ZDZD
US • —
$52.93
P/E
47.12
PEG
—
FCF Yield
—
Rev Growth YoY
-1.8% YoY
Gross Margin
85.3%
Health Score
6/10
D/E Ratio
0.49
Confidence
LOW
Business Snapshot
Ziff Davis (ZD) provides technology and digital media products and services. The company operates through business segments including digital advertising, cybersecurity, and martech, generating revenue from subscription-based software and media properties. Ziff Davis operates in competitive markets for online content and digital security solutions, holding a position as a niche player with established brands in tech publishing. Key segments include internet security software and cloud-based marketing services, with a large user base across its portfolio of digital properties.
Financial Health
Gross margin stands at a very high 85.3%, indicating strong pricing power and a low cost of revenue base, though a prior-year comparison is not available to assess trend direction. Net margin is a thin 3.3%, suggesting that operating expenses and other costs consume most of the high gross profit...
Risk Assessment
- VALUATION — P/E of 47.12x trades at a very large premium to the sector average of 22x, implying elevated investor expectations.
- EARNINGS QUALITY — Earnings estimates were beaten in only 1 out of the last 4 quarters, pointing to low management guidance credibility.
- REVENUE DECELERATION — Revenue declined by 1.8% year-over-year, a contractionary signal for a company priced for growth.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow is negative or unavailable, preventing a DCF calculation and raising a potential red flag for cash generation....
Gross margin stands at a very high 85.3%, indicating strong pricing power and a low cost of revenue base, though a prior-year comparison is not available to assess trend direction. Net margin is a thin 3.3%, suggesting that operating expenses and other costs consume most of the high gross profit. The balance sheet is conservatively financed with a debt-to-equity ratio of 0.49x and a current ratio of 1.27x, providing adequate short-term liquidity and manageable leverage. Free cash flow data is unavailable, preventing a direct assessment of cash generation or burn. Overall, the company has a healthy asset-light gross margin profile and conservative debt, but weak net margins and opaque cash flow limit the picture of financial strength for a potential dividend or reinvestment capacity.
- VALUATION — P/E of 47.12x trades at a very large premium to the sector average of 22x, implying elevated investor expectations. - EARNINGS QUALITY — Earnings estimates were beaten in only 1 out of the last 4 quarters, pointing to low management guidance credibility. - REVENUE DECELERATION — Revenue declined by 1.8% year-over-year, a contractionary signal for a company priced for growth. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow is negative or unavailable, preventing a DCF calculation and raising a potential red flag for cash generation.
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