Ziff Davis (ZD) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: N/A
• Average Volume (3M): 591.20K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 1.46
• Revenue Growth: 5.94%
• EPS Growth: -8.89%
• Country: US
• Employees: 3,800
• Sector: Communication Services
• Sector Strength: 96
• Industry: Advertising Agencies
• EPS (TTM): 1.24
• Shares Outstanding: 41,002,903
• 10 Day Avg. Volume: 385,526
• 30 Day Avg. Volume: 591,195
• 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: 1.14
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 1.44
• Enterprise Value/Ebitda: 5.07
• 1Y Price Target: $45.50
• Price Target Upside: 20.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: $41.00 ▲(8.84% Upside)

Ziff Davis receives a solid score of 74, driven by strong earnings call performance and positive technical indicators. The company's financial performance is stable, with notable cash flow growth, but operational efficiency challenges remain. The valuation is moderate, with room for improvement in profitability and cost management.

Positive Factors

Revenue Growth

Strong revenue growth, particularly in the Connectivity and Health & Wellness segments, indicates robust market demand and effective business strategies, supporting long-term expansion.

Cash Flow Management

Strong free cash flow growth reflects efficient cash management, providing the company with flexibility for investments, acquisitions, and shareholder returns, enhancing long-term financial stability.

Segment Performance

The significant growth in the Health & Wellness segment, driven by successful initiatives, underscores the company's ability to capitalize on industry trends and expand its market presence.

Negative Factors

Declining Profit Margins

The sharp decline in gross profit margins suggests challenges in cost management, which could impact profitability and necessitate strategic adjustments to maintain competitive advantage.

Operational Efficiency

Reduced operational efficiency, as indicated by declining EBIT and EBITDA margins, may hinder the company's ability to sustain profitability, requiring focus on improving operational processes.

Cybersecurity & Martech Segment

A decline in the Cybersecurity & Martech segment highlights potential vulnerabilities in these areas, which could affect future growth if not addressed effectively.

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: Neutral
• Last Price: 37.67
• 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 Neutral. The current price of 37.67 is above the 20-day moving average (MA) of 37.34, above the 50-day MA of 34.30, and below the 200-day MA of 40.97, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 56.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZD.

Ziff Davis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IAS	79 Outperform	$1.41B	25.25	5.52%	―	14.39%	1946.11%
CRTO	75 Outperform	$1.31B	9.49	12.79%	―	-0.40%	36.44%
ZD	74 Outperform	$1.50B	25.19	3.56%	―	5.94%	-8.89%
MGNI	72 Outperform	$3.40B	84.99	5.82%	―	5.52%	―
STGW	71 Outperform	$1.39B	612.50	-0.32%	―	9.56%	―
QNST	66 Neutral	$938.97M	207.65	2.04%	―	78.27%	―
Sector *	60 Neutral	$47.27B	4.45	-11.27%	4.14%	1.88%	-40.90%

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.

Ziff Davis Reports Strong Q2 2025 Revenue Growth

On August 6, 2025, Ziff Davis reported its second quarter financial results for 2025, highlighting a 9.8% increase in quarterly revenues to $352.2 million compared to the previous year. Despite a decrease in net income, the company achieved its strongest revenue growth since 2021, driven by its Connectivity and Health & Wellness segments. The company also reaffirmed its guidance for the fiscal year 2025, indicating confidence in its ongoing operations and market positioning.