📊 ZD Key Takeaways
Is Ziff Davis, Inc.. (ZD) a Good Investment?
Ziff Davis generates strong free cash flow ($287.9M, 19.8% FCF margin) with moderate leverage and healthy gross margins (58.5%), demonstrating operational cash generation capability. However, flat net income growth despite 3.5% revenue expansion and a significant 19% YoY EPS decline signal deteriorating profitability and negative operational leverage, coupled with severely depressed returns on capital (ROE 2.7%, ROA 1.3%) that suggest inefficient capital deployment.
Why Buy Ziff Davis, Inc.. Stock? ZD Key Strengths
- Exceptional free cash flow generation at $287.9M with 19.8% FCF margin, demonstrating strong cash conversion despite earnings challenges
- Healthy gross margins at 58.5% indicating competitive pricing power and cost management
- Moderate leverage at 0.49x D/E ratio with adequate interest coverage of 4.9x and strong cash position of $607.0M
ZD Stock Risks: Ziff Davis, Inc.. Investment Risks
- Net income flat YoY while revenue grows 3.5% indicates margin compression and deteriorating operational leverage
- Diluted EPS declined 19% YoY, signaling earnings per share deterioration despite revenue growth
- Critically low return on equity (2.7%) and return on assets (1.3%) indicate severe capital inefficiency and value destruction
Key Metrics to Watch
- Operating margin trend - monitor for stabilization or reversal of compression below 12.6%
- Return on equity - critical turnaround indicator given severe underperformance at 2.7%
- EPS growth acceleration - essential to verify if earnings decline reverses and profitability improves
Ziff Davis, Inc.. (ZD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Ziff Davis, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ZD Profit Margin, ROE & Profitability Analysis
ZD vs Telecom Sector: How Ziff Davis, Inc.. Compares
How Ziff Davis, Inc.. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ziff Davis, Inc.. Stock Overvalued? ZD Valuation Analysis 2026
Based on fundamental analysis, Ziff Davis, Inc.. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ziff Davis, Inc.. Balance Sheet: ZD Debt, Cash & Liquidity
ZD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ziff Davis, Inc..'s revenue has shown modest growth of 4% over the 5-year period. The most recent EPS of $0.89 reflects profitable operations.
ZD Revenue Growth, EPS Growth & YoY Performance
ZD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $353.6M | -$1.0M | $-0.02 |
| Q2 2025 | $320.8M | $26.3M | $0.62 |
| Q1 2025 | $314.5M | $10.6M | $0.23 |
| Q3 2024 | $341.0M | -$1.0M | $-0.02 |
| Q2 2024 | $320.8M | $9.1M | $0.19 |
| Q1 2024 | $307.1M | -$7.6M | $-0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ziff Davis, Inc.. Dividends, Buybacks & Capital Allocation
ZD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ziff Davis, Inc.. (CIK: 0001084048)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ZD
What is the AI rating for ZD?
Ziff Davis, Inc.. (ZD) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ZD's key strengths?
Claude: Exceptional free cash flow generation at $287.9M with 19.8% FCF margin, demonstrating strong cash conversion despite earnings challenges. Healthy gross margins at 58.5% indicating competitive pricing power and cost management.
What are the risks of investing in ZD?
Claude: Net income flat YoY while revenue grows 3.5% indicates margin compression and deteriorating operational leverage. Diluted EPS declined 19% YoY, signaling earnings per share deterioration despite revenue growth.
What is ZD's revenue and growth?
Ziff Davis, Inc.. reported revenue of $1.5B.
Does ZD pay dividends?
Ziff Davis, Inc.. does not currently pay dividends.
Where can I find ZD SEC filings?
Official SEC filings for Ziff Davis, Inc.. (CIK: 0001084048) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ZD's EPS?
Ziff Davis, Inc.. has a diluted EPS of $1.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ZD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Ziff Davis, Inc.. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ZD stock overvalued or undervalued?
Valuation metrics for ZD: ROE of 2.7% (sector avg: 15%), net margin of 3.3% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy ZD stock in 2026?
Our dual AI analysis gives Ziff Davis, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ZD's free cash flow?
Ziff Davis, Inc..'s operating cash flow is $407.1M, with capital expenditures of $119.2M. FCF margin is 19.8%.
How does ZD compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 3.3% (avg: 14%), ROE 2.7% (avg: 15%), current ratio 1.27 (avg: 1).