Zillow Group Class C (Z) AI Stock Analysis

• Market Cap: $16.57B
• Dividend Yield: N/A
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 15.17%
• EPS Growth: 75.90%
• Country: US
• Employees: 6,819
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.44
• Shares Outstanding: 186,200,150
• 10 Day Avg. Volume: 3,085,429
• 30 Day Avg. Volume: 2,911,513
• PEG Ratio: 5.26
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 7.75
• P/FCF Ratio: 60.82
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 7.54
• Enterprise Value/Gross Profit: 10.07
• Enterprise Value/Ebitda: 69.06
• 1Y Price Target: $85.87
• Price Target Upside: 24.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $78.00 ▲(13.37% Upside)

Zillow's overall stock score reflects its mixed financial performance and challenging valuation, offset by strong earnings call results. The company's strategic focus on innovation and growth in Rentals and Mortgages segments is promising, but profitability issues and technical indicators suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Innovation in AI and Technology

Innovative technology adoption positions Zillow as a leader in digital real estate solutions, potentially driving future growth and competitive advantage.

Rentals Revenue Surge

Strong growth in the Rentals segment suggests robust demand and effective market penetration, supporting sustained revenue expansion.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder reinvestment and growth, impacting long-term financial health and shareholder value.

Free Cash Flow Decline

Declining free cash flow may restrict the company's ability to fund operations and strategic initiatives, affecting future growth potential.

Challenging Housing Market Conditions

Persistent market challenges could limit growth opportunities and pressure financial performance, affecting long-term strategic objectives.

Zillow Group Class C Business Overview & Revenue Model

Company Description

Zillow Group, Inc., a digital real estate company, operates real estate brands on mobile applications and Websites in the United States. The company operates through three segments: Homes; Internet, Media & Technology; and Mortgages. The Homes segment is involved in resale of homes; and title and escrow services to home buyers and sellers, including title search procedures for title insurance policies, escrow, and other closing services. The IMT segment offers premier agent, rentals, and new construction marketplaces, as well as dotloop, display, and other advertising, as well as business software solutions. The Mortgage segment provides home loans; and marketing products including custom quote and connect services. Its portfolio of brands includes Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads, and Out East. The company was incorporated in 2004 and is headquartered in Seattle, Washington.

How the Company Makes Money

Zillow Group generates revenue through multiple key streams. Primarily, it earns money through its Zillow Offers program, where it purchases homes directly from sellers, makes necessary repairs, and then resells them, capturing the profit margin. Additionally, the company earns revenue from advertising services provided to real estate agents and property managers, who pay to promote their listings on the Zillow platform. Zillow also offers rental listings and charges landlords for premium placement of their properties. Significant partnerships with real estate agents and brokerages, along with its expansive user base, further contribute to its earnings, allowing Zillow to monetize its extensive traffic effectively.

Zillow Group Class C Financial Statement Overview

Summary

Zillow Group shows mixed financial performance. Revenue growth is positive at 3.98%, but profitability is challenged with negative net income and EBIT margins. The balance sheet is strong with low leverage, but negative return on equity is concerning. Cash flow generation is adequate, though recent declines in free cash flow warrant attention.

Income Statement

Zillow Group's revenue has shown a modest growth of 3.98% in the TTM, indicating a positive trajectory. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at 74.87%, but the negative EBIT and net profit margins highlight ongoing operational challenges.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio of 0.019 in the TTM, reflecting financial stability. However, the negative return on equity indicates that the company is not generating profit from its equity base, which is a concern for investors.

Cash Flow

Zillow Group's cash flow performance is mixed. The operating cash flow to net income ratio is healthy at 0.72, suggesting good cash generation relative to net income. However, the free cash flow has decreased by 22.51% in the TTM, indicating potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.48B	2.24B	1.95B	1.96B	8.15B	3.34B
Gross Profit	1.86B	1.71B	1.52B	1.59B	1.75B	1.58B
EBITDA	271.00M	198.00M	125.00M	123.00M	370.00M	119.96M
Net Income	-32.00M	-112.00M	-158.00M	-88.00M	-527.78M	-162.12M
Balance Sheet
Total Assets	5.70B	5.83B	6.65B	6.56B	10.70B	7.49B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.86B	2.81B	3.36B	2.83B	3.92B
Total Debt	367.00M	660.00M	1.83B	1.87B	1.60B	2.52B
Total Liabilities	706.00M	981.00M	2.13B	2.08B	5.35B	2.74B
Stockholders Equity	4.99B	4.85B	4.53B	4.48B	5.34B	4.74B
Cash Flow
Free Cash Flow	272.00M	285.00M	189.00M	4.36B	-3.28B	315.68M
Operating Cash Flow	418.00M	428.00M	354.00M	4.50B	-3.18B	424.20M
Investing Cash Flow	318.00M	395.00M	25.00M	-1.53B	1.09B	-1.04B
Financing Cash Flow	-932.00M	-1.23B	-352.00M	-4.34B	3.15B	1.16B

Zillow Group Class C Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For Z, the sentiment is Negative. The current price of 68.8 is below the 20-day moving average (MA) of 73.98, below the 50-day MA of 77.25, and below the 200-day MA of 74.80, indicating a bearish trend. The MACD of -1.50 indicates Positive momentum. The RSI at 34.85 is Neutral, neither overbought nor oversold. The STOCH value of 13.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for Z.

Zillow Group Class C Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARG	68 Neutral	$3.39B	24.07	35.39%	―	4.21%	―
ZG	62 Neutral	$16.57B	―	-0.66%	―	15.17%	75.90%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
Z	59 Neutral	$16.57B	―	-0.66%	―	15.17%	75.90%
NXDR	51 Neutral	$650.90M	―	-14.07%	―	6.65%	50.32%
NBIS	50 Neutral	$20.81B	91.13	3.45%	―	-87.55%	336.73%
IAC	46 Neutral	$2.57B	―	-4.58%	―	-29.40%	-529.81%

Zillow Group Class C Corporate Events

Zillow Group’s Strong Q3 2025 Financial Performance

Zillow Group, Inc. is a leading real estate technology company that provides digital solutions to simplify the process of buying, selling, renting, and financing homes in the United States. Known for its popular real estate app and website, Zillow aims to enhance consumer experiences through innovative products and services.

Zillow Group Surges Ahead with Strong Q2 Earnings

Zillow Group’s latest earnings call paints a largely positive picture of the company’s financial health and strategic direction. The company reported strong revenue growth and positive net income, driven by significant performance in the rentals and mortgage segments. Despite facing a challenging housing market and increased variable expenses, Zillow continues to expand its market share and enhance its product offerings, which has contributed to the positive sentiment expressed during the call.

Zillow Group Reports Strong Q2 2025 Growth

Zillow Group Inc Class C is a leading real estate technology company that provides a comprehensive suite of digital tools and services for buying, selling, renting, and financing homes in the United States. Known for its innovative housing super app, Zillow aims to streamline real estate transactions for consumers and professionals alike.