Zillow Stock Analysis (NASDAQ:ZG)

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$34.88 $0.04 (0.11%) ZG stock closing price Mar 22, 2017 (Closing)
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Zillow
Updated on : Mar 22, 2017
previous close
ZG 34.9 (0%)
NASDAQ 5821.6 (0%)
Closing Price On: Mar 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
66.6%
Operating Profit
Operating Margin:
-22.8%
Sector Average:
2.7%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
367.4M
Debt/Equity Ratio:
 0.15
Compared to the industry
Cash Flow
Operating cash flow:
$39.1M
Net Income:
-$23.5M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
ZG PS :
7.5
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-5.3%
Return on Equity:
-8.5%
Free Cash Flow Margin:
10%
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Zillow Analysis Video

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View Zillow stock analysis video. This is our ZG analyst opinion covering the buy and sell arguments for ZG stock.

Zillow Group, Inc. Stock Rating (2.3/5)

Our Zillow stock opinion is based on fundamentals of the company. This Zillow stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy ZG stock?

  • Zillow sales grew by 34.4% year on year in 2016 Q4.
  • Revenue growth has been tremendous with a compounded annual growth of 66.6% over the last 5 years.

Should you sell ZG stock?

  • Zillow registered a negative operating margin of -22.8% (average) over the Trailing Twelve Months (TTM).
  • Zillow posted an average Net loss of -26% in the last twelve months.
  • With a debt/equity ratio of  0.15, Zillow is highly leveraged in comparison to Computer and Technology peers.
  • The lack of profits renders the PE ratio useless for ZG stock.
  • The company is trading at a price to sales multiple of 7.5, which is overvalued in comparison to the Internet Services industry average multiple of 2.6.
  • Zillow's negative ROIC of -5.3% indicates operational inefficiency.
  • A negative ROE of -8.5% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Zillow stock

arnulacroix22 on Zillow stock analysis ($106.5)
bullish
Keep a close eye on Zillow, Inc. (Z) stock. The company expects to close the acquisition of Trulia as early as February 17, 2015. Zillow posted record revenue, record mobile usage and record Premier Agent advertiser revenue for 2014. Check this out http://finance.crwe-pr.com/2015/02/14/zi...
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