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 146.08, profit margin of 2.27%, and ROE of 1.28%. The company generates $2.7B in annual revenue with strong year-over-year growth of 15.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
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
ModerateZ shows balanced valuation metrics.
Growth Score
ModerateZ shows steady but slowing expansion.
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 146.08 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, Z's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Zillow Group, Inc. Class C at 2.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 27.45 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 $2.27 as profit after all expenses.
Operating Margin
Core operations generate 0.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.28 in profit for every $100 of shareholder equity.
ROA
Zillow Group, Inc. Class C generates $1.17 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 $471.05M, showing steady but balanced cash generation.
Free Cash Flow
Zillow Group, Inc. Class C generates strong free cash flow of $439.44M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.83 in free cash annually.
FCF Yield
Z converts 4.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
146.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.002
vs 25 benchmark
How Z Stacks Against Its Sector Peers
| Metric | Z Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 146.08 | 23.90 | Worse (Expensive) |
| ROE | 1.28% | 1020.00% | Weak |
| Net Margin | 2.27% | -59468.00% (disorted) | Weak |
| Debt/Equity | 0.10 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.29 | 1.69 | Strong Liquidity |
| ROA | 1.17% | -6587.00% (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
47.16%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
113.14%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-19.73%
Industry Style: Growth, Technology, Streaming
Declining