ZD Return on Equity (ROE) Analysis

At -1.5%, ZD's return on equity (ROE, the profit generated per dollar of shareholder equity) sits in a loss-making position, meaning the company is destroying rather than creating value for equity holders on this basis.

This places it far below the sector median of 13.2%, with the stock landing in the 17th percentile of its peer group, indicating most comparable companies are delivering substantially better returns. The trend is sharply deteriorating: ROE fell from a positive 2.1% to a negative -1.5% quarter-over-quarter, a drop of -171.4%, while the year-over-year change and eight-quarter history are unavailable for confirmation. The combination of a level far under the sector norm and a steep quarterly swing into negative territory points to increased operational or financial strain, elevating risk for investors rather than offering a margin of safety. This metric contradicts any bullish thesis and directly supports the CAUTIOUS overall verdict.

Frequently Asked Questions