Ziff Davis (ZD) AI Stock Analysis

• Market Cap: $1.53B
• Dividend Yield: N/A
• Average Volume (3M): 608.00K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.45
• Revenue Growth: 5.94%
• EPS Growth: -8.89%
• Country: US
• Employees: 3,800
• Sector: Communication Services
• Sector Strength: 86
• Industry: Advertising Agencies
• EPS (TTM): 1.24
• Shares Outstanding: 41,002,903
• 10 Day Avg. Volume: 776,221
• 30 Day Avg. Volume: 607,998
• 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: 1.12
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 1.44
• Enterprise Value/Ebitda: 5.07
• 1Y Price Target: $46.40
• Price Target Upside: 28.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $41.00 ▲(13.10% 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

Business Outlook

Management believes the business is improving and could see all five segments return to growth in 2025, which would be a clear positive.

Revenue Growth

Management expects accelerating total revenue growth in 2Q, ahead of expectations, driven by improvements across multiple business lines.

Negative Factors

Advertising Growth

The FY25 advertising growth guide for 4-6% Y/Y was ~200bps below the Street at the midpoint.

GenAI Search Risk

There is a belief that the risk from GenAI Search could prove an overhang, with some resolution needed, despite ZD continuing to see no traffic/CTR headwinds yet.

Stock Valuation

The stock is trading cheaper than it should, but catalysts and better visibility from the increasing uncertain macro are needed to unlock this discount.

Ziff Davis Business Overview & Revenue Model

Company Description

Ziff Davis, Inc. is a leading global digital media company specializing in technology and consumer lifestyle content. Founded in 1927, the company operates in various sectors including digital advertising, e-commerce, and subscription services. Ziff Davis is well-known for its portfolio of popular websites, publications, and brands that cover topics such as technology, gaming, and health. Its core products and services include digital marketing solutions, online publications, and product reviews, catering to both consumers and businesses.

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: Positive
• Last Price: 36.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZD, the sentiment is Positive. The current price of 36.25 is above the 20-day moving average (MA) of 33.95, above the 50-day MA of 32.68, and below the 200-day MA of 41.98, indicating a neutral trend. The MACD of 1.28 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 64.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZD.

Ziff Davis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IAS	78 Outperform	$1.49B	25.99	5.52%	―	14.39%	1946.11%
ZD	74 Outperform	$1.53B	24.70	3.56%	―	5.94%	-8.89%
CRTO	74 Outperform	$1.35B	10.11	12.79%	―	-0.40%	36.44%
MGNI	74 Outperform	$3.11B	77.69	5.82%	―	5.52%	―
STGW	73 Outperform	$1.48B	492.79	-0.32%	―	9.56%	―
QNST	64 Neutral	$846.88M	192.98	2.04%	―	78.27%	―
Sector *	60 Neutral	$42.79B	1.96	-11.10%	4.01%	1.89%	-41.77%

Ziff Davis Corporate Events

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.