ZILLOW GROUP INC - C (Z) Stock Fundamental Analysis
NASDAQ:Z - Nasdaq - US98954M2008 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to Z. Z was compared to 64 industry peers in the Real Estate Management & Development industry. Z has a great financial health rating, but its profitability evaluates not so good. Z has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
Z had positive earnings in the past year.
In the past year Z had a positive cash flow from operations.
In the past 5 years Z always reported negative net income.
Z had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Z has a Return On Assets (-1.92%) which is comparable to the rest of the industry.
Z has a Return On Equity (-2.31%) which is in line with its industry peers.
| 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
Looking at the Gross Margin, with a value of 76.43%, Z belongs to the top of the industry, outperforming 88.33% of the companies in the same industry.
Z's Gross Margin has improved in the last couple of years.
Z 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 | 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
Z does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for Z has been increased compared to 1 year ago.
Z has more shares outstanding than it did 5 years ago.
The debt/assets ratio for Z has been reduced compared to a year ago.
2.2 Solvency
Z has an Altman-Z score of 11.76. This indicates that Z is financially healthy and has little risk of bankruptcy at the moment.
Z has a better Altman-Z score (11.76) than 88.33% of its industry peers.
The Debt to FCF ratio of Z is 2.19, which is a good value as it means it would take Z, 2.19 years of fcf income to pay off all of its debts.
Z has a Debt to FCF ratio of 2.19. This is amongst the best in the industry. Z outperforms 85.00% of its industry peers.
Z has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, Z is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 2.19 | ||
| Altman-Z | 11.76 |
ROIC/WACCN/A
WACC8.67%
2.3 Liquidity
A Current Ratio of 2.81 indicates that Z has no problem at all paying its short term obligations.
Z's Current ratio of 2.81 is fine compared to the rest of the industry. Z outperforms 66.67% of its industry peers.
Z has a Quick Ratio of 2.81. This indicates that Z is financially healthy and has no problem in meeting its short term obligations.
Z has a better Quick ratio (2.81) than 73.33% 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.
The Revenue has grown by 14.96% in the past year. This is quite good.
Z 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
Z is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.37% yearly.
The Revenue is expected to grow by 16.40% on average over the next years. This is quite good.
EPS Next Y33.5%
EPS Next 2Y33.85%
EPS Next 3Y34.87%
EPS Next 5Y33.37%
Revenue Next Year14.62%
Revenue Next 2Y14.7%
Revenue Next 3Y14.69%
Revenue Next 5Y16.4%
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
Z is valuated quite expensively with a Price/Earnings ratio of 54.68.
65.00% of the companies in the same industry are more expensive than Z, based on the Price/Earnings ratio.
Z's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
Z is valuated quite expensively with a Price/Forward Earnings ratio of 40.96.
Z's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. Z is cheaper than 71.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of Z to the average of the S&P500 Index (22.68), we can say Z is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.68 | ||
| Fwd PE | 40.96 |
4.2 Price Multiples
Z's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, Z is valued a bit cheaper than 68.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.7 | ||
| EV/EBITDA | 279.76 |
4.3 Compensation for Growth
Z's 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 Z's earnings are expected to grow with 34.87% in the coming years.
PEG (NY)1.63
PEG (5Y)N/A
EPS Next 2Y33.85%
EPS Next 3Y34.87%
5. Dividend
5.1 Amount
No dividends for Z!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
74.91
-3.43 (-4.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners86.43%
Inst Owner Change2.05%
Ins Owners2.17%
Ins Owner Change8.17%
Market Cap18.17B
Analysts75.86
Price Target91.85 (22.61%)
Short Float %6.59%
Short Ratio4.15
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)3.33%
PT rev (3m)34.04%
EPS NQ rev (1m)9.77%
EPS NQ rev (3m)5.79%
EPS NY rev (1m)3.49%
EPS NY rev (3m)3.44%
Revenue NQ rev (1m)1.34%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.68 | ||
| Fwd PE | 40.96 | ||
| P/S | 8.13 | ||
| P/FCF | 70.7 | ||
| P/OCF | 42.45 | ||
| P/B | 3.75 | ||
| P/tB | 9.99 | ||
| EV/EBITDA | 279.76 |
EPS(TTM)1.37
EY1.83%
EPS(NY)1.83
Fwd EY2.44%
FCF(TTM)1.06
FCFY1.41%
OCF(TTM)1.76
OCFY2.36%
SpS9.22
BVpS19.99
TBVpS7.5
PEG (NY)1.63
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 | 11.76 |
F-Score6
WACC8.67%
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 Y33.5%
EPS Next 2Y33.85%
EPS Next 3Y34.87%
EPS Next 5Y33.37%
Revenue 1Y (TTM)14.96%
Revenue growth 3Y-35.01%
Revenue growth 5Y-4%
Sales Q2Q%16.88%
Revenue Next Year14.62%
Revenue Next 2Y14.7%
Revenue Next 3Y14.69%
Revenue Next 5Y16.4%
EBIT growth 1Y23.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year451.84%
EBIT Next 3Y101.35%
EBIT Next 5Y64.13%
FCF growth 1Y35.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.9%
OCF growth 3YN/A
OCF growth 5YN/A