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 (3.1/5)
Our Zillow stock opinion is based on fundamentals of the company. This Zillow stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy ZG stock?
- Zillow sales grew by 32.2% year on year in 2017 Q1.
- Revenue growth has been tremendous with a compounded annual growth of 63.5% over the last 5 years.
- With a debt/equity ratio of 0.15, Zillow is comparatively less leveraged than its peers in the Computer and Technology sector.
- When compared with the Internet Services industry average PS ratio of 2.8, the price-to-sales ratio of 9 for ZG stock is attractive.
- The company has a good Free Cash Flow (FCF) margin of 21.5%.
Should you sell ZG stock?
- Zillow registered a negative operating margin of -15.9% (average) over the Trailing Twelve Months (TTM).
- Over the last 12 months, Zillow had an average Net loss of -19.6%.
- The company does not have profits. Hence the PE ratio is meaningless for ZG stock.
- Zillow's negative ROIC of -3.9% indicates operational inefficiency.
- Zillow has a negative return on equity of -6.9%. This indicates that the firm is inefficient at generating profits.