ZILLOW GROUP INC - A (ZG) Stock Fundamental Analysis
NASDAQ:ZG - Nasdaq - US98954M1018 - Common Stock - Currency: USD
Taking everything into account, ZG scores 5 out of 10 in our fundamental rating. ZG was compared to 64 industry peers in the Real Estate Management & Development industry. No worries on liquidiy or solvency for ZG as it has an excellent financial health rating, but there are worries on the profitability. 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.
Of the past 5 years ZG 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -1.14%, ZG perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
With a Return On Equity value of -1.31%, ZG perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
| 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.
Compared to 1 year ago, ZG has more shares outstanding
The number of shares outstanding for ZG has been increased compared to 5 years ago.
ZG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 17.73 indicates that ZG is not in any danger for bankruptcy at the moment.
ZG has a better Altman-Z score (17.73) than 92.19% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.07, ZG belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that ZG is not too dependend on debt financing.
The Debt to Equity ratio of ZG (0.05) is better than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 17.73 |
ROIC/WACCN/A
WACC8.58%
2.3 Liquidity
A Current Ratio of 3.34 indicates that ZG has no problem at all paying its short term obligations.
ZG has a Current ratio of 3.34. This is in the better half of the industry: ZG outperforms 75.00% of its industry peers.
ZG has a Quick Ratio of 3.34. This indicates that ZG is financially healthy and has no problem in meeting its short term obligations.
ZG has a better Quick ratio (3.34) than 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.34 | ||
| Quick Ratio | 3.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.72% over the past year.
ZG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.31%.
Measured over the past years, ZG shows a decrease in Revenue. The Revenue has been decreasing by -4.00% on average per year.
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 24.42% yearly.
Based on estimates for the next years, ZG will show a quite strong growth in Revenue. The Revenue will grow by 14.23% on average per year.
EPS Next Y25.19%
EPS Next 2Y30.29%
EPS Next 3Y34.18%
EPS Next 5Y24.42%
Revenue Next Year14.75%
Revenue Next 2Y14.7%
Revenue Next 3Y14.91%
Revenue Next 5Y14.23%
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
With a Price/Earnings ratio of 56.83, ZG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ZG is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.11, ZG is valued quite expensively.
The Price/Forward Earnings ratio is 34.95, 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 75.00% 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 35.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.83 | ||
| Fwd PE | 34.95 |
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 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.27 | ||
| EV/EBITDA | 135.56 |
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.
ZG's earnings are expected to grow with 34.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.26
PEG (5Y)N/A
EPS Next 2Y30.29%
EPS Next 3Y34.18%
5. Dividend
5.1 Amount
ZG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.27
+4.24 (+5.5%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners95.52%
Inst Owner Change-0.41%
Ins Owners6.74%
Ins Owner ChangeN/A
Market Cap19.62B
Analysts72.67
Price Target80.12 (-1.42%)
Short Float %0.81%
Short Ratio2.75
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)0.59%
PT rev (3m)-6.75%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-9.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.25%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.83 | ||
| Fwd PE | 34.95 | ||
| P/S | 8.22 | ||
| P/FCF | 91.27 | ||
| P/OCF | 40.54 | ||
| P/B | 4.13 | ||
| P/tB | 11.98 | ||
| EV/EBITDA | 135.56 |
EPS(TTM)1.43
EY1.76%
EPS(NY)2.33
Fwd EY2.86%
FCF(TTM)0.89
FCFY1.1%
OCF(TTM)2
OCFY2.47%
SpS9.89
BVpS19.66
TBVpS6.78
PEG (NY)2.26
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 | 17.73 |
F-Score7
WACC8.58%
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 Y25.19%
EPS Next 2Y30.29%
EPS Next 3Y34.18%
EPS Next 5Y24.42%
Revenue 1Y (TTM)15.31%
Revenue growth 3Y-35.01%
Revenue growth 5Y-4%
Sales Q2Q%14.51%
Revenue Next Year14.75%
Revenue Next 2Y14.7%
Revenue Next 3Y14.91%
Revenue Next 5Y14.23%
EBIT growth 1Y39.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year430.12%
EBIT Next 3Y96.41%
EBIT Next 5Y59.16%
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