Ziff Davis (ZD) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: N/A
• Average Volume (3M): 579.86K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.45
• Revenue Growth: 5.94%
• EPS Growth: -8.89%
• Country: US
• Employees: 3,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 1.24
• Shares Outstanding: 41,002,903
• 10 Day Avg. Volume: 520,379
• 30 Day Avg. Volume: 579,860
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 1.44
• Enterprise Value/Ebitda: 5.07
• 1Y Price Target: $46.40
• Price Target Upside: 21.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $43.00 ▲(12.27% Upside)

Ziff Davis receives a solid score due to strong earnings call performance and positive technical indicators. Financial performance is stable but faces challenges with declining profit margins. The valuation is fair, though the lack of a dividend yield is a drawback. Overall, the company's strategic initiatives and growth in key segments contribute positively to its outlook.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly in key segments like Health & Wellness and Connectivity, indicates strong market demand and effective business strategies, supporting long-term expansion.

Cash Flow Management

Strong free cash flow growth reflects efficient cash management and operational effectiveness, providing the company with flexibility for investments and acquisitions.

Segment Performance

Significant growth in Health & Wellness and Connectivity segments highlights successful strategic initiatives, enhancing competitive positioning and future growth potential.

Negative Factors

Declining Profit Margins

A significant drop in gross profit margins suggests challenges in cost management, potentially impacting profitability and requiring strategic adjustments to sustain margins.

Operational Efficiency

Declining EBIT and EBITDA margins indicate potential inefficiencies in operations, which could hinder long-term profitability unless addressed through improved cost management.

Low Return on Equity

A low return on equity reflects limited profitability from shareholder investments, suggesting the need for enhanced operational strategies to improve financial returns.

Ziff Davis Business Overview & Revenue Model

Company Description

Ziff Davis, Inc., together with its subsidiaries, provides internet information and services in the United States, Canada, Ireland, and internationally. It operates in two segments, Digital Media, and Cybersecurity and Martech. The Digital Media segment operates a portfolio of web properties and apps, which include IGN, RetailMeNot, Mashable, PCMag, Humble Bundle, Speedtest, Offers, Black Friday, MedPageToday, Everyday Health, BabyCenter, and What to Expect, among others in the technology, shopping, entertainment, and health and wellness markets. The Cybersecurity and Martech segment offers cloud-based subscription services to consumers and businesses, including cybersecurity, privacy, and marketing technology. The company was formerly known as j2 Global, Inc. and changed its name to Ziff Davis, Inc. in October 2021. Ziff Davis, Inc. was incorporated in 2014 and is headquartered in New York, New York.

How the Company Makes Money

Ziff Davis generates revenue through multiple streams, primarily focusing on digital advertising, affiliate marketing, and subscription services. The company earns money by selling advertising space on its websites, leveraging its extensive audience reach to attract major brands. Additionally, Ziff Davis engages in affiliate marketing, where it earns commissions from product sales generated through its content and recommendations. Subscription services, particularly in the software and technology sectors, also contribute to revenue by providing premium content and tools to users. Significant partnerships with leading tech companies and advertisers enhance its revenue potential, as Ziff Davis continues to expand its influence in the digital landscape.

Ziff Davis Financial Statement Overview

Summary

Ziff Davis demonstrates stable financial health with strong cash flow growth and improved leverage. However, declining profit margins and low return on equity highlight challenges in operational efficiency and profitability. Continued focus on cost management and operational improvements is essential for sustained growth.

Income Statement

Ziff Davis shows moderate revenue growth with a TTM increase of 2.22%. The gross profit margin has decreased significantly from 85.7% in 2024 to 46% in TTM, indicating potential cost management issues. Net profit margin remains stable around 4.5%, but EBIT and EBITDA margins have declined, suggesting reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.47 in TTM, indicating better leverage management. However, return on equity is relatively low at 3.66%, reflecting limited profitability from equity. The equity ratio remains stable, suggesting a balanced asset financing structure.

Cash Flow

Free cash flow growth is strong at 81.3% in TTM, showing improved cash generation. The operating cash flow to net income ratio is 0.49, indicating moderate cash conversion efficiency. Free cash flow to net income ratio is healthy at 0.68, suggesting good cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.45B	1.40B	1.36B	1.39B	1.42B	1.16B
Gross Profit	1.19B	1.20B	1.18B	1.21B	1.23B	980.43M
EBITDA	338.15M	319.10M	331.97M	398.39M	681.68M	363.27M
Net Income	66.09M	63.05M	41.50M	63.76M	496.71M	150.67M
Balance Sheet
Total Assets	3.52B	3.70B	3.47B	3.53B	3.76B	3.67B
Cash, Cash Equivalents and Short-Term Investments	457.26M	505.88M	764.72M	711.21M	924.04M	243.31M
Total Debt	865.38M	894.75M	1.00B	1.06B	1.17B	1.71B
Total Liabilities	1.68B	1.89B	1.58B	1.64B	1.80B	2.45B
Stockholders Equity	1.84B	1.81B	1.89B	1.89B	1.96B	1.21B
Cash Flow
Free Cash Flow	233.13M	283.68M	211.23M	230.24M	401.75M	384.41M
Operating Cash Flow	341.88M	390.31M	319.96M	336.44M	515.57M	480.08M
Investing Cash Flow	-285.92M	-297.45M	-127.41M	-220.77M	59.09M	-586.22M
Financing Cash Flow	-296.12M	-320.99M	-114.79M	-140.83M	-113.59M	-234.63M

Ziff Davis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZD, the sentiment is Positive. The current price of 38.3 is above the 20-day moving average (MA) of 37.81, above the 50-day MA of 35.03, and below the 200-day MA of 40.27, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 73.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZD.

Ziff Davis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IAS	77 Outperform	1.42B	25.46	5.19%	―	14.39%	1946.11%
CRTO	75 Outperform	1.27B	9.19	12.54%	―	-0.40%	36.44%
ZD	73 Outperform	$1.57B	26.36	3.56%	―	5.94%	-8.89%
STGW	71 Outperform	1.32B	458.56	-0.22%	―	9.56%	0.00%
CMPR	64 Neutral	1.53B	105.38	-2.56%	―	3.38%	-91.24%
MNTN	47 Neutral	1.47B	-26.78	-53.64%	―	34.66%	-17.04%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Ziff Davis Corporate Events

Ziff Davis to Participate in Citi’s 2025 TMT Conference

Ziff Davis, Inc. will participate in the Citi’s 2025 Global TMT Conference on September 3, 2025, which will be webcast online. This participation highlights the company’s engagement with industry peers and stakeholders, potentially enhancing its market visibility and influence.

The most recent analyst rating on (ZD) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Ziff Davis stock, see the ZD Stock Forecast page.