Zillow Stock Analysis (NASDAQ:ZG)
Zillow Analysis Video
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.