ZipRecruiter, Inc. Fundamental Analysis (NYSE: ZIP)
ZipRecruiter, Inc. Fundamental Analysis (NYSE: ZIP)
ZipRecruiter, Inc. (NYSE: ZIP) shows weak financial fundamentals with a PE ratio of 13.50, profit margin of 6.20%, and ROE of -41.38%. The company generates $0.5B in annual revenue with weak year-over-year growth of -5.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.6/100 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 ZIP's fundamental strength across five key dimensions:
Efficiency Score
WeakZIP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentZIP trades at attractive valuation levels.
Growth Score
WeakZIP faces weak or negative growth trends.
Financial Health Score
ExcellentZIP maintains a strong and stable balance sheet.
Profitability Score
WeakZIP struggles to sustain strong margins.
Key Financial Metrics
Is ZIP Expensive or Cheap?
P/E Ratio
ZIP trades at 13.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ZIP's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values ZipRecruiter, Inc. at -11.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.07 times EBITDA. This is generally considered low.
How Well Does ZIP Make Money?
Net Profit Margin
For every $100 in sales, ZipRecruiter, Inc. keeps $6.20 as profit after all expenses.
Operating Margin
Core operations generate 0.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-41.38 in profit for every $100 of shareholder equity.
ROA
ZipRecruiter, Inc. generates $8.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ZipRecruiter, Inc. generates limited operating cash flow of $23.50M, signaling weaker underlying cash strength.
Free Cash Flow
ZipRecruiter, Inc. produces free cash flow of $14.60M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
ZIP converts 3.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
-11.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-7.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.41
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How ZIP Stacks Against Its Sector Peers
| Metric | ZIP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.50 | 30.97 | Better (Cheaper) |
| ROE | -41.38% | 1108.00% | Weak |
| Net Margin | 6.20% | -21241.00% (disorted) | Weak |
| Debt/Equity | -7.84 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 3.03 | 21.73 | Strong Liquidity |
| ROA | 8.72% | -1325740.00% (disorted) | Weak |
ZIP outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ZipRecruiter, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.39%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-146.57%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-84.88%
Industry Style: Cyclical, Value, Infrastructure
Declining