ZIFF DAVIS INC (ZD) Stock Fundamental Analysis
USA - NASDAQ:ZD - US48123V1026 - Common Stock
38.3 USD
-0.9 (-2.3%)
38.15 USD
-0.15 (-0.39%)
Overall ZD gets a fundamental rating of 5 out of 10. We evaluated ZD against 69 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 is valued quite cheap, but it does not seem to be growing. This makes ZD very considerable for value investing!
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.
In the past 5 years ZD has always been profitable.
ZD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZD has a Return On Assets (1.88%) which is in line with its industry peers.
ZD has a better Return On Equity (3.59%) than 63.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.43%, ZD is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
ZD had an Average Return On Invested Capital over the past 3 years of 4.24%. This is significantly below the industry average of 12.98%.
The last Return On Invested Capital (4.43%) for ZD is above the 3 year average (4.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 3.59% | ||
| ROIC | 4.43% |
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
ZD's Profit Margin of 4.57% is fine compared to the rest of the industry. ZD outperforms 60.87% of its industry peers.
ZD's Profit Margin has declined in the last couple of years.
ZD has a Operating Margin of 14.03%. This is in the better half of the industry: ZD outperforms 79.71% of its industry peers.
In the last couple of years the Operating Margin of ZD has grown nicely.
ZD's Gross Margin of 86.40% is amongst the best of the industry. ZD outperforms 86.96% 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 | 14.03% | ||
| PM (TTM) | 4.57% | ||
| GM | 86.4% |
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%
2. Health
2.1 Basic Checks
ZD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ZD has less shares outstanding
Compared to 5 years ago, ZD has less shares outstanding
The debt/assets ratio for ZD has been reduced compared to a year ago.
2.2 Solvency
ZD has an Altman-Z score of 1.88. This is not the best score and indicates that ZD is in the grey zone with still only limited risk for bankruptcy at the moment.
ZD has a Altman-Z score of 1.88. This is comparable to the rest of the industry: ZD outperforms 55.07% of its industry peers.
ZD has a debt to FCF ratio of 3.71. This is a good value and a sign of high solvency as ZD would need 3.71 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.71, ZD is doing good in the industry, outperforming 63.77% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that ZD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, ZD is doing worse than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.71 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.57
WACC7.81%
2.3 Liquidity
ZD has a Current Ratio of 1.59. 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 (1.59) is worse than 60.87% of its industry peers.
ZD has a Quick Ratio of 1.59. This is a normal value and indicates that ZD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.59, ZD is doing worse than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
ZD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.10%.
Measured over the past years, ZD shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.19% on average per year.
Looking at the last year, ZD shows a small growth in Revenue. The Revenue has grown by 5.93% in the last year.
Measured over the past years, ZD shows a small growth in Revenue. The Revenue has been growing by 5.94% on average per year.
EPS 1Y (TTM)5.1%
EPS 3Y-9.84%
EPS 5Y-1.19%
EPS Q2Q%5.08%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y-0.35%
Revenue growth 5Y5.94%
Sales Q2Q%9.79%
3.2 Future
The Earnings Per Share is expected to grow by 6.46% on average over the next years.
The Revenue is expected to grow by 3.69% on average over the next years.
EPS Next Y5.19%
EPS Next 2Y6.79%
EPS Next 3Y6.46%
EPS Next 5YN/A
Revenue Next Year4.33%
Revenue Next 2Y4.14%
Revenue Next 3Y3.69%
Revenue Next 5YN/A
3.3 Evolution
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.80, the valuation of ZD can be described as very cheap.
Based on the Price/Earnings ratio, ZD is valued cheaply inside the industry as 89.86% of the companies are valued more expensively.
ZD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
A Price/Forward Earnings ratio of 5.04 indicates a rather cheap valuation of ZD.
ZD's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZD is cheaper than 97.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. ZD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.8 | ||
| Fwd PE | 5.04 |
4.2 Price Multiples
94.20% of the companies in the same industry are more expensive than ZD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ZD is valued cheaper than 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 4.71 |
4.3 Compensation for Growth
ZD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ZD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.12
PEG (5Y)N/A
EPS Next 2Y6.79%
EPS Next 3Y6.46%
5. Dividend
5.1 Amount
ZD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.3
-0.9 (-2.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners108.3%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner Change4.99%
Market Cap1.57B
Analysts77.33
Price Target47.09 (22.95%)
Short Float %10.38%
Short Ratio7.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.87%
Min EPS beat(2)-11.23%
Max EPS beat(2)1.49%
EPS beat(4)2
Avg EPS beat(4)-2.27%
Min EPS beat(4)-11.23%
Max EPS beat(4)5.56%
EPS beat(8)3
Avg EPS beat(8)-2.04%
EPS beat(12)6
Avg EPS beat(12)-1.71%
EPS beat(16)9
Avg EPS beat(16)-0.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-5.57%
Max Revenue beat(4)1.14%
Revenue beat(8)1
Avg Revenue beat(8)-2.86%
Revenue beat(12)2
Avg Revenue beat(12)-2.71%
Revenue beat(16)2
Avg Revenue beat(16)-4.02%
PT rev (1m)4.92%
PT rev (3m)4.92%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-2.82%
EPS NY rev (1m)0.53%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.8 | ||
| Fwd PE | 5.04 | ||
| P/S | 1.09 | ||
| P/FCF | 6.74 | ||
| P/OCF | 4.59 | ||
| P/B | 0.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.71 |
EPS(TTM)6.6
EY17.23%
EPS(NY)7.61
Fwd EY19.86%
FCF(TTM)5.69
FCFY14.85%
OCF(TTM)8.34
OCFY21.77%
SpS35.3
BVpS44.94
TBVpS-4.25
PEG (NY)1.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 3.59% | ||
| ROCE | 7.19% | ||
| ROIC | 4.43% | ||
| ROICexc | 5.29% | ||
| ROICexgc | 35.58% | ||
| OM | 14.03% | ||
| PM (TTM) | 4.57% | ||
| GM | 86.4% | ||
| FCFM | 16.11% |
ROA(3y)1.57%
ROA(5y)4.39%
ROE(3y)3.01%
ROE(5y)9.34%
ROIC(3y)4.24%
ROIC(5y)3.97%
ROICexc(3y)5.44%
ROICexc(5y)5.07%
ROICexgc(3y)37.52%
ROICexgc(5y)N/A
ROCE(3y)6.87%
ROCE(5y)6.44%
ROICexcg growth 3Y-8.29%
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.96%
ROICexc growth 5Y15.52%
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%
F-Score7
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.71 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 48.39% | ||
| Cap/Sales | 7.51% | ||
| Interest Coverage | 6.49 | ||
| Cash Conversion | 79.9% | ||
| Profit Quality | 352.73% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 1.88 |
F-Score7
WACC7.81%
ROIC/WACC0.57
Cap/Depr(3y)47.23%
Cap/Depr(5y)45.52%
Cap/Sales(3y)7.74%
Cap/Sales(5y)7.9%
Profit Quality(3y)440.1%
Profit Quality(5y)331.37%
High Growth Momentum
Growth
EPS 1Y (TTM)5.1%
EPS 3Y-9.84%
EPS 5Y-1.19%
EPS Q2Q%5.08%
EPS Next Y5.19%
EPS Next 2Y6.79%
EPS Next 3Y6.46%
EPS Next 5YN/A
Revenue 1Y (TTM)5.93%
Revenue growth 3Y-0.35%
Revenue growth 5Y5.94%
Sales Q2Q%9.79%
Revenue Next Year4.33%
Revenue Next 2Y4.14%
Revenue Next 3Y3.69%
Revenue Next 5YN/A
EBIT growth 1Y7.6%
EBIT growth 3Y-2.66%
EBIT growth 5Y17.66%
EBIT Next Year26.07%
EBIT Next 3Y10.65%
EBIT Next 5YN/A
FCF growth 1Y21.86%
FCF growth 3Y-11.02%
FCF growth 5Y-3.66%
OCF growth 1Y14.38%
OCF growth 3Y-8.91%
OCF growth 5Y-1.1%