ZILLOW GROUP INC - A (ZG) Stock Fundamental Analysis
NASDAQ:ZG - Nasdaq - US98954M1018 - Common Stock
Overall ZG gets a fundamental rating of 5 out of 10. We evaluated ZG against 65 industry peers in the Real Estate Management & Development industry. ZG has a great financial health rating, but its profitability evaluates not so good. ZG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ZG had positive earnings in the past year.
ZG had a positive operating cash flow in the past year.
In the past 5 years ZG always reported negative net income.
In multiple years ZG reported negative operating cash flow during the last 5 years.
1.2 Ratios
ZG has a Return On Assets of -2.16%. This is comparable to the rest of the industry: ZG outperforms 52.46% of its industry peers.
The Return On Equity of ZG (-2.86%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -2.86% | ||
| ROIC | N/A |
ROA(3y)-2.95%
ROA(5y)-3.2%
ROE(3y)-5.21%
ROE(5y)-5.59%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 76.44%, ZG belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
ZG's Gross Margin has declined in the last couple of years.
ZG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.44% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.23%
GM growth 5Y-2.4%
2. Health
2.1 Basic Checks
ZG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ZG has less shares outstanding
ZG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ZG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.30 indicates that ZG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.30, ZG belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
The Debt to FCF ratio of ZG is 4.79, which is a neutral value as it means it would take ZG, 4.79 years of fcf income to pay off all of its debts.
ZG has a Debt to FCF ratio of 4.79. This is amongst the best in the industry. ZG outperforms 85.25% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that ZG is not too dependend on debt financing.
ZG has a better Debt to Equity ratio (0.14) than 73.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 7.3 |
ROIC/WACCN/A
WACC8.56%
2.3 Liquidity
ZG has a Current Ratio of 3.13. This indicates that ZG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ZG (3.13) is better than 75.41% of its industry peers.
ZG has a Quick Ratio of 3.13. This indicates that ZG is financially healthy and has no problem in meeting its short term obligations.
ZG's Quick ratio of 3.13 is amongst the best of the industry. ZG outperforms 80.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
ZG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.56%.
The Earnings Per Share has been growing by 26.63% on average over the past years. This is a very strong growth
The Revenue has grown by 13.12% in the past year. This is quite good.
Measured over the past years, ZG shows a small growth in Revenue. The Revenue has been growing by 7.84% on average per year.
EPS 1Y (TTM)1.56%
EPS 3Y52.23%
EPS 5Y26.63%
EPS Q2Q%6.06%
Revenue 1Y (TTM)13.12%
Revenue growth 3Y-16.49%
Revenue growth 5Y7.84%
Sales Q2Q%17.14%
3.2 Future
The Earnings Per Share is expected to grow by 29.13% on average over the next years. This is a very strong growth
Based on estimates for the next years, ZG will show a quite strong growth in Revenue. The Revenue will grow by 13.76% on average per year.
EPS Next Y8.18%
EPS Next 2Y22.82%
EPS Next 3Y25.11%
EPS Next 5Y29.13%
Revenue Next Year15.5%
Revenue Next 2Y14.9%
Revenue Next 3Y14.65%
Revenue Next 5Y13.76%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 57.71 indicates a quite expensive valuation of ZG.
62.30% of the companies in the same industry are more expensive than ZG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ZG is valued quite expensively.
With a Price/Forward Earnings ratio of 39.16, ZG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ZG is valued a bit cheaper than 73.77% of the companies in the same industry.
ZG is valuated expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.71 | ||
| Fwd PE | 39.16 |
4.2 Price Multiples
ZG's Enterprise Value to EBITDA ratio is in line with the industry average.
70.49% of the companies in the same industry are more expensive than ZG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.46 | ||
| EV/EBITDA | 911.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ZG's earnings are expected to grow with 25.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.05
PEG (5Y)2.17
EPS Next 2Y22.82%
EPS Next 3Y25.11%
5. Dividend
5.1 Amount
No dividends for ZG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZILLOW GROUP INC - A
NASDAQ:ZG (1/21/2025, 8:00:02 PM)
After market: 75 -0.02 (-0.03%)75.02
+0.19 (+0.25%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change0.02%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.86B
Analysts75
Price Target78.56 (4.72%)
Short Float %1.45%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.72%
Min EPS beat(2)17.36%
Max EPS beat(2)42.09%
EPS beat(4)4
Avg EPS beat(4)34.18%
Min EPS beat(4)8.93%
Max EPS beat(4)68.35%
EPS beat(8)8
Avg EPS beat(8)88.39%
EPS beat(12)12
Avg EPS beat(12)94.54%
EPS beat(16)15
Avg EPS beat(16)40.69%
Revenue beat(2)2
Avg Revenue beat(2)3.38%
Min Revenue beat(2)2.58%
Max Revenue beat(2)4.19%
Revenue beat(4)4
Avg Revenue beat(4)2.91%
Min Revenue beat(4)1.96%
Max Revenue beat(4)4.19%
Revenue beat(8)8
Avg Revenue beat(8)3.59%
Revenue beat(12)10
Avg Revenue beat(12)-6.16%
Revenue beat(16)12
Avg Revenue beat(16)-17.14%
PT rev (1m)6.75%
PT rev (3m)31.11%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)-16.72%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.71 | ||
| Fwd PE | 39.16 | ||
| P/S | 8.28 | ||
| P/FCF | 80.46 | ||
| P/OCF | 45.56 | ||
| P/B | 3.84 | ||
| P/tB | 10.98 | ||
| EV/EBITDA | 911.91 |
EPS(TTM)1.3
EY1.73%
EPS(NY)1.92
Fwd EY2.55%
FCF(TTM)0.93
FCFY1.24%
OCF(TTM)1.65
OCFY2.19%
SpS9.06
BVpS19.56
TBVpS6.83
PEG (NY)7.05
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -2.86% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.44% | ||
| FCFM | 10.3% |
ROA(3y)-2.95%
ROA(5y)-3.2%
ROE(3y)-5.21%
ROE(5y)-5.59%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.23%
GM growth 5Y-2.4%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.79 | ||
| Debt/EBITDA | 37.94 | ||
| Cap/Depr | 73.59% | ||
| Cap/Sales | 7.88% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 2305.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 | ||
| Altman-Z | 7.3 |
F-Score6
WACC8.56%
ROIC/WACCN/A
Cap/Depr(3y)85.95%
Cap/Depr(5y)91.09%
Cap/Sales(3y)5.64%
Cap/Sales(5y)4.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.56%
EPS 3Y52.23%
EPS 5Y26.63%
EPS Q2Q%6.06%
EPS Next Y8.18%
EPS Next 2Y22.82%
EPS Next 3Y25.11%
EPS Next 5Y29.13%
Revenue 1Y (TTM)13.12%
Revenue growth 3Y-16.49%
Revenue growth 5Y7.84%
Sales Q2Q%17.14%
Revenue Next Year15.5%
Revenue Next 2Y14.9%
Revenue Next 3Y14.65%
Revenue Next 5Y13.76%
EBIT growth 1Y-4.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year287.97%
EBIT Next 3Y73.61%
EBIT Next 5Y47.96%
FCF growth 1Y-94.54%
FCF growth 3Y-15.72%
FCF growth 5YN/A
OCF growth 1Y-90.68%
OCF growth 3Y-5.85%
OCF growth 5Y146.37%