Ziff Davis, Inc. Fundamental Analysis (NASDAQ: ZD)
Ziff Davis, Inc. Fundamental Analysis (NASDAQ: ZD)
Ziff Davis, Inc. (NASDAQ: ZD) shows strong financial fundamentals with a PE ratio of 3.14, profit margin of 48.57%, and ROE of 34.27%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 3.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ZD's fundamental strength across five key dimensions:
Efficiency Score
ExcellentZD demonstrates superior asset utilization.
Valuation Score
ExcellentZD trades at attractive valuation levels.
Growth Score
WeakZD faces weak or negative growth trends.
Financial Health Score
ExcellentZD maintains a strong and stable balance sheet.
Profitability Score
ExcellentZD achieves industry-leading margins.
Key Financial Metrics
Is ZD Expensive or Cheap?
P/E Ratio
ZD trades at 3.14 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ZD's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Ziff Davis, Inc. at 0.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.73 times EBITDA. This signals the market has high growth expectations.
How Well Does ZD Make Money?
Net Profit Margin
For every $100 in sales, Ziff Davis, Inc. keeps $48.57 as profit after all expenses.
Operating Margin
Core operations generate 6.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $34.27 in profit for every $100 of shareholder equity.
ROA
Ziff Davis, Inc. generates $16.10 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 $453.89M, reflecting robust business health.
Free Cash Flow
Ziff Davis, Inc. generates strong free cash flow of $320.68M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.71 in free cash annually.
FCF Yield
ZD converts 15.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How ZD Stacks Against Its Sector Peers
| Metric | ZD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.14 | 19.53 | Better (Cheaper) |
| ROE | 34.27% | 597.00% | Weak |
| Net Margin | 48.57% | 492.00% | Weak |
| Debt/Equity | 0.39 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 2.16 | 1.89 | Strong Liquidity |
| ROA | 16.10% | 310.00% | Weak |
ZD outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
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
41.53%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-64.48%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-4.18%
Industry Style: Growth, Technology, Streaming
Declining