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ZILLOW GROUP INC - A (ZG) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:ZG - US98954M1018 - Common Stock

67.335 USD
-0.61 (-0.9%)
Last: 1/23/2026, 8:00:02 PM
67.335 USD
0 (0%)
After Hours: 1/23/2026, 8:00:02 PM
Fundamental Rating

5

Taking everything into account, ZG scores 5 out of 10 in our fundamental rating. ZG was compared to 62 industry peers in the Real Estate Management & Development industry. While ZG has a great health rating, there are worries on its profitability. ZG is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year ZG was profitable.
  • 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.
ZG Yearly Net Income VS EBIT VS OCF VS FCFZG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B

1.2 Ratios

  • ZG's Return On Assets of -0.56% is in line compared to the rest of the industry. ZG outperforms 50.00% of its industry peers.
  • ZG has a Return On Equity (-0.64%) which is comparable to the rest of the industry.
Industry RankSector 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
ZG Yearly ROA, ROE, ROICZG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -2 -4 -6 -8

1.3 Margins

  • Looking at the Gross Margin, with a value of 74.87%, ZG belongs to the top of the industry, outperforming 90.32% 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 RankSector 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%
ZG Yearly Profit, Operating, Gross MarginsZG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

8

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.
  • The number of shares outstanding for ZG has been increased compared to 5 years ago.
  • Compared to 1 year ago, ZG has an improved debt to assets ratio.
ZG Yearly Shares OutstandingZG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
ZG Yearly Total Debt VS Total AssetsZG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

  • ZG has an Altman-Z score of 14.23. This indicates that ZG is financially healthy and has little risk of bankruptcy at the moment.
  • ZG has a better Altman-Z score (14.23) than 88.71% of its industry peers.
  • The Debt to FCF ratio of ZG is 1.83, which is an excellent value as it means it would take ZG, only 1.83 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.83, ZG belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
  • ZG has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.05, ZG is doing good in the industry, outperforming 79.03% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 1.83
Altman-Z 14.23
ROIC/WACCN/A
WACC8.46%
ZG Yearly LT Debt VS Equity VS FCFZG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B

2.3 Liquidity

  • A Current Ratio of 3.63 indicates that ZG has no problem at all paying its short term obligations.
  • The Current ratio of ZG (3.63) is better than 80.65% of its industry peers.
  • ZG has a Quick Ratio of 3.63. This indicates that ZG is financially healthy and has no problem in meeting its short term obligations.
  • ZG's Quick ratio of 3.63 is amongst the best of the industry. ZG outperforms 83.87% of its industry peers.
Industry RankSector Rank
Current Ratio 3.63
Quick Ratio 3.63
ZG Yearly Current Assets VS Current LiabilitesZG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

5

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

  • ZG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.58% yearly.
  • Based on estimates for the next years, ZG will show a quite strong growth in Revenue. The Revenue will grow by 14.16% on average per year.
EPS Next Y23.19%
EPS Next 2Y28.27%
EPS Next 3Y30.47%
EPS Next 5Y30.58%
Revenue Next Year15.85%
Revenue Next 2Y15.16%
Revenue Next 3Y14.6%
Revenue Next 5Y14.16%

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.
ZG Yearly Revenue VS EstimatesZG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2B 4B 6B 8B
ZG Yearly EPS VS EstimatesZG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 2 4

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 44.30, which means the current valuation is very expensive for ZG.
  • Based on the Price/Earnings ratio, ZG is valued a bit cheaper than the industry average as 70.97% 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 27.21.
  • With a Price/Forward Earnings ratio of 29.87, ZG can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ZG indicates a somewhat cheap valuation: ZG is cheaper than 77.42% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ZG is valued a bit more expensive.
Industry RankSector Rank
PE 44.3
Fwd PE 29.87
ZG Price Earnings VS Forward Price EarningsZG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZG is on the same level as its industry peers.
  • ZG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZG is cheaper than 64.52% of the companies in the same industry.
Industry RankSector Rank
P/FCF 109.39
EV/EBITDA 84.06
ZG Per share dataZG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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.
  • A more expensive valuation may be justified as ZG's earnings are expected to grow with 30.47% in the coming years.
PEG (NY)1.91
PEG (5Y)N/A
EPS Next 2Y28.27%
EPS Next 3Y30.47%

0

5. Dividend

5.1 Amount

  • ZG does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

ZILLOW GROUP INC - A / ZG FAQ

What is the fundamental rating for ZG stock?

ChartMill assigns a fundamental rating of 5 / 10 to ZG.


What is the valuation status of ZILLOW GROUP INC - A (ZG) stock?

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 financial health of ZILLOW GROUP INC - A (ZG) stock?

The financial health rating of ZILLOW GROUP INC - A (ZG) is 8 / 10.


Can you provide the expected EPS growth for ZG stock?

The Earnings per Share (EPS) of ZILLOW GROUP INC - A (ZG) is expected to grow by 23.19% in the next year.