Ziff Davis, Inc.
Ziff Davis, Inc. Fundamental Analysis
Ziff Davis, Inc. (ZD) shows weak financial fundamentals with a PE ratio of 32.74, profit margin of 3.26%, and ROE of 2.62%. The company generates $1.5B in annual revenue with weak year-over-year growth of 2.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ZD's fundamental strength across five key dimensions:
Efficiency Score
WeakZD struggles to generate sufficient returns from assets.
Valuation Score
ModerateZD shows balanced valuation metrics.
Growth Score
ModerateZD shows steady but slowing expansion.
Financial Health Score
ExcellentZD maintains a strong and stable balance sheet.
Profitability Score
ModerateZD maintains healthy but balanced margins.
Key Financial Metrics
Is ZD Expensive or Cheap?
P/E Ratio
ZD trades at 32.74 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ZD's PEG of -0.57 indicates potential undervaluation.
Price to Book
The market values Ziff Davis, Inc. at 0.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.76 times EBITDA. This is generally considered low.
How Well Does ZD Make Money?
Net Profit Margin
For every $100 in sales, Ziff Davis, Inc. keeps $3.26 as profit after all expenses.
Operating Margin
Core operations generate 13.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.62 in profit for every $100 of shareholder equity.
ROA
Ziff Davis, Inc. generates $1.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ziff Davis, Inc. generates strong operating cash flow of $411.26M, reflecting robust business health.
Free Cash Flow
Ziff Davis, Inc. generates strong free cash flow of $290.84M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.36 in free cash annually.
FCF Yield
ZD converts 18.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ZD Stacks Against Its Sector Peers
| Metric | ZD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.74 | 23.32 | Worse (Expensive) |
| ROE | 2.62% | 1104.00% | Weak |
| Net Margin | 3.26% | -55937.00% (disorted) | Weak |
| Debt/Equity | 0.51 | 1.38 | Strong (Low Leverage) |
| Current Ratio | 1.27 | 1.56 | Neutral |
| ROA | 1.29% | -45352.00% (disorted) | Weak |
ZD outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ziff Davis, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.49%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
-69.12%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
1.40%
Industry Style: Growth, Technology, Streaming
Growing