ZILLOW GROUP INC - A (ZG)
US98954M1018 - Common Stock
Overall ZG gets a fundamental rating of 4 out of 10. We evaluated ZG against 65 industry peers in the Real Estate Management & Development industry. ZG has a great financial health rating, but its profitability evaluates not so good. ZG is not valued too expensively and it also shows a decent growth rate.
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.
The reported operating cash flow has been mixed in the past 5 years: ZG reported negative operating cash flow in multiple years.
1.2 Ratios
ZG has a Return On Assets of -2.33%. This is comparable to the rest of the industry: ZG outperforms 53.13% of its industry peers.
ZG has a Return On Equity of -3.41%. This is comparable to the rest of the industry: ZG outperforms 57.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.33% | ||
| ROE | -3.41% | ||
| ROIC | N/A |
ROA(3y)-2.95%
ROA(5y)-3.2%
ROE(3y)-5.21%
ROE(5y)-5.59%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Gross Margin value of 77.46%, ZG belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
ZG's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for ZG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.46% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.23%
GM growth 5Y-2.4%
2. Health
2.1 Basic Checks
ZG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ZG has less shares outstanding
Compared to 5 years ago, ZG has more shares outstanding
Compared to 1 year ago, ZG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.06 indicates that ZG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.06, ZG is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Debt to FCF ratio of ZG is 10.19, which is on the high side as it means it would take ZG, 10.19 years of fcf income to pay off all of its debts.
ZG's Debt to FCF ratio of 10.19 is fine compared to the rest of the industry. ZG outperforms 73.44% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that ZG is not too dependend on debt financing.
ZG has a better Debt to Equity ratio (0.24) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 10.19 | ||
| Altman-Z | 3.06 |
ROIC/WACCN/A
WACC8.08%
2.3 Liquidity
ZG has a Current Ratio of 3.32. This indicates that ZG is financially healthy and has no problem in meeting its short term obligations.
ZG's Current ratio of 3.32 is fine compared to the rest of the industry. ZG outperforms 68.75% of its industry peers.
A Quick Ratio of 3.32 indicates that ZG has no problem at all paying its short term obligations.
ZG has a better Quick ratio (3.32) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 |
3. Growth
3.1 Past
The earnings per share for ZG have decreased by -9.22% in the last year.
Measured over the past years, ZG shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.63% on average per year.
ZG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.03%.
ZG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.84% yearly.
EPS 1Y (TTM)-9.22%
EPS 3Y52.23%
EPS 5Y26.63%
EPS growth Q2Q2.86%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y-16.49%
Revenue growth 5Y7.84%
Revenue growth Q2Q12.79%
3.2 Future
Based on estimates for the next years, ZG will show a very strong growth in Earnings Per Share. The EPS will grow by 25.11% on average per year.
The Revenue is expected to grow by 11.83% on average over the next years. This is quite good.
EPS Next Y20.49%
EPS Next 2Y29.26%
EPS Next 3Y32.54%
EPS Next 5Y25.11%
Revenue Next Year13.28%
Revenue Next 2Y13.64%
Revenue Next 3Y13.75%
Revenue Next 5Y11.83%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.87, the valuation of ZG can be described as expensive.
70.31% of the companies in the same industry are more expensive than ZG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ZG to the average of the S&P500 Index (28.60), we can say ZG is valued inline with the index average.
A Price/Forward Earnings ratio of 20.43 indicates a rather expensive valuation of ZG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZG indicates a somewhat cheap valuation: ZG is cheaper than 78.13% of the companies listed in the same industry.
ZG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.87 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ZG is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.23 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ZG's earnings are expected to grow with 32.54% in the coming years.
PEG (NY)1.65
PEG (5Y)1.27
EPS Next 2Y29.26%
EPS Next 3Y32.54%
5. Dividend
5.1 Amount
ZG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZILLOW GROUP INC - A
NASDAQ:ZG (5/17/2024, 7:00:03 PM)
After market: 43.35 0 (0%)43.35
-0.56 (-1.28%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.87 | ||
| Fwd PE | 20.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.65
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.33% | ||
| ROE | -3.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-9.22%
EPS 3Y52.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.03%
Revenue growth 3Y-16.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y