In a market where value is scarce, NASDAQ:ZD offers a refreshing opportunity with its solid fundamentals.

Last update: Sep 23, 2024

Discover ZIFF DAVIS INC (NASDAQ:ZD)—an undervalued stock our stock screener has picked out. NASDAQ:ZD demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

ChartMill's Evaluation of Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:ZD has received a 8 out of 10:

ZD is valuated reasonably with a Price/Earnings ratio of 8.12.
Compared to the rest of the industry, the Price/Earnings ratio of ZD indicates a rather cheap valuation: ZD is cheaper than 88.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.59, ZD is valued rather cheaply.
The Price/Forward Earnings ratio is 6.81, which indicates a rather cheap valuation of ZD.
Based on the Price/Forward Earnings ratio, ZD is valued cheaper than 91.30% of the companies in the same industry.
ZD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.11.
Based on the Enterprise Value to EBITDA ratio, ZD is valued cheaper than 89.86% of the companies in the same industry.
82.61% of the companies in the same industry are more expensive than ZD, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ZD has a very decent profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ZD scores a 6 out of 10:

ZD has a better Return On Assets (2.18%) than 71.01% of its industry peers.
ZD has a better Return On Equity (4.28%) than 72.46% of its industry peers.
ZD has a better Return On Invested Capital (3.86%) than 71.01% of its industry peers.
Looking at the Profit Margin, with a value of 5.85%, ZD is in the better half of the industry, outperforming 76.81% of the companies in the same industry.
ZD has a Operating Margin of 13.82%. This is amongst the best in the industry. ZD outperforms 81.16% of its industry peers.
Looking at the Gross Margin, with a value of 85.08%, ZD is in the better half of the industry, outperforming 78.26% of the companies in the same industry.

ChartMill's Evaluation of Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ZD, the assigned 5 reflects its health status:

ZD has a better Altman-Z score (2.06) than 62.32% of its industry peers.
ZD has a Debt to FCF ratio of 5.45. This is in the better half of the industry: ZD outperforms 65.22% of its industry peers.

Assessing Growth Metrics for NASDAQ:ZD

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:ZD has achieved a 4 out of 10:

The Earnings Per Share is expected to grow by 10.61% on average over the next years. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ZD

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.