Zillow Group Class C (Z) AI Stock Analysis

• Market Cap: $18.55B
• Dividend Yield: N/A
• Average Volume (3M): 3.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: 15.31%
• EPS Growth: 56.19%
• Country: US
• Employees: 6,819
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.40
• Shares Outstanding: 185,964,750
• 10 Day Avg. Volume: 2,403,539
• 30 Day Avg. Volume: 3,062,517
• 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: 0.91
• Enterprise Value/Revenue: 7.03
• Enterprise Value/Gross Profit: 9.28
• Enterprise Value/Ebitda: 71.16
• 1Y Price Target: $85.89
• Price Target Upside: 11.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 67 Neutral
• Price Target: $84.00 ▲(8.57% Upside)

Zillow Group's strong earnings call performance and financial stability are offset by challenges in profitability and valuation. The company's strategic focus on growth segments and technology innovation supports a positive outlook, despite market challenges.

Positive Factors

Revenue Growth

Zillow's robust revenue growth, particularly in Rentals and multifamily segments, underscores its strong market position and potential for continued expansion.

Technological Innovation

Zillow's focus on AI and technology innovation enhances user engagement and operational efficiency, positioning it as a leader in real estate tech.

Cash Flow Management

Strong cash flow management enhances Zillow's financial flexibility, supporting strategic investments and long-term growth initiatives.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder Zillow's ability to generate shareholder value and reinvest in growth opportunities.

Legal Challenges

Legal challenges from the FTC could lead to financial penalties and operational disruptions, impacting Zillow's market strategy.

Rising Expenses

Escalating expenses may pressure margins and limit financial resources for other strategic initiatives, affecting long-term profitability.

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 positive revenue growth and strong cash flow management with a healthy balance sheet. However, challenges remain in achieving profitability, as indicated by negative net income and return on equity.

Income Statement

Zillow Group's revenue has shown a modest growth of 3.6% in the TTM, indicating a positive trend after previous fluctuations. The gross profit margin remains strong at 75.8%, reflecting efficient cost management. However, the company is still facing challenges with profitability, as evidenced by a negative net profit margin of -2.6% and negative EBIT margin. The EBITDA margin is positive at 9.7%, suggesting some operational efficiency improvements.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.07, indicating low leverage and financial stability. However, the return on equity is negative at -1.3%, reflecting ongoing challenges in generating returns for shareholders. The equity ratio is strong, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Zillow Group's cash flow statement highlights a significant improvement in free cash flow growth at 72.1%, indicating better cash management. The operating cash flow to net income ratio is strong at 0.89, showing efficient cash generation relative to net income. The free cash flow to net income ratio of 0.73 further supports the company's ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39B	2.24B	1.95B	1.96B	8.15B	3.34B
Gross Profit	1.81B	1.71B	1.52B	1.59B	1.75B	1.58B
EBITDA	236.00M	198.00M	125.00M	123.00M	370.00M	119.96M
Net Income	-62.00M	-112.00M	-158.00M	-88.00M	-527.78M	-162.12M
Balance Sheet
Total Assets	5.42B	5.83B	6.65B	6.56B	10.70B	7.49B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.86B	2.81B	3.36B	2.83B	3.92B
Total Debt	328.00M	660.00M	1.83B	1.87B	1.60B	2.52B
Total Liabilities	670.00M	981.00M	2.13B	2.08B	5.35B	2.74B
Stockholders Equity	4.75B	4.85B	4.53B	4.48B	5.34B	4.74B
Cash Flow
Free Cash Flow	351.00M	285.00M	189.00M	4.36B	-3.28B	315.68M
Operating Cash Flow	484.00M	428.00M	354.00M	4.50B	-3.18B	424.20M
Investing Cash Flow	627.00M	395.00M	25.00M	-1.53B	1.09B	-1.04B
Financing Cash Flow	-1.70B	-1.23B	-352.00M	-4.34B	3.15B	1.16B

Zillow Group Class C Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For Z, the sentiment is Positive. The current price of 77.37 is above the 20-day moving average (MA) of 74.53, below the 50-day MA of 80.83, and above the 200-day MA of 75.12, indicating a neutral trend. The MACD of -1.31 indicates Negative momentum. The RSI at 53.53 is Neutral, neither overbought nor oversold. The STOCH value of 95.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	71 Outperform	$3.59B	29.17	29.24%	―	4.80%	―
ZG	68 Neutral	$18.58B	-279.43	-1.34%	―	15.31%	56.19%
Z	67 Neutral	$18.55B	―	-1.34%	―	15.31%	56.19%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IAC	54 Neutral	$2.72B	―	-8.49%	―	-23.79%	-138.59%
NBIS	50 Neutral	$26.19B	107.30	4.95%	―	-95.06%	1.92%
NXDR	46 Neutral	$778.39M	―	-14.27%	―	9.65%	56.50%

Zillow Group Class C Corporate Events

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.