Zillow Group Class A (ZG) AI Stock Analysis

• Market Cap: $20.62B
• Dividend Yield: N/A
• Average Volume (3M): 574.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 15.31%
• EPS Growth: 56.19%
• Country: US
• Employees: 6,819
• Sector: Communication Services
• Sector Strength: 90
• Industry: Internet Content & Information
• EPS (TTM): 0.40
• Shares Outstanding: 50,089,970
• 10 Day Avg. Volume: 589,265
• 30 Day Avg. Volume: 574,039
• 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: 0.80
• Enterprise Value/Revenue: 6.87
• Enterprise Value/Gross Profit: 9.07
• Enterprise Value/Ebitda: 69.50
• 1Y Price Target: $86.84
• Price Target Upside: 6.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 75 Outperform
• Price Target: $91.00 ▲(11.51% Upside)

Zillow Group's overall stock score is driven by strong earnings call performance and technical analysis, indicating positive momentum and growth prospects. Financial performance is stable but hindered by profitability challenges, while valuation remains a concern due to negative earnings. The company's strategic initiatives and revenue growth provide a positive outlook, despite macroeconomic uncertainties in the housing market.

Positive Factors

Partnerships and Collaborations

ZG continues to make progress in Rentals with accelerating revenue reflecting benefits from the Redfin partnership and continued scaling of inventory.

Product Innovation

Zillow continues to improve its value proposition, with Follow Up Boss now handling 96% of Enhanced Market connections, and a new AI-supported smart message tool has supported 2M smart messages since early June.

Revenue Growth

ZG's Residential revenue growth of 6% year-over-year outpaced the residential real estate industry's year-over-year transaction value growth of 1%.

Negative Factors

Market Constraints

The broader housing market remains constrained by affordability headwinds.

Market Weakness

Expectations for continued housing market weakness are likely to limit volume growth and any meaningful positive estimate revisions.

Valuation Concerns

Despite constructive execution, there is limited potential for further multiple expansion due to stock trading above historical valuation.

Zillow Group Class A Business Overview & Revenue Model

Company Description

Zillow Group Class A (ZG) is a leading online real estate marketplace that provides a platform for consumers to buy, sell, rent, and finance properties. The company operates primarily through its flagship website, Zillow.com, and its mobile applications, offering a range of services including property listings, home value estimates, and tools for mortgage and rental management. Zillow Group also encompasses several other brands such as Trulia and StreetEasy, enhancing its footprint in the real estate sector.

How the Company Makes Money

Zillow Group generates revenue through multiple key streams. Primarily, it earns money through its Premier Agent program, where real estate agents pay for advertising and leads generated from Zillow's platform. Additionally, Zillow offers a variety of advertising services for property listings, where sellers and landlords can promote their homes. Another significant revenue source is its Zillow Offers program, which allows the company to buy homes directly from sellers, renovate them, and then sell them at a profit. Furthermore, Zillow earns revenue from mortgage origination through Zillow Home Loans, providing financing solutions to home buyers. Partnerships with real estate agencies and financial institutions also contribute to its earnings, enhancing its service offerings and market reach.

Zillow Group Class A Financial Statement Overview

Summary

Zillow Group shows moderate revenue growth and strong cost management, but struggles with profitability and decreasing free cash flow. The strong equity position and low leverage provide stability, yet profitability and cash flow sustainability need improvement.

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	2.39B	2.24B	1.95B	1.96B	2.13B	3.34B
Gross Profit	1.81B	1.71B	1.52B	1.59B	1.75B	1.51B
EBITDA	236.00M	198.00M	125.00M	123.00M	370.00M	119.96M
Net Income	-62.00M	-112.00M	-158.00M	-88.00M	-527.78M	-162.12M
Balance Sheet
Total Assets	5.42B	5.83B	6.65B	6.56B	10.70B	7.49B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.86B	2.81B	3.36B	2.83B	3.92B
Total Debt	328.00M	660.00M	1.83B	1.87B	1.60B	2.52B
Total Liabilities	670.00M	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	330.00M	285.00M	189.00M	4.36B	-3.28B	315.68M
Operating Cash Flow	484.00M	428.00M	354.00M	4.50B	-3.18B	424.20M
Investing Cash Flow	627.00M	395.00M	25.00M	-1.53B	1.09B	-1.04B
Financing Cash Flow	-1.70B	-1.23B	-352.00M	-4.34B	3.15B	1.16B

Zillow Group Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.61
• 50DMA: Positive
• 100DMA: Positive
• 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 81.61 is above the 20-day moving average (MA) of 79.97, above the 50-day MA of 75.40, and above the 200-day MA of 72.55, indicating a bullish trend. The MACD of 1.79 indicates Negative momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 68.08 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
ZG	75 Outperform	$20.62B	―	-1.34%	―	15.31%	56.19%
Z	73 Outperform	$20.62B	―	-1.34%	―	15.31%	56.19%
CARG	73 Outperform	$3.37B	27.49	29.24%	―	4.80%	―
YELP	70 Outperform	$1.98B	14.22	20.13%	―	5.37%	13.08%
TWLO	61 Neutral	$15.72B	841.05	0.24%	―	11.56%	―
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
NXDR	54 Neutral	$793.88M	―	-14.27%	―	9.65%	56.50%

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.