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 (2.9/5)
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's revenue growth came in at 34.4% in 2016 Q4.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 66.6%.
- ZG stock is trading at a favorable price to sales multiple of 8.4 as against the Internet Services industry average multiple of 2.7.
Should you sell ZG stock?
- Over the last twelve months, Zillow posted an average operating loss margin of -22.8%.
- Over the last 12 months, Zillow had an average Net loss of -26%.
- The company does not have profits. Hence the PE ratio is meaningless for ZG stock.
- The company has a negative Return on Invested Capital of -5.3%, which is a red flag.
- Zillow has a negative ROE (Return On Equity) of -8.5%, indicating the company is not profitable.