ZILLOW GROUP INC - A (ZG) Stock Fundamental Analysis
USA - NASDAQ:ZG - US98954M1018 - Common Stock
71.87 USD
+1.05 (+1.48%)
71.87 USD
0 (0%)
ZG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 63 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.
ZG had a positive operating cash flow in the past year.
ZG had negative earnings in each of the past 5 years.
ZG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ZG's Return On Assets of -0.56% is in line compared to the rest of the industry. ZG outperforms 52.38% of its industry peers.
ZG has a Return On Equity of -0.64%. This is comparable to the rest of the industry: ZG outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -0.64% | ||
| 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 (74.87%) is better than 90.48% 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 | 74.87% |
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.
Compared to 5 years ago, ZG has more shares outstanding
ZG has a better debt/assets ratio than last year.
2.2 Solvency
ZG has an Altman-Z score of 14.83. This indicates that ZG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.83, ZG belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
ZG has a debt to FCF ratio of 1.83. This is a very positive value and a sign of high solvency as it would only need 1.83 years to pay back of all of its debts.
ZG has a Debt to FCF ratio of 1.83. This is amongst the best in the industry. ZG outperforms 87.30% 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 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 14.83 |
ROIC/WACCN/A
WACC8.38%
2.3 Liquidity
ZG has a Current Ratio of 3.63. This indicates that ZG is financially healthy and has no problem in meeting its short term obligations.
ZG has a better Current ratio (3.63) than 84.13% of its industry peers.
A Quick Ratio of 3.63 indicates that ZG has no problem at all paying its short term obligations.
ZG has a Quick ratio of 3.63. This is amongst the best in the industry. ZG outperforms 87.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.63 | ||
| Quick Ratio | 3.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.92% over the past year.
ZG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.17%.
ZG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.00% yearly.
EPS 1Y (TTM)16.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%25.71%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y-35.01%
Revenue growth 5Y-4%
Sales Q2Q%16.35%
3.2 Future
The Earnings Per Share is expected to grow by 30.58% on average over the next years. This is a very strong growth
ZG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.16% yearly.
EPS Next Y22.85%
EPS Next 2Y27.79%
EPS Next 3Y29.97%
EPS Next 5Y30.58%
Revenue Next Year15.76%
Revenue Next 2Y14.95%
Revenue Next 3Y14.6%
Revenue Next 5Y14.16%
3.3 Evolution
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
A Price/Earnings ratio of 47.28 indicates a quite expensive valuation of ZG.
Based on the Price/Earnings ratio, ZG is valued a bit cheaper than the industry average as 69.84% of the companies are valued more expensively.
ZG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.35.
The Price/Forward Earnings ratio is 32.12, which means the current valuation is very expensive for ZG.
77.78% of the companies in the same industry are more expensive than ZG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ZG to the average of the S&P500 Index (33.72), we can say ZG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.28 | ||
| Fwd PE | 32.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZG.
ZG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZG is cheaper than 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 116.86 | ||
| EV/EBITDA | 88.17 |
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 29.97% in the coming years.
PEG (NY)2.07
PEG (5Y)N/A
EPS Next 2Y27.79%
EPS Next 3Y29.97%
5. Dividend
5.1 Amount
No dividends for ZG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.87
+1.05 (+1.48%)
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-1.75%
Ins Owners6.45%
Ins Owner ChangeN/A
Market Cap17.41B
Revenue(TTM)2.48B
Net Income(TTM)-32.00M
Analysts74.19
Price Target87.95 (22.37%)
Short Float %0.73%
Short Ratio2.05
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)-3.54%
Min EPS beat(2)-7.26%
Max EPS beat(2)0.18%
EPS beat(4)2
Avg EPS beat(4)-1.47%
Min EPS beat(4)-7.26%
Max EPS beat(4)8.47%
EPS beat(8)6
Avg EPS beat(8)15.83%
EPS beat(12)10
Avg EPS beat(12)58.09%
EPS beat(16)14
Avg EPS beat(16)70.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)-0.3%
Revenue beat(8)4
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)2.19%
Revenue beat(16)10
Avg Revenue beat(16)-4.77%
PT rev (1m)0.34%
PT rev (3m)9.77%
EPS NQ rev (1m)3.62%
EPS NQ rev (3m)2.36%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-1.87%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.28 | ||
| Fwd PE | 32.12 | ||
| P/S | 7.01 | ||
| P/FCF | 116.86 | ||
| P/OCF | 41.66 | ||
| P/B | 3.49 | ||
| P/tB | 9.18 | ||
| EV/EBITDA | 88.17 |
EPS(TTM)1.52
EY2.11%
EPS(NY)2.24
Fwd EY3.11%
FCF(TTM)0.62
FCFY0.86%
OCF(TTM)1.73
OCFY2.4%
SpS10.25
BVpS20.61
TBVpS7.83
PEG (NY)2.07
PEG (5Y)N/A
Graham Number26.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.56% | ||
| ROE | -0.64% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 74.87% | ||
| FCFM | 6% |
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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.83 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 102.28% | ||
| Cap/Sales | 10.83% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 241.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.63 | ||
| Quick Ratio | 3.63 | ||
| Altman-Z | 14.83 |
F-Score7
WACC8.38%
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)16.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%25.71%
EPS Next Y22.85%
EPS Next 2Y27.79%
EPS Next 3Y29.97%
EPS Next 5Y30.58%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y-35.01%
Revenue growth 5Y-4%
Sales Q2Q%16.35%
Revenue Next Year15.76%
Revenue Next 2Y14.95%
Revenue Next 3Y14.6%
Revenue Next 5Y14.16%
EBIT growth 1Y57.94%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year428.57%
EBIT Next 3Y95.63%
EBIT Next 5Y58.6%
FCF growth 1Y-21.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.75%
OCF growth 3YN/A
OCF growth 5YN/A
ZILLOW GROUP INC - A / ZG FAQ
What is the fundamental rating for ZG stock?
ChartMill assigns a fundamental rating of 5 / 10 to ZG.
Can you provide the valuation status for ZILLOW GROUP INC - A?
ChartMill assigns a valuation rating of 3 / 10 to ZILLOW GROUP INC - A (ZG). This can be considered as Overvalued.
Can you provide the profitability details for ZILLOW GROUP INC - A?
ZILLOW GROUP INC - A (ZG) has a profitability rating of 3 / 10.
What is the valuation of ZILLOW GROUP INC - A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ZILLOW GROUP INC - A (ZG) is 47.28 and the Price/Book (PB) ratio is 3.49.