Ziff Davis (ZD) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: N/A
• Average Volume (3M): 544.45K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.32
• Revenue Growth: 3.24%
• EPS Growth: 36.80%
• Country: US
• Employees: 3,800
• Sector: Communication Services
• Sector Strength: 71
• Industry: Advertising Agencies
• EPS (TTM): 1.14
• Shares Outstanding: 42,087,574
• 10 Day Avg. Volume: 487,056
• 30 Day Avg. Volume: 544,451
• PEG Ratio: 0.70
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.69
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: 1.30
• 1Y Price Target: $40.80
• Price Target Upside: 31.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $35.00 ▲(12.58%Upside)

Ziff Davis' overall stock score reflects strong financial performance and positive earnings call sentiment, highlighting growth in key segments and effective capital allocation. However, technical indicators reveal a bearish trend, and valuation metrics suggest moderate attractiveness. Notable risks include challenges in the Cybersecurity and Martech segment and legal issues with OpenAI.

Positive Factors

Advertising Business

Ziff Davis is operating with little impact on its advertising businesses, showing resilience in challenging macro conditions.

Revenue Growth

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

Negative Factors

Advertising Growth Guidance

The FY25 advertising growth guide for 4-6% Y/Y was below the Street expectations at the midpoint.

B2B Business Performance

Organic total revenue continues to be negative, with the B2B business being a primary drag due to management's focus on improving profitability.

Ziff Davis Business Overview & Revenue Model

Company Description

Ziff Davis (ZD) is a digital media and internet company that operates in various sectors, including technology, entertainment, shopping, health, and cybersecurity. It offers a wide range of services and products such as publishing digital content, providing software solutions, and operating e-commerce platforms. The company's core brands include PCMag, IGN, Speedtest, and Offers.com, which are well-known for delivering quality content and services in their respective fields.

How the Company Makes Money

Ziff Davis makes money primarily through advertising, subscription, and licensing revenues generated from its portfolio of digital media and internet properties. Advertising revenue is a significant component, derived from display ads, video ads, and sponsored content on its websites and platforms. Subscription services also contribute to its earnings, with customers paying for premium content, software solutions, and tools. Additionally, Ziff Davis earns through e-commerce and affiliate marketing by driving sales and earning commissions from partner retailers. Strategic partnerships and acquisitions further enhance its revenue by expanding its market reach and diversifying its offerings.

Ziff Davis Financial Statement Overview

Summary

Ziff Davis exhibits strong financial performance with consistent revenue growth and robust profitability margins. The balance sheet is solid with a stable equity position and manageable debt levels. Cash flow generation remains strong, despite a slight decrease in free cash flow, indicating a need for prudent capital management.

Income Statement

Ziff Davis shows a steady growth trajectory with a TTM revenue increase to $1.42 billion, up from $1.40 billion in the previous year. The gross profit margin remains strong at approximately 83.9%, and the net profit margin has improved to 5.4% in the TTM period. However, a slight decline in EBIT margin to 8.2% indicates some increased operational costs compared to prior periods.

Balance Sheet

The company's balance sheet reflects a strong equity base with an equity ratio of 51.8%, indicating stable financial health. The debt-to-equity ratio stands at 0.47, showcasing manageable leverage. However, a slight decrease in cash reserves compared to previous periods may pose a liquidity consideration.

Cash Flow

Cash flow analysis indicates a solid operating cash flow to net income ratio of 4.4, suggesting efficient cash generation from operations. However, the free cash flow has decreased to $231 million in the TTM period from $284 million, indicating a need for careful capital expenditure management.

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
EBITDA	319.10M	353.54M	411.81M	683.16M	380.96M
Net Income	63.05M	41.50M	63.76M	351.70M	150.67M
Balance Sheet
Total Assets	3.70B	3.47B	3.53B	3.76B	3.67B
Cash, Cash Equivalents and Short-Term Investments	505.88M	764.72M	711.21M	924.04M	243.31M
Total Debt	864.28M	1.00B	1.06B	1.17B	1.71B
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: 31.09
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 31.09 is below the 20-day moving average (MA) of 32.06, below the 50-day MA of 32.00, and below the 200-day MA of 42.93, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 46.93 is Neutral, 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
IAS	73 Outperform	$1.34B	28.63	4.80%	―	13.84%	1494.51%
ZD	72 Outperform	$1.33B	19.43	4.12%	―	3.24%	36.80%
MGNI	71 Outperform	$3.17B	115.03	4.30%	―	5.59%	―
CRTO	71 Outperform	$1.19B	9.37	12.79%	―	-0.40%	36.44%
STGW	66 Neutral	$1.42B	1,011.76	0.19%	―	9.86%	―
QNST	65 Neutral	$922.62M	―	-0.29%	―	88.81%	99.16%
Sector *	59 Neutral	C$3.42B	8.24	-17.94%	5.37%	0.41%	-31.22%

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.