ZIFF DAVIS INC (ZD) Stock Fundamental Analysis
NASDAQ:ZD - Nasdaq - US48123V1026 - Common Stock - Currency: USD
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 valued quite cheap, but it does not seem to be growing.
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.
In the past 5 years ZD always reported a positive cash flow from operatings.
1.2 Ratios
ZD's Return On Assets of 2.18% is in line compared to the rest of the industry. ZD outperforms 60.00% of its industry peers.
With a decent Return On Equity value of 4.21%, ZD is doing good in the industry, outperforming 64.29% of the companies in the same industry.
ZD's Return On Invested Capital of 4.35% is fine compared to the rest of the industry. ZD outperforms 71.43% of its industry peers.
ZD had an Average Return On Invested Capital over the past 3 years of 4.24%. This is significantly below the industry average of 12.03%.
The 3 year average ROIC (4.24%) for ZD is below the current ROIC(4.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 4.21% | ||
| ROIC | 4.35% |
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 (5.41%) than 72.86% of its industry peers.
ZD's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 14.00%, ZD is doing good in the industry, outperforming 78.57% of the companies in the same industry.
ZD's Operating Margin has improved in the last couple of years.
ZD has a better Gross Margin (85.84%) than 85.71% of its industry peers.
ZD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14% | ||
| PM (TTM) | 5.41% | ||
| GM | 85.84% |
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
The number of shares outstanding for ZD has been reduced compared to 5 years ago.
Compared to 1 year ago, ZD has an improved debt to assets ratio.
2.2 Solvency
ZD has an Altman-Z score of 1.76. This is a bad value and indicates that ZD is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ZD (1.76) is comparable to the rest of the industry.
The Debt to FCF ratio of ZD is 3.74, which is a good value as it means it would take ZD, 3.74 years of fcf income to pay off all of its debts.
ZD has a Debt to FCF ratio of 3.74. This is in the better half of the industry: ZD outperforms 62.86% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that ZD is not too dependend on debt financing.
ZD has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: ZD underperforms 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.64
WACC6.81%
2.3 Liquidity
ZD has a Current Ratio of 1.52. 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 1.52 is on the low side compared to the rest of the industry. ZD is outperformed by 67.14% of its industry peers.
ZD has a Quick Ratio of 1.52. 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 1.52 is on the low side compared to the rest of the industry. ZD is outperformed by 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.67% over the past year.
ZD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.19% yearly.
Looking at the last year, ZD shows a small growth in Revenue. The Revenue has grown by 3.24% in the last year.
The Revenue has been growing slightly by 5.94% on average over the past years.
EPS 1Y (TTM)2.67%
EPS 3Y-9.84%
EPS 5Y-1.19%
EPS Q2Q%-10.24%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-0.35%
Revenue growth 5Y5.94%
Sales Q2Q%4.49%
3.2 Future
ZD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.23% yearly.
ZD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y4.64%
EPS Next 2Y4.81%
EPS Next 3Y5.23%
EPS Next 5YN/A
Revenue Next Year3.37%
Revenue Next 2Y3.51%
Revenue Next 3Y3.32%
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
ZD is valuated cheaply with a Price/Earnings ratio of 4.94.
Based on the Price/Earnings ratio, ZD is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ZD to the average of the S&P500 Index (27.45), we can say ZD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.41, the valuation of ZD can be described as very cheap.
ZD's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZD is cheaper than 98.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ZD to the average of the S&P500 Index (21.90), we can say ZD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.94 | ||
| Fwd PE | 4.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZD is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZD indicates a rather cheap valuation: ZD is cheaper than 95.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.88 | ||
| EV/EBITDA | 4.32 |
4.3 Compensation for Growth
ZD's 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.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y4.81%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
No dividends for ZD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.29
-0.26 (-0.8%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners107.24%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner Change11.25%
Market Cap1.36B
Analysts77.33
Price Target44.88 (38.99%)
Short Float %9.26%
Short Ratio6.55
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)0
Avg EPS beat(2)-8.06%
Min EPS beat(2)-11.23%
Max EPS beat(2)-4.88%
EPS beat(4)1
Avg EPS beat(4)-4.93%
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)-1.12%
EPS beat(16)9
Avg EPS beat(16)0.2%
Revenue beat(2)0
Avg Revenue beat(2)-3.58%
Min Revenue beat(2)-5.57%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-3.67%
Min Revenue beat(4)-6.4%
Max Revenue beat(4)-1.11%
Revenue beat(8)0
Avg Revenue beat(8)-3.31%
Revenue beat(12)1
Avg Revenue beat(12)-3.31%
Revenue beat(16)1
Avg Revenue beat(16)-5.09%
PT rev (1m)-19.76%
PT rev (3m)-30.89%
EPS NQ rev (1m)-2.57%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)-2.23%
EPS NY rev (3m)-8.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.94 | ||
| Fwd PE | 4.41 | ||
| P/S | 0.96 | ||
| P/FCF | 5.88 | ||
| P/OCF | 4.05 | ||
| P/B | 0.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.32 |
EPS(TTM)6.54
EY20.25%
EPS(NY)7.33
Fwd EY22.69%
FCF(TTM)5.49
FCFY17.01%
OCF(TTM)7.97
OCFY24.68%
SpS33.64
BVpS43.27
TBVpS-4.59
PEG (NY)1.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 4.21% | ||
| ROCE | 7.05% | ||
| ROIC | 4.35% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 33.47% | ||
| OM | 14% | ||
| PM (TTM) | 5.41% | ||
| GM | 85.84% | ||
| FCFM | 16.33% |
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-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.74 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 47.48% | ||
| Cap/Sales | 7.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.33% | ||
| Profit Quality | 301.65% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.76 |
F-Score8
WACC6.81%
ROIC/WACC0.64
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)2.67%
EPS 3Y-9.84%
EPS 5Y-1.19%
EPS Q2Q%-10.24%
EPS Next Y4.64%
EPS Next 2Y4.81%
EPS Next 3Y5.23%
EPS Next 5YN/A
Revenue 1Y (TTM)3.24%
Revenue growth 3Y-0.35%
Revenue growth 5Y5.94%
Sales Q2Q%4.49%
Revenue Next Year3.37%
Revenue Next 2Y3.51%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y-0.45%
EBIT growth 3Y-2.66%
EBIT growth 5Y17.66%
EBIT Next Year26.07%
EBIT Next 3Y10.65%
EBIT Next 5YN/A
FCF growth 1Y0.76%
FCF growth 3Y-11.02%
FCF growth 5Y-3.66%
OCF growth 1Y0.05%
OCF growth 3Y-8.91%
OCF growth 5Y-1.1%