Zillow Group, Inc. Class C
Zillow Group, Inc. Class C Fundamental Analysis
Zillow Group, Inc. Class C (Z) shows weak financial fundamentals with a PE ratio of 475.69, profit margin of 0.89%, and ROE of 0.47%. The company generates $2.6B in annual revenue with strong year-over-year growth of 14.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze Z's fundamental strength across five key dimensions:
Efficiency Score
WeakZ struggles to generate sufficient returns from assets.
Valuation Score
WeakZ trades at a premium to fair value.
Growth Score
ExcellentZ delivers strong and consistent growth momentum.
Financial Health Score
ExcellentZ maintains a strong and stable balance sheet.
Profitability Score
ModerateZ maintains healthy but balanced margins.
Key Financial Metrics
Is Z Expensive or Cheap?
P/E Ratio
Z trades at 475.69 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, Z's PEG of 2.83 indicates potential overvaluation.
Price to Book
The market values Zillow Group, Inc. Class C at 2.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 50.72 times EBITDA. This signals the market has high growth expectations.
How Well Does Z Make Money?
Net Profit Margin
For every $100 in sales, Zillow Group, Inc. Class C keeps $0.89 as profit after all expenses.
Operating Margin
Core operations generate -1.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.47 in profit for every $100 of shareholder equity.
ROA
Zillow Group, Inc. Class C generates $0.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zillow Group, Inc. Class C produces operating cash flow of $367.99M, showing steady but balanced cash generation.
Free Cash Flow
Zillow Group, Inc. Class C produces free cash flow of $227.00M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.94 in free cash annually.
FCF Yield
Z converts 2.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
475.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How Z Stacks Against Its Sector Peers
| Metric | Z Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 475.69 | 21.66 | Worse (Expensive) |
| ROE | 0.47% | 1190.00% | Weak |
| Net Margin | 0.89% | -55754.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 3.13 | 1.59 | Strong Liquidity |
| ROA | 0.40% | -202359.00% (disorted) | Weak |
Z outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zillow Group, Inc. Class C's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-28.12%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
67.66%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
161.64%
Industry Style: Growth, Technology, Streaming
High Growth