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ZIFF DAVIS INC (ZD) Stock Fundamental Analysis

NASDAQ:ZD - Nasdaq - US48123V1026 - Common Stock - Currency: USD

53.05  -1.28 (-2.36%)

After market: 53.05 0 (0%)

Fundamental Rating

5

Taking everything into account, ZD scores 5 out of 10 in our fundamental rating. ZD was compared to 71 industry peers in the Interactive Media & Services industry. ZD scores excellent on profitability, but there are some minor concerns on its financial health. ZD may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

7

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.
In the past 5 years ZD has always been profitable.
In the past 5 years ZD always reported a positive cash flow from operatings.
ZD Yearly Net Income VS EBIT VS OCF VS FCFZD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

1.2 Ratios

ZD has a Return On Assets of 1.82%. This is in the better half of the industry: ZD outperforms 68.66% of its industry peers.
ZD has a Return On Equity of 3.56%. This is in the better half of the industry: ZD outperforms 71.64% of its industry peers.
ZD's Return On Invested Capital of 4.52% is fine compared to the rest of the industry. ZD outperforms 67.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZD is significantly below the industry average of 12.59%.
The 3 year average ROIC (4.14%) for ZD is below the current ROIC(4.52%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.82%
ROE 3.56%
ROIC 4.52%
ROA(3y)5.39%
ROA(5y)5.3%
ROE(3y)10.26%
ROE(5y)11.97%
ROIC(3y)4.14%
ROIC(5y)3.51%
ZD Yearly ROA, ROE, ROICZD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

1.3 Margins

With a decent Profit Margin value of 4.52%, ZD is doing good in the industry, outperforming 74.63% of the companies in the same industry.
In the last couple of years the Profit Margin of ZD has declined.
The Operating Margin of ZD (14.59%) is better than 82.09% of its industry peers.
ZD's Operating Margin has declined in the last couple of years.
ZD has a better Gross Margin (85.38%) than 80.60% of its industry peers.
ZD's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 14.59%
PM (TTM) 4.52%
GM 85.38%
OM growth 3Y5.16%
OM growth 5Y-7.25%
PM growth 3Y-38.35%
PM growth 5Y-21.95%
GM growth 3Y0.37%
GM growth 5Y0.52%
ZD Yearly Profit, Operating, Gross MarginsZD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZD is destroying value.
Compared to 1 year ago, ZD has less shares outstanding
ZD has less shares outstanding than it did 5 years ago.
ZD has a worse debt/assets ratio than last year.
ZD Yearly Shares OutstandingZD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
ZD Yearly Total Debt VS Total AssetsZD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

ZD has an Altman-Z score of 2.06. 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's Altman-Z score of 2.06 is in line compared to the rest of the industry. ZD outperforms 59.70% of its industry peers.
The Debt to FCF ratio of ZD is 3.95, which is a good value as it means it would take ZD, 3.95 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.95, ZD is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
ZD has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.49, ZD is doing worse than 67.16% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 3.95
Altman-Z 2.06
ROIC/WACC0.63
WACC7.16%
ZD Yearly LT Debt VS Equity VS FCFZD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.3 Liquidity

ZD has a Current Ratio of 1.42. 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 Current ratio of 1.42 is on the low side compared to the rest of the industry. ZD is outperformed by 61.19% of its industry peers.
A Quick Ratio of 1.42 indicates that ZD should not have too much problems paying its short term obligations.
ZD has a Quick ratio of 1.42. This is in the lower half of the industry: ZD underperforms 61.19% of its industry peers.
Industry RankSector Rank
Current Ratio 1.42
Quick Ratio 1.42
ZD Yearly Current Assets VS Current LiabilitesZD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

4

3. Growth

3.1 Past

ZD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.73%.
ZD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.51% yearly.
ZD shows a small growth in Revenue. In the last year, the Revenue has grown by 0.58%.
ZD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.47% yearly.
EPS 1Y (TTM)4.73%
EPS 3Y-9.05%
EPS 5Y-0.51%
EPS Q2Q%9.33%
Revenue 1Y (TTM)0.58%
Revenue growth 3Y5.59%
Revenue growth 5Y2.47%
Sales Q2Q%3.69%

3.2 Future

The Earnings Per Share is expected to grow by 9.82% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.75% on average over the next years.
EPS Next Y11.76%
EPS Next 2Y10.78%
EPS Next 3Y9.82%
EPS Next 5YN/A
Revenue Next Year3.12%
Revenue Next 2Y4.33%
Revenue Next 3Y4.75%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ZD Yearly Revenue VS EstimatesZD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
ZD Yearly EPS VS EstimatesZD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

9

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 8.26, which indicates a very decent valuation of ZD.
88.06% of the companies in the same industry are more expensive than ZD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.58, ZD is valued rather cheaply.
ZD is valuated cheaply with a Price/Forward Earnings ratio of 6.97.
ZD's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZD is cheaper than 92.54% of the companies in the same industry.
ZD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.47.
Industry RankSector Rank
PE 8.26
Fwd PE 6.97
ZD Price Earnings VS Forward Price EarningsZD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ZD is valued cheaper than 89.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ZD is valued cheaper than 83.58% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.38
EV/EBITDA 6.49
ZD Per share dataZD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ZD may justify a higher PE ratio.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y10.78%
EPS Next 3Y9.82%

0

5. Dividend

5.1 Amount

ZD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

ZIFF DAVIS INC

NASDAQ:ZD (1/24/2025, 8:16:58 PM)

After market: 53.05 0 (0%)

53.05

-1.28 (-2.36%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-17 2025-02-17/amc
Inst Owners103.82%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner Change4.99%
Market Cap2.27B
Analysts80
Price Target74.9 (41.19%)
Short Float %6.79%
Short Ratio6.2
Dividend
Industry RankSector 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)-1.8%
Min EPS beat(2)-9.15%
Max EPS beat(2)5.56%
EPS beat(4)2
Avg EPS beat(4)0.81%
Min EPS beat(4)-9.15%
Max EPS beat(4)7.27%
EPS beat(8)4
Avg EPS beat(8)-0.77%
EPS beat(12)7
Avg EPS beat(12)0.23%
EPS beat(16)11
Avg EPS beat(16)3.42%
Revenue beat(2)0
Avg Revenue beat(2)-3.75%
Min Revenue beat(2)-6.4%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-3.66%
Min Revenue beat(4)-6.4%
Max Revenue beat(4)-1.11%
Revenue beat(8)1
Avg Revenue beat(8)-2.81%
Revenue beat(12)1
Avg Revenue beat(12)-3.27%
Revenue beat(16)1
Avg Revenue beat(16)-10%
PT rev (1m)-1.88%
PT rev (3m)4.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.41%
EPS NY rev (1m)0%
EPS NY rev (3m)1.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
Industry RankSector Rank
PE 8.26
Fwd PE 6.97
P/S 1.64
P/FCF 10.38
P/OCF 6.99
P/B 1.29
P/tB N/A
EV/EBITDA 6.49
EPS(TTM)6.42
EY12.1%
EPS(NY)7.61
Fwd EY14.34%
FCF(TTM)5.11
FCFY9.64%
OCF(TTM)7.59
OCFY14.3%
SpS32.26
BVpS41
TBVpS-6.82
PEG (NY)0.7
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.82%
ROE 3.56%
ROCE 7.31%
ROIC 4.52%
ROICexc 5.25%
ROICexgc 38.56%
OM 14.59%
PM (TTM) 4.52%
GM 85.38%
FCFM 15.85%
ROA(3y)5.39%
ROA(5y)5.3%
ROE(3y)10.26%
ROE(5y)11.97%
ROIC(3y)4.14%
ROIC(5y)3.51%
ROICexc(3y)5.56%
ROICexc(5y)4.53%
ROICexgc(3y)41.73%
ROICexgc(5y)N/A
ROCE(3y)6.71%
ROCE(5y)5.68%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-23.39%
ROICexc growth 3Y15.19%
ROICexc growth 5Y-6.97%
OM growth 3Y5.16%
OM growth 5Y-7.25%
PM growth 3Y-38.35%
PM growth 5Y-21.95%
GM growth 3Y0.37%
GM growth 5Y0.52%
F-Score6
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 3.95
Debt/EBITDA 2.04
Cap/Depr 47.7%
Cap/Sales 7.67%
Interest Coverage 250
Cash Conversion 76.7%
Profit Quality 350.32%
Current Ratio 1.42
Quick Ratio 1.42
Altman-Z 2.06
F-Score6
WACC7.16%
ROIC/WACC0.63
Cap/Depr(3y)45.15%
Cap/Depr(5y)41.54%
Cap/Sales(3y)7.88%
Cap/Sales(5y)7.72%
Profit Quality(3y)317.15%
Profit Quality(5y)272.69%
High Growth Momentum
Growth
EPS 1Y (TTM)4.73%
EPS 3Y-9.05%
EPS 5Y-0.51%
EPS Q2Q%9.33%
EPS Next Y11.76%
EPS Next 2Y10.78%
EPS Next 3Y9.82%
EPS Next 5YN/A
Revenue 1Y (TTM)0.58%
Revenue growth 3Y5.59%
Revenue growth 5Y2.47%
Sales Q2Q%3.69%
Revenue Next Year3.12%
Revenue Next 2Y4.33%
Revenue Next 3Y4.75%
Revenue Next 5YN/A
EBIT growth 1Y-0.58%
EBIT growth 3Y11.04%
EBIT growth 5Y-4.96%
EBIT Next Year61.2%
EBIT Next 3Y21.62%
EBIT Next 5YN/A
FCF growth 1Y-20.12%
FCF growth 3Y-18.09%
FCF growth 5Y-9.31%
OCF growth 1Y-14.54%
OCF growth 3Y-12.65%
OCF growth 5Y-4.43%