ZIFF DAVIS INC (ZD) Stock Fundamental Analysis
NASDAQ:ZD - Nasdaq - US48123V1026 - Common Stock - Currency: USD
Taking everything into account, ZD scores 6 out of 10 in our fundamental rating. ZD was compared to 71 industry peers in the Interactive Media & Services industry. ZD has an excellent profitability rating, but there are some minor concerns on its financial health. ZD scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ZD very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ZD was profitable.
In the past year ZD had a positive cash flow from operations.
ZD had positive earnings in each of the past 5 years.
In the past 5 years ZD always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 1.70%, ZD is doing good in the industry, outperforming 67.61% of the companies in the same industry.
ZD's Return On Equity of 3.48% is fine compared to the rest of the industry. ZD outperforms 71.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.38%, ZD is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ZD is significantly below the industry average of 11.30%.
The last Return On Invested Capital (4.38%) for ZD is above the 3 year average (4.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 3.48% | ||
| ROIC | 4.38% |
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 has a better Profit Margin (4.50%) than 73.24% of its industry peers.
In the last couple of years the Profit Margin of ZD has declined.
With an excellent Operating Margin value of 14.19%, ZD belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
ZD's Operating Margin has improved in the last couple of years.
ZD's Gross Margin of 85.71% is amongst the best of the industry. ZD outperforms 84.51% of its industry peers.
ZD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.19% | ||
| PM (TTM) | 4.5% | ||
| GM | 85.71% |
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
ZD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ZD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that ZD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ZD (1.72) is comparable to the rest of the industry.
ZD has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as ZD would need 3.05 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.05, ZD is doing good in the industry, outperforming 70.42% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that ZD is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.48, ZD is not doing good in the industry: 61.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.6
WACC7.24%
2.3 Liquidity
ZD has a Current Ratio of 1.41. 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 of 1.41. This is comparable to the rest of the industry: ZD outperforms 40.85% of its industry peers.
ZD has a Quick Ratio of 1.41. This is a normal value and indicates that ZD is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.41, ZD perfoms like the industry average, outperforming 40.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.58% over the past year.
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.
ZD shows a small growth in Revenue. In the last year, the Revenue has grown by 2.76%.
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)7.58%
EPS 3Y-9.84%
EPS 5Y-1.19%
EPS Q2Q%10.73%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y-0.35%
Revenue growth 5Y5.94%
Sales Q2Q%5.88%
3.2 Future
ZD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.95% yearly.
The Revenue is expected to grow by 3.56% on average over the next years.
EPS Next Y14.07%
EPS Next 2Y10.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.64%
Revenue Next 2Y3.77%
Revenue Next 3Y3.56%
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.
4. Valuation
4.1 Price/Earnings Ratio
ZD is valuated cheaply with a Price/Earnings ratio of 5.72.
Based on the Price/Earnings ratio, ZD is valued cheaper than 92.96% of the companies in the same industry.
ZD is valuated cheaply when we compare the Price/Earnings ratio to 29.71, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.02, which indicates a rather cheap valuation of ZD.
Based on the Price/Forward Earnings ratio, ZD is valued cheaply inside the industry as 97.18% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ZD to the average of the S&P500 Index (22.34), we can say ZD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.72 | ||
| Fwd PE | 5.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZD is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
ZD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZD is cheaper than 94.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.75 | ||
| EV/EBITDA | 4.84 |
4.3 Compensation for Growth
ZD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ZD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y10.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ZD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.17
-0.91 (-2.33%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners111.56%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner Change4.78%
Market Cap1.63B
Analysts80
Price Target64.94 (70.13%)
Short Float %6.67%
Short Ratio6.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)0.34%
Min EPS beat(2)-4.88%
Max EPS beat(2)5.56%
EPS beat(4)2
Avg EPS beat(4)-0.3%
Min EPS beat(4)-9.15%
Max EPS beat(4)7.27%
EPS beat(8)4
Avg EPS beat(8)-0.51%
EPS beat(12)6
Avg EPS beat(12)-0.33%
EPS beat(16)10
Avg EPS beat(16)2.61%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-5.57%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-3.89%
Min Revenue beat(4)-6.4%
Max Revenue beat(4)-1.11%
Revenue beat(8)1
Avg Revenue beat(8)-3.03%
Revenue beat(12)1
Avg Revenue beat(12)-3.53%
Revenue beat(16)1
Avg Revenue beat(16)-6.03%
PT rev (1m)0%
PT rev (3m)-1.88%
EPS NQ rev (1m)-5.03%
EPS NQ rev (3m)-6.03%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-2.39%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.72 | ||
| Fwd PE | 5.02 | ||
| P/S | 1.16 | ||
| P/FCF | 5.75 | ||
| P/OCF | 4.18 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.84 |
EPS(TTM)6.67
EY17.47%
EPS(NY)7.61
Fwd EY19.93%
FCF(TTM)6.64
FCFY17.39%
OCF(TTM)9.13
OCFY23.93%
SpS32.8
BVpS42.37
TBVpS-4.57
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 3.48% | ||
| ROCE | 7.09% | ||
| ROIC | 4.38% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 41.92% | ||
| OM | 14.19% | ||
| PM (TTM) | 4.5% | ||
| GM | 85.71% | ||
| FCFM | 20.24% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 50.32% | ||
| Cap/Sales | 7.61% | ||
| Interest Coverage | 6.89 | ||
| Cash Conversion | 95% | ||
| Profit Quality | 449.95% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 1.72 |
F-Score7
WACC7.24%
ROIC/WACC0.6
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)7.58%
EPS 3Y-9.84%
EPS 5Y-1.19%
EPS Q2Q%10.73%
EPS Next Y14.07%
EPS Next 2Y10.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.76%
Revenue growth 3Y-0.35%
Revenue growth 5Y5.94%
Sales Q2Q%5.88%
Revenue Next Year3.64%
Revenue Next 2Y3.77%
Revenue Next 3Y3.56%
Revenue Next 5YN/A
EBIT growth 1Y4.96%
EBIT growth 3Y-2.66%
EBIT growth 5Y17.66%
EBIT Next Year32.09%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y34.3%
FCF growth 3Y-11.02%
FCF growth 5Y-3.66%
OCF growth 1Y21.99%
OCF growth 3Y-8.91%
OCF growth 5Y-1.1%