Taking everything into account, ZD scores 5 out of 10 in our fundamental rating. ZD was compared to 70 industry peers in the Interactive Media & Services industry. ZD scores excellent on profitability, but there are some minor concerns on its financial health. ZD is cheap, but on the other hand it scores bad on growth. This makes ZD very considerable for value investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ZD had positive earnings in the past year.
ZD had a positive operating cash flow in the past year.
ZD had positive earnings in each of the past 5 years.
ZD had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

ZD has a Return On Assets of 3.19%. This is in the better half of the industry: ZD outperforms 70.00% of its industry peers.
With a decent Return On Equity value of 6.17%, ZD is doing good in the industry, outperforming 72.86% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.29%, ZD is doing good in the industry, outperforming 67.14% 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 13.53%.
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

ZD's Profit Margin of 7.62% is fine compared to the rest of the industry. ZD outperforms 74.29% of its industry peers.
In the last couple of years the Profit Margin of ZD has declined.
Looking at the Operating Margin, with a value of 13.25%, ZD is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
In the last couple of years the Operating Margin of ZD has grown nicely.
ZD's Gross Margin of 86.50% is amongst the best of the industry. ZD outperforms 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

ZD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ZD has been reduced compared to 1 year ago.
Compared to 5 years ago, ZD has less shares outstanding
Compared to 1 year ago, ZD has an improved debt to assets ratio.

2.2 Solvency

ZD has an Altman-Z score of 1.84. 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 1.84. This is comparable to the rest of the industry: ZD outperforms 60.00% of its industry peers.
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.
The Debt to FCF ratio of ZD (3.32) is better than 68.57% of its industry peers.
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	1.84

ROIC/WACC0.69

WACC6.23%

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.
ZD has a Current ratio (1.61) which 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.
The Revenue has been growing slightly by 5.70% in the past year.
The Revenue has been growing slightly by 5.94% on average over the past years.

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

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

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

ZD is valuated cheaply with a Price/Earnings ratio of 5.69.
ZD's Price/Earnings ratio is rather cheap when compared to the industry. ZD is cheaper than 91.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.32. ZD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.01, which indicates a rather cheap valuation of ZD.
95.71% of the companies in the same industry are more expensive than ZD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ZD to the average of the S&P500 Index (25.57), we can say ZD is valued rather cheaply.

		Industry Rank	Sector Rank
PE	5.69
Fwd PE	5.01

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ZD is valued cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ZD is valued cheaper than 94.29% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	5.78
EV/EBITDA	4.42

4.3 Compensation for Growth

The 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.