When you look at NASDAQ:ZD, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Nov 8, 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.

Valuation Insights: NASDAQ:ZD

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:ZD has achieved a 9 out of 10:

The Price/Earnings ratio is 7.80, which indicates a rather cheap valuation of ZD.
Compared to the rest of the industry, the Price/Earnings ratio of ZD indicates a rather cheap valuation: ZD is cheaper than 88.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.94, ZD is valued rather cheaply.
A Price/Forward Earnings ratio of 6.54 indicates a rather cheap valuation of ZD.
Based on the Price/Forward Earnings ratio, ZD is valued cheaply inside the industry as 94.37% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.03. ZD is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZD indicates a rather cheap valuation: ZD is cheaper than 88.73% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZD indicates a rather cheap valuation: ZD is cheaper than 84.51% of the companies listed in the same industry.
ZD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ZD may justify a higher PE ratio.

A Closer Look at Profitability for NASDAQ:ZD

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ZD, the assigned 6 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 2.18%, ZD is in the better half of the industry, outperforming 69.01% of the companies in the same industry.
With a decent Return On Equity value of 4.28%, ZD is doing good in the industry, outperforming 73.24% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.86%, ZD is doing good in the industry, outperforming 69.01% of the companies in the same industry.
ZD has a better Profit Margin (5.85%) than 77.46% of its industry peers.
ZD has a better Operating Margin (13.82%) than 81.69% of its industry peers.
ZD's Gross Margin of 85.08% is fine compared to the rest of the industry. ZD outperforms 78.87% of its industry peers.

Assessing Health for NASDAQ:ZD

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:ZD scores a 5 out of 10:

ZD has a Altman-Z score of 2.05. This is in the better half of the industry: ZD outperforms 60.56% of its industry peers.
ZD has a better Debt to FCF ratio (5.45) than 63.38% of its industry peers.

Understanding NASDAQ:ZD's Growth Score

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:ZD was assigned a score of 4 for growth:

ZD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.61% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of ZD contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.