Overall ZD gets a fundamental rating of 5 out of 10. We evaluated ZD against 70 industry peers in the Interactive Media & Services industry. While ZD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ZD has a bad growth rate and is valued cheaply. With these ratings, ZD could be worth investigating further for value investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ZD had positive earnings in the past year.
In the past year ZD had a positive cash flow from operations.
Each year in the past 5 years ZD has been profitable.
Each year in the past 5 years ZD had a positive operating cash flow.

1.2 Ratios

The Return On Assets of ZD (3.19%) is better than 70.00% of its industry peers.
The Return On Equity of ZD (6.17%) is better than 72.86% of its industry peers.
ZD's Return On Invested Capital of 4.29% is fine compared to the rest of the industry. ZD outperforms 67.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZD is significantly below the industry average of 13.70%.
The last Return On Invested Capital (4.29%) for ZD is above the 3 year average (4.24%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	3.19%
ROE	6.17%
ROIC	4.29%

ROA(3y)1.57%

ROA(5y)4.39%

ROE(3y)3.01%

ROE(5y)9.34%

ROIC(3y)4.24%

ROIC(5y)3.97%

1.3 Margins

With a decent Profit Margin value of 7.62%, ZD is doing good in the industry, outperforming 74.29% of the companies in the same industry.
In the last couple of years the Profit Margin of ZD has declined.
ZD has a Operating Margin of 13.25%. This is in the better half of the industry: ZD outperforms 77.14% of its industry peers.
ZD's Operating Margin has improved in the last couple of years.
The Gross Margin of ZD (86.50%) is better than 87.14% of its industry peers.
In the last couple of years the Gross Margin of ZD has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	13.25%
PM (TTM)	7.62%
GM	86.5%

OM growth 3Y-2.32%

OM growth 5Y11.07%

PM growth 3Y-49.55%

PM growth 5Y-26.37%

GM growth 3Y-0.39%

GM growth 5Y0.85%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZD is destroying value.
The number of shares outstanding for ZD has been reduced compared to 1 year ago.
ZD has less shares outstanding than it did 5 years ago.
ZD has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 1.86 indicates that ZD is not a great score, but indicates only limited risk for bankruptcy at the moment.
ZD has a Altman-Z score (1.86) which is comparable to the rest of the industry.
The Debt to FCF ratio of ZD is 3.32, which is a good value as it means it would take ZD, 3.32 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.32, ZD is doing good in the industry, outperforming 68.57% of the companies in the same industry.
ZD has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, ZD is not doing good in the industry: 64.29% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.48
Debt/FCF	3.32
Altman-Z	1.86

ROIC/WACC0.69

WACC6.26%

2.3 Liquidity

ZD has a Current Ratio of 1.61. This is a normal value and indicates that ZD is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ZD (1.61) is comparable to the rest of the industry.
A Quick Ratio of 1.61 indicates that ZD should not have too much problems paying its short term obligations.
ZD has a Quick ratio (1.61) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.61
Quick Ratio	1.61

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

ZD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.67%.
ZD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.19% yearly.
ZD shows a small growth in Revenue. In the last year, the Revenue has grown by 5.70%.
ZD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.94% yearly.

EPS 1Y (TTM)4.67%

EPS 3Y-9.84%

EPS 5Y-1.19%

EPS Q2Q%7.32%

Revenue 1Y (TTM)5.7%

Revenue growth 3Y-0.35%

Revenue growth 5Y5.94%

Sales Q2Q%2.87%

3.2 Future

The Earnings Per Share is expected to grow by 6.07% on average over the next years.
Based on estimates for the next years, ZD will show a small growth in Revenue. The Revenue will grow by 3.22% on average per year.

EPS Next Y4.93%

EPS Next 2Y6.95%

EPS Next 3Y6.07%

EPS Next 5YN/A

Revenue Next Year3.37%

Revenue Next 2Y3.14%

Revenue Next 3Y3.22%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 5.85, which indicates a rather cheap valuation of ZD.
Based on the Price/Earnings ratio, ZD is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.60. ZD is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.15 indicates a rather cheap valuation of ZD.
Based on the Price/Forward Earnings ratio, ZD is valued cheaply inside the industry as 95.71% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ZD to the average of the S&P500 Index (25.83), we can say ZD is valued rather cheaply.

		Industry Rank	Sector Rank
PE	5.85
Fwd PE	5.15

4.2 Price Multiples

ZD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZD is cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ZD is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	5.94
EV/EBITDA	4.54

4.3 Compensation for Growth

ZD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ZD may justify a higher PE ratio.