ZILLOW GROUP INC - A (ZG) Stock Fundamental Analysis
NASDAQ:ZG - Nasdaq - US98954M1018 - Common Stock - Currency: USD
Overall ZG gets a fundamental rating of 5 out of 10. We evaluated ZG against 65 industry peers in the Real Estate Management & Development industry. While ZG has a great health rating, there are worries on its profitability. ZG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ZG had positive earnings in the past year.
ZG had a positive operating cash flow in the past year.
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 (-1.41%) is comparable to the rest of the industry.
ZG has a Return On Equity (-1.70%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.41% | ||
| ROE | -1.7% | ||
| 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
With an excellent Gross Margin value of 76.44%, ZG belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
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 | 76.44% |
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.
The number of shares outstanding for ZG has been increased compared to 1 year ago.
ZG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ZG has been reduced compared to a year ago.
2.2 Solvency
ZG has an Altman-Z score of 9.96. This indicates that ZG is financially healthy and has little risk of bankruptcy at the moment.
ZG has a Altman-Z score of 9.96. This is amongst the best in the industry. ZG outperforms 87.69% of its industry peers.
The Debt to FCF ratio of ZG is 3.23, which is a good value as it means it would take ZG, 3.23 years of fcf income to pay off all of its debts.
ZG has a better Debt to FCF ratio (3.23) than 84.62% of its industry peers.
ZG has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
ZG's Debt to Equity ratio of 0.04 is amongst the best of the industry. ZG outperforms 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 9.96 |
ROIC/WACCN/A
WACC8.67%
2.3 Liquidity
A Current Ratio of 2.46 indicates that ZG has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.46, ZG is doing good in the industry, outperforming 69.23% of the companies in the same industry.
ZG has a Quick Ratio of 2.46. This indicates that ZG is financially healthy and has no problem in meeting its short term obligations.
ZG has a better Quick ratio (2.46) than 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
ZG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.94%, which is quite good.
ZG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.96%.
ZG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.00% yearly.
EPS 1Y (TTM)10.94%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%13.89%
Revenue 1Y (TTM)14.96%
Revenue growth 3Y-35.01%
Revenue growth 5Y-4%
Sales Q2Q%13.04%
3.2 Future
ZG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.91% yearly.
Based on estimates for the next years, ZG will show a quite strong growth in Revenue. The Revenue will grow by 13.76% on average per year.
EPS Next Y24.89%
EPS Next 2Y31.05%
EPS Next 3Y33.68%
EPS Next 5Y32.91%
Revenue Next Year14.88%
Revenue Next 2Y14.93%
Revenue Next 3Y14.97%
Revenue Next 5Y13.76%
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 47.89 indicates a quite expensive valuation of ZG.
70.77% of the companies in the same industry are more expensive than ZG, based on the Price/Earnings ratio.
ZG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.46.
The Price/Forward Earnings ratio is 28.90, which means the current valuation is very expensive for ZG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZG indicates a somewhat cheap valuation: ZG is cheaper than 75.38% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.30. ZG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.89 | ||
| Fwd PE | 28.9 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZG indicates a somewhat cheap valuation: ZG is cheaper than 64.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.72 | ||
| EV/EBITDA | 146.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as ZG's earnings are expected to grow with 33.68% in the coming years.
PEG (NY)1.92
PEG (5Y)N/A
EPS Next 2Y31.05%
EPS Next 3Y33.68%
5. Dividend
5.1 Amount
No dividends for ZG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68
+0.65 (+0.97%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners94.7%
Inst Owner Change-2.63%
Ins Owners5.36%
Ins Owner ChangeN/A
Market Cap16.42B
Analysts74.84
Price Target85.92 (26.35%)
Short Float %0.72%
Short Ratio2.31
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)0.61%
Min EPS beat(2)-7.25%
Max EPS beat(2)8.47%
EPS beat(4)3
Avg EPS beat(4)15.53%
Min EPS beat(4)-7.25%
Max EPS beat(4)42.57%
EPS beat(8)7
Avg EPS beat(8)37.17%
EPS beat(12)11
Avg EPS beat(12)82.15%
EPS beat(16)14
Avg EPS beat(16)32.86%
Revenue beat(2)0
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)-0.3%
Revenue beat(4)2
Avg Revenue beat(4)1.58%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)4.31%
Revenue beat(8)6
Avg Revenue beat(8)2.17%
Revenue beat(12)9
Avg Revenue beat(12)-1.47%
Revenue beat(16)10
Avg Revenue beat(16)-22.99%
PT rev (1m)-2.86%
PT rev (3m)4.98%
EPS NQ rev (1m)-14.28%
EPS NQ rev (3m)-15.02%
EPS NY rev (1m)-5.48%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.89 | ||
| Fwd PE | 28.9 | ||
| P/S | 7.12 | ||
| P/FCF | 89.72 | ||
| P/OCF | 36.32 | ||
| P/B | 3.45 | ||
| P/tB | 10.05 | ||
| EV/EBITDA | 146.82 |
EPS(TTM)1.42
EY2.09%
EPS(NY)2.35
Fwd EY3.46%
FCF(TTM)0.76
FCFY1.11%
OCF(TTM)1.87
OCFY2.75%
SpS9.55
BVpS19.69
TBVpS6.77
PEG (NY)1.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.41% | ||
| ROE | -1.7% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.44% | ||
| FCFM | 7.94% |
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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 104.26% | ||
| Cap/Sales | 11.67% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 461.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.46 | ||
| Altman-Z | 9.96 |
F-Score6
WACC8.67%
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)10.94%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%13.89%
EPS Next Y24.89%
EPS Next 2Y31.05%
EPS Next 3Y33.68%
EPS Next 5Y32.91%
Revenue 1Y (TTM)14.96%
Revenue growth 3Y-35.01%
Revenue growth 5Y-4%
Sales Q2Q%13.04%
Revenue Next Year14.88%
Revenue Next 2Y14.93%
Revenue Next 3Y14.97%
Revenue Next 5Y13.76%
EBIT growth 1Y35.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year430.25%
EBIT Next 3Y96.32%
EBIT Next 5Y60%
FCF growth 1Y-82.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.49%
OCF growth 3YN/A
OCF growth 5YN/A