ZILLOW GROUP INC - A (ZG) Stock Fundamental Analysis
NASDAQ:ZG - Nasdaq - US98954M1018 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ZG. ZG was compared to 65 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ZG was profitable.
In the past year ZG had a positive cash flow from operations.
In the past 5 years ZG always reported negative net income.
ZG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of ZG (-1.92%) is comparable to the rest of the industry.
With a Return On Equity value of -2.31%, ZG perfoms like the industry average, outperforming 56.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.92% | ||
| ROE | -2.31% | ||
| 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
ZG has a better Gross Margin (76.43%) than 90.77% of its industry peers.
In the last couple of years the Gross Margin of ZG has grown nicely.
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 | 76.43% |
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.
ZG has a better debt/assets ratio than last year.
2.2 Solvency
ZG has an Altman-Z score of 10.02. This indicates that ZG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ZG (10.02) is better than 90.77% of its industry peers.
ZG has a debt to FCF ratio of 2.19. This is a good value and a sign of high solvency as ZG would need 2.19 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.19, ZG belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that ZG is not too dependend on debt financing.
The Debt to Equity ratio of ZG (0.03) is better than 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 2.19 | ||
| Altman-Z | 10.02 |
ROIC/WACCN/A
WACC8.57%
2.3 Liquidity
A Current Ratio of 2.81 indicates that ZG has no problem at all paying its short term obligations.
The Current ratio of ZG (2.81) is better than 69.23% of its industry peers.
A Quick Ratio of 2.81 indicates that ZG has no problem at all paying its short term obligations.
The Quick ratio of ZG (2.81) is better than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.87% over the past year.
Looking at the last year, ZG shows a quite strong growth in Revenue. The Revenue has grown by 14.96% in the last year.
ZG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.00% yearly.
EPS 1Y (TTM)7.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%35%
Revenue 1Y (TTM)14.96%
Revenue growth 3Y-35.01%
Revenue growth 5Y-4%
Sales Q2Q%16.88%
3.2 Future
The Earnings Per Share is expected to grow by 32.91% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.76% on average over the next years. This is quite good.
EPS Next Y32.13%
EPS Next 2Y33.25%
EPS Next 3Y34.84%
EPS Next 5Y32.91%
Revenue Next Year14.58%
Revenue Next 2Y14.7%
Revenue Next 3Y14.71%
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
The Price/Earnings ratio is 48.22, which means the current valuation is very expensive for ZG.
ZG's Price/Earnings ratio is a bit cheaper when compared to the industry. ZG is cheaper than 67.69% of the companies in the same industry.
ZG is valuated expensively when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 36.49, the valuation of ZG can be described as expensive.
Based on the Price/Forward Earnings ratio, ZG is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.42. ZG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.22 | ||
| Fwd PE | 36.49 |
4.2 Price Multiples
ZG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ZG is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.03 | ||
| EV/EBITDA | 232.45 |
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 34.84% in the coming years.
PEG (NY)1.5
PEG (5Y)N/A
EPS Next 2Y33.25%
EPS Next 3Y34.84%
5. Dividend
5.1 Amount
ZG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
66.06
-0.92 (-1.37%)
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 Change0.21%
Ins Owners5.36%
Ins Owner ChangeN/A
Market Cap15.94B
Analysts74.84
Price Target88.45 (33.89%)
Short Float %0.74%
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)5.54%
Min EPS beat(2)-7.25%
Max EPS beat(2)18.32%
EPS beat(4)3
Avg EPS beat(4)14.23%
Min EPS beat(4)-7.25%
Max EPS beat(4)42.57%
EPS beat(8)7
Avg EPS beat(8)60.76%
EPS beat(12)11
Avg EPS beat(12)88.46%
EPS beat(16)14
Avg EPS beat(16)36.8%
Revenue beat(2)1
Avg Revenue beat(2)1.15%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)2.69%
Revenue beat(4)3
Avg Revenue beat(4)2.15%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)4.31%
Revenue beat(8)7
Avg Revenue beat(8)3.22%
Revenue beat(12)9
Avg Revenue beat(12)-8.49%
Revenue beat(16)11
Avg Revenue beat(16)-17.43%
PT rev (1m)-0.3%
PT rev (3m)8.07%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-22.23%
EPS NY rev (1m)-1.44%
EPS NY rev (3m)-10.22%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.22 | ||
| Fwd PE | 36.49 | ||
| P/S | 7.13 | ||
| P/FCF | 62.03 | ||
| P/OCF | 37.25 | ||
| P/B | 3.29 | ||
| P/tB | 8.77 | ||
| EV/EBITDA | 232.45 |
EPS(TTM)1.37
EY2.07%
EPS(NY)1.81
Fwd EY2.74%
FCF(TTM)1.07
FCFY1.61%
OCF(TTM)1.77
OCFY2.68%
SpS9.27
BVpS20.09
TBVpS7.53
PEG (NY)1.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.92% | ||
| ROE | -2.31% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.43% | ||
| FCFM | 11.49% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 2.19 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 68.4% | ||
| Cap/Sales | 7.65% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 713.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.81 | ||
| Altman-Z | 10.02 |
F-Score6
WACC8.57%
ROIC/WACCN/A
Cap/Depr(3y)77.3%
Cap/Depr(5y)82.19%
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)7.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%35%
EPS Next Y32.13%
EPS Next 2Y33.25%
EPS Next 3Y34.84%
EPS Next 5Y32.91%
Revenue 1Y (TTM)14.96%
Revenue growth 3Y-35.01%
Revenue growth 5Y-4%
Sales Q2Q%16.88%
Revenue Next Year14.58%
Revenue Next 2Y14.7%
Revenue Next 3Y14.71%
Revenue Next 5Y13.76%
EBIT growth 1Y23.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year434.9%
EBIT Next 3Y97.67%
EBIT Next 5Y60%
FCF growth 1Y35.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.9%
OCF growth 3YN/A
OCF growth 5YN/A