ZD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 valued quite cheap, but it does not seem to be growing. These ratings could make ZD a good candidate for value investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years ZD has always been profitable.
In the past 5 years ZD always reported a positive cash flow from operatings.

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.
Looking at the Return On Equity, with a value of 6.17%, ZD is in the better half of the industry, outperforming 72.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.29%, ZD is in the better half of 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 13.70%.
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

The Profit Margin of ZD (7.62%) is better than 74.29% of its industry peers.
ZD's Profit Margin has declined in the last couple of years.
ZD has a better Operating Margin (13.25%) than 77.14% of its industry peers.
In the last couple of years the Operating Margin of ZD has grown nicely.
Looking at the Gross Margin, with a value of 86.50%, ZD belongs to the top of the industry, outperforming 87.14% of the companies in the same industry.
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.
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

An Altman-Z score of 1.87 indicates that ZD is not a great score, but indicates only limited risk for bankruptcy at the moment.
ZD has a better Altman-Z score (1.87) than 61.43% 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.
ZD's Debt to FCF ratio of 3.32 is fine compared to the rest of the industry. ZD outperforms 68.57% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that ZD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, ZD is doing worse than 64.29% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.48
Debt/FCF	3.32
Altman-Z	1.87

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.
With a Current ratio value of 1.61, ZD perfoms like the industry average, outperforming 41.43% of the companies in the same industry.
ZD has a Quick 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's Quick ratio of 1.61 is in line compared to the rest of the industry. ZD outperforms 41.43% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.61
Quick Ratio	1.61

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WACC

Debt/Equity

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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%.
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 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

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 5.69 indicates a rather cheap valuation of ZD.
Compared to the rest of the industry, the Price/Earnings ratio of ZD indicates a rather cheap valuation: ZD is cheaper than 91.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. ZD is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.01, the valuation of ZD can be described as very cheap.
95.71% of the companies in the same industry are more expensive than ZD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZD indicates a rather cheap valuation: ZD is cheaper than 94.29% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	5.78
EV/EBITDA	4.59

4.3 Compensation for Growth

The 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.