Ziff Davis (ZD) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: N/A
• Average Volume (3M): 603.60K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.35
• Revenue Growth: 3.24%
• EPS Growth: 36.80%
• Country: US
• Employees: 3,800
• Sector: Communication Services
• Sector Strength: 86
• Industry: Advertising Agencies
• EPS (TTM): 1.14
• Shares Outstanding: 42,087,574
• 10 Day Avg. Volume: 635,754
• 30 Day Avg. Volume: 603,595
• PEG Ratio: 5.51
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.68
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.48
• Enterprise Value/Ebitda: 1.23
• 1Y Price Target: $42.43
• Price Target Upside: 37.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: $34.00 ▲( 10.03% Upside)

Ziff Davis, Inc. scores a 68 due to strong financial performance and a positive outlook for future growth, bolstered by robust cash flow and effective cost management. However, the bearish technical indicators and moderate valuation concerns temper enthusiasm. While earnings guidance is optimistic, recent segment challenges and the broader market sentiment warrant caution.

Positive Factors

Market Stability

Ziff Davis operates through macroeconomic challenges with little impact on its advertising businesses and no disruption to its M&A pipeline.

Revenue Growth

Management expects accelerating total revenue growth, driven by improvements across multiple business lines.

Negative Factors

Advertising Growth

The FY25 advertising growth guidance was approximately 200 basis points below market expectations at the midpoint.

Organic Revenue

Organic total revenue remains negative, with the B2B business being a primary drag due to a focus on improving profitability.

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, Inc. generates revenue through a variety of channels, primarily driven by digital advertising, subscriptions, and e-commerce. Its digital advertising revenue comes from display ads, video ads, and affiliate marketing on its owned and operated websites. The company also earns money from subscription services offered by certain brands, providing premium content and features to subscribers. Additionally, Ziff Davis leverages e-commerce by selling products directly through its platforms or earning commissions through affiliate links. Strategic partnerships and acquisitions further enhance its revenue streams by expanding its reach and diversifying its offerings.

Ziff Davis Financial Statement Overview

Summary

Ziff Davis, Inc. demonstrates a solid financial position with robust cash flow and improved net income. While leverage has been reduced, it remains a risk factor. Strength in cash generation and effective cost management enhance the company's financial stability, positioning it well for future growth despite fluctuations in operational margins.

Income Statement

Ziff Davis, Inc. has shown consistent revenue with a slight decrease in recent years. The gross profit margin is strong, and net income has improved significantly from 2023 to 2024, indicating better cost management or revenue streams. However, EBIT and EBITDA margins have fluctuated, suggesting some instability in operational efficiency.

Balance Sheet

The company maintains a healthy equity ratio, suggesting solid asset management. The debt-to-equity ratio has improved, indicating better leverage management over time. However, total debt remains substantial compared to equity, posing potential risks if earnings do not sustain growth.

Cash Flow

Operating cash flow has shown a positive trend, reflecting strong cash generation capabilities. Free cash flow has also grown, highlighting efficient capital expenditure management. The operating cash flow to net income ratio is favorable, suggesting strong cash earnings quality.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.40B	1.36B	1.39B	1.42B	1.49B
	Gross Profit
1.20B	1.17B	1.20B	1.23B	1.26B
	EBIT
113.65M	132.61M	198.94M	166.43M	334.61M
	EBITDA
319.10M	353.54M	411.81M	683.16M	380.96M
	Net Income Common Stockholders
63.05M	41.50M	63.76M	351.70M	150.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
505.88M	764.72M	711.21M	924.04M	243.31M
	Total Assets
3.70B	3.47B	3.53B	3.76B	3.67B
	Total Debt
864.28M	1.00B	1.06B	1.17B	1.71B
	Net Debt
358.40M	263.70M	402.41M	476.65M	1.47B
	Total Liabilities
1.89B	1.58B	1.64B	1.80B	2.45B
	Stockholders Equity
1.81B	1.89B	1.89B	1.96B	1.21B
Cash Flow		Free Cash Flow
283.68M	211.23M	230.24M	401.75M	384.41M
	Operating Cash Flow
390.31M	319.96M	336.44M	515.57M	480.08M
	Investing Cash Flow
-297.45M	-127.41M	-220.77M	59.09M	-586.22M
	Financing Cash Flow
-320.99M	-114.79M	-140.83M	-113.59M	-234.63M

Ziff Davis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZD, the sentiment is Negative. The current price of 30.9 is below the 20-day moving average (MA) of 31.85, below the 50-day MA of 34.31, and below the 200-day MA of 46.19, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 15.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZD.

Ziff Davis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGNI	74 Outperform	$2.20B	78.67	4.30%	―	5.59%	―
IAS	74 Outperform	$1.29B	27.61	4.80%	―	13.84%	1494.51%
CRTO	69 Neutral	$1.41B	10.72	13.46%	―	-1.18%	100.33%
ZD	68 Neutral	$1.30B	19.31	4.12%	―	3.24%	36.80%
STGW	63 Neutral	$1.26B	923.53	0.19%	―	9.86%	―
QNST	62 Neutral	$849.72M	―	-0.29%	―	88.81%	99.16%
Sector *	60 Neutral	$14.12B	6.43	-3.57%	3.69%	2.49%	-35.43%

Ziff Davis Corporate Events

Ziff Davis to Join J.P. Morgan Conference

On May 14, 2025, Ziff Davis, Inc. will participate in the J.P. Morgan 53rd Annual Global Technology, Media and Communications Conference, which will be webcast online.

The most recent analyst rating on (ZD) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Ziff Davis stock, see the ZD Stock Forecast page.

Ziff Davis Announces Segment Realignment After Annual Meeting

On May 7, 2025, Ziff Davis held its Annual Meeting of Stockholders virtually, where all eight director nominees were elected, and key proposals, including the ratification of KPMG LLP as auditors and executive compensation, were approved. Additionally, the company announced a realignment of its operating segments into five categories, which include Technology & Shopping, Gaming & Entertainment, Health & Wellness, Connectivity, and Cybersecurity & Martech, reflecting changes in internal reporting and aiming to enhance operational focus.

Ziff Davis Reports Q1 2025 Financial Results

Ziff Davis reported its unaudited financial results for the first quarter of 2025, showing a 4.5% increase in revenues to $328.6 million compared to the same period in 2024. Despite a decrease in income from operations and adjusted EBITDA, net income saw a significant rise of 128.1% to $24.2 million. The company remains optimistic about its prospects for the year, driven by accelerating revenue growth, a healthy M&A cadence, and an active share buyback program.

Ziff Davis Reports Q4 2024 Financial Results

Ziff Davis, Inc. reported its unaudited financial results for the fourth quarter and full year of 2024, showing a revenue increase of 5.9% for the quarter and 2.8% for the year. Despite a decrease in income from operations due to goodwill impairments, the company experienced growth in net income and adjusted EBITDA, and introduced a new segment reporting structure to enhance investor understanding.