12)10
Avg EPS beat(12)78.63%
EPS beat(16)13
Avg EPS beat(16)27.51%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.78%
Max Revenue beat(2)-0.3%
Revenue beat(4)1
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-0.78%
Max Revenue beat(4)2.69%
Revenue beat(8)5
Avg Revenue beat(8)1.46%
Revenue beat(12)9
Avg Revenue beat(12)2.61%
Revenue beat(16)10
Avg Revenue beat(16)-10.95%
PT rev (1m)1.36%
PT rev (3m)10.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.42%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-2.99%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.02 | ||
| Fwd PE | 32.52 | ||
| P/S | 7.55 | ||
| P/FCF | 83.83 | ||
| P/OCF | 37.24 | ||
| P/B | 3.8 | ||
| P/tB | 11 | ||
| EV/EBITDA | 123.44 |
EPS(TTM)1.43
EY1.92%
EPS(NY)2.29
Fwd EY3.07%
FCF(TTM)0.89
FCFY1.19%
OCF(TTM)2
OCFY2.69%
SpS9.86
BVpS19.59
TBVpS6.76
PEG (NY)2.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.14% | ||
| ROE | -1.31% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 75.75% | ||
| FCFM | 9% |
ROA(3y)-1.95%
ROA(5y)-2.59%
ROE(3y)-2.68%
ROE(5y)-4.27%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y42.3%
GM growth 5Y9.85%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 101.51% | ||
| Cap/Sales | 11.26% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 366.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.34 | ||
| Quick Ratio | 3.34 | ||
| Altman-Z | 16.3 |
F-Score7
WACC8.85%
ROIC/WACCN/A
Cap/Depr(3y)73.5%
Cap/Depr(5y)73.95%
Cap/Sales(3y)7.76%
Cap/Sales(5y)5.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%2.56%
EPS Next Y21.5%
EPS Next 2Y29.21%
EPS Next 3Y32.55%
EPS Next 5Y33.71%
Revenue 1Y (TTM)15.31%
Revenue growth 3Y-35.01%
Revenue growth 5Y-4%
Sales Q2Q%14.51%
Revenue Next Year15.32%
Revenue Next 2Y14.95%
Revenue Next 3Y14.9%
Revenue Next 5Y15.05%
EBIT growth 1Y39.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year428.57%
EBIT Next 3Y95.63%
EBIT Next 5Y60.65%
FCF growth 1Y-25.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.5%
OCF growth 3YN/A
OCF growth 5YN/A