ZDCAUTIOUS

ZD Return on Equity (ROE) Analysis

2.1%

Higher than 27% of Communication Services sector peers

Updated 310h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity — a 2.1% ROE means ZD earns $0.021 for every $1 of equity.

Sector Performance

27th percentile

2.1%

Sector Median

14.7%

Sector Avg

18.3%

Prior Period

2.7%(May 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity — a 2.1% ROE means ZD earns $0.021 for every $1 of equity.

That is far below the sector median of 14.7%, landing ZD in the 27th percentile among Communication Services peers, indicating weaker profitability relative to competitors. Year-over-year change is not available, but the most recent quarter shows a 22.2% decline from the prior quarter (2.7% down to 2.1%). The combination of a low ROE level and a sharp quarterly drop signals deteriorating efficiency in using shareholder capital, which raises investment risk. This metric directly supports the overall CAUTIOUS verdict, as the poor level and negative trajectory both point to below-average financial performance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ZD?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ZD's Return on Equity (ROE) compare to its sector?

ZD's Return on Equity (ROE) of 2.1% compares to a Communication Services sector median of 14.7%, placing it in the 27th percentile.

Who are ZD's closest peers by Return on Equity (ROE)?

The closest Communication Services peers by Return on Equity (ROE) include: DIS (11.0%), T (18.4%), DASH (9.9%), YELP (20.4%), PINS (8.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.