Zillow Group Class A (ZG) AI Stock Analysis

• Market Cap: $17.27B
• Dividend Yield: N/A
• Average Volume (3M): 491.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 14.96%
• EPS Growth: 49.24%
• Country: US
• Employees: 6,819
• Sector: Communication Services
• Sector Strength: 79
• Industry: Internet Content & Information
• EPS (TTM): 0.41
• Shares Outstanding: 51,874,170
• 10 Day Avg. Volume: 363,669
• 30 Day Avg. Volume: 491,047
• PEG Ratio: 1.04
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.73
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 6.14
• Enterprise Value/Ebitda: 23.45
• 1Y Price Target: $78.44
• Price Target Upside: 13.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 64 Neutral
• Price Target: $71.00 ▲(2.78%Upside)

Zillow Group's overall stock score reflects strong financial management and promising growth in key revenue segments, as highlighted in the earnings call and recent corporate actions. However, ongoing profitability challenges and mixed technical indicators weigh on the score. The strategic moves to settle debt and initiate a stock buyback are positive, but valuation concerns due to a negative P/E ratio limit the upside.

Positive Factors

Partnerships

The Redfin partnership complements already robust Rentals growth.

Technology Advantage

Zillow has a massive tech moat that converts into a sustainable data advantage on both sides of the equation.

Negative Factors

Guidance and Expectations

The FY guide may feel like Zillow is not following the script to get to their targets.

Housing Market

The housing market remains muted and keeps the stock cautious for now.

Market Sentiment

Sentiment has been continuing to slowly shift away from belief in Zillow’s mid-cycle earnings power to questions around their ultimate ability to be a dominant share player in a consolidating market.

Zillow Group Class A 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 primarily through its online real estate marketplace and related services. Key revenue streams include: (1) Premier Agent: Zillow charges real estate agents for advertising and leads generated through its platform. Agents pay for enhanced visibility and access to potential clients. (2) Zillow Offers: Previously, Zillow directly participated in buying and selling homes through this program, although it is currently winding down. (3) Rentals Marketplace: Revenue is generated from property management companies and landlords who pay for advertising rental properties. (4) Mortgages: Zillow offers advertising and leads to mortgage lenders and receives fees for connecting them with potential borrowers. Additionally, Zillow earns from display advertising on its websites and mobile applications. Partnerships with real estate professionals and integration of various services also contribute to its financial growth.

Zillow Group Class A Financial Statement Overview

Summary

Zillow Group shows moderate revenue growth and effective cost management with a strong gross profit margin. However, challenges with profitability and decreasing free cash flow remain concerns despite a solid equity position and low leverage.

Income Statement

Zillow Group's revenue shows a moderate growth trend with a 3.09% increase TTM over the previous year. However, the company is struggling with profitability, as indicated by negative EBIT and net income margins in the TTM period, although there's a slight improvement compared to the prior year. Gross profit margin remains strong at 76.45%, suggesting effective cost management in core operations.

Balance Sheet

The balance sheet of Zillow Group is solid with a low debt-to-equity ratio of 0.14, indicating financial stability and low leverage. Stockholders' equity constitutes a substantial 82.74% of total assets, reflecting a strong equity position. However, the company has negative net income, affecting its return on equity.

Cash Flow

The TTM cash flow shows positive free cash flow, though it has decreased compared to the previous report. The operating cash flow to net income ratio is robust, demonstrating efficient cash generation from operations despite negative net income. However, the decrease in free cash flow growth rate is a concern.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.31B	2.24B	1.95B	1.96B	8.15B	3.34B
	Gross Profit
1.76B	1.71B	1.52B	1.59B	1.75B	1.58B
	EBIT
-161.00M	-197.00M	-270.00M	-26.00M	-246.21M	60.94M
	EBITDA
122.00M	198.00M	125.00M	123.00M	370.00M	119.96M
	Net Income Common Stockholders
-81.00M	-112.00M	-158.00M	-88.00M	-527.78M	-162.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.60B	1.86B	2.81B	3.36B	3.13B	3.92B
	Total Assets
5.75B	5.83B	6.65B	6.56B	10.70B	7.49B
	Total Debt
687.00M	660.00M	1.83B	1.87B	5.01B	2.52B
	Net Debt
-227.00M	-422.00M	340.00M	401.00M	2.40B	816.63M
	Total Liabilities
992.00M	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
204.00M	285.00M	189.00M	4.36B	-3.28B	315.68M
	Operating Cash Flow
452.00M	428.00M	354.00M	4.50B	-3.18B	424.20M
	Investing Cash Flow
547.00M	395.00M	25.00M	-1.53B	1.09B	-1.04B
	Financing Cash Flow
-1.52B	-1.23B	-352.00M	-4.34B	3.15B	1.16B

Zillow Group Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZG, the sentiment is Positive. The current price of 69.08 is above the 20-day moving average (MA) of 67.60, above the 50-day MA of 65.85, and above the 200-day MA of 68.37, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 65.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZG.

Zillow Group Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YELP	71 Outperform	$2.29B	17.03	19.74%	―	5.93%	29.17%
TWLO	69 Neutral	$18.04B	―	-0.39%	―	9.27%	95.03%
CARG	69 Neutral	$3.19B	86.36	7.98%	―	0.63%	15.34%
Z	66 Neutral	$17.27B	―	-1.72%	―	14.96%	49.24%
ZG	64 Neutral	$17.27B	―	-1.72%	―	14.96%	49.24%
Sector *	61 Neutral	$14.64B	5.81	-3.99%	6.03%	2.71%	-31.56%
KIND	47 Neutral	$581.54M	―	-18.77%	―	12.01%	35.71%

Zillow Group Class A Corporate Events

Zillow Group Elects Directors at Annual Meeting

On June 2, 2025, Zillow Group held its 2025 Annual Meeting of Shareholders, where shareholders voted to elect four Class II directors and ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The election of directors and the ratification of the accounting firm are significant for Zillow Group’s governance and financial oversight, impacting its operational stability and stakeholder confidence.

The most recent analyst rating on (ZG) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Zillow Group Class A stock, see the ZG Stock Forecast page.

Zillow Group Settles Convertible Senior Notes Debt

On May 15, 2025, Zillow Group, Inc. fully settled its $419 million outstanding principal amount of 2.75% Convertible Senior Notes due 2025, rendering the company debt-free except for credit facility borrowings for Zillow Home Loans. The settlement involved cash payments totaling approximately $425 million and the issuance of 1,385 shares of Class C capital stock, marking a significant financial milestone for the company.

The most recent analyst rating on (ZG) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Zillow Group Class A stock, see the ZG Stock Forecast page.

Zillow Group Authorizes $1 Billion Stock Buyback

On May 7, 2025, Zillow Group announced its Board of Directors authorized an additional $1 billion for stock repurchases, supplementing previous authorizations. The company reported strong financial results for Q1 2025, with revenue up 13% year over year to $598 million, driven by growth in various segments including Premier Agent offerings and rental services. Zillow’s strategic expansion and effective execution have positioned it for sustainable profitable growth, with increased traffic to its platforms and a positive outlook for the year.