Ziff Davis Stock Intrinsic Value – ZIFF DAVIS Reports Decreased Revenue but 135.9% Increase in Net Income for FY2023 Q2
August 12, 2023
☀️Earnings Overview
On August 4 2023, ZIFF DAVIS ($NASDAQ:ZD) reported their FY2023 Q2 earnings results. Total revenue was USD 326.0 million, a 3.4% decrease compared to the same period in the previous year; however, net income was USD 16.7 million, a 135.9% increase from the same period the year before.
Analysis – Ziff Davis Stock Intrinsic Value
GoodWhale’s analysis of ZIFF DAVIS‘s fundamentals shows that its intrinsic value is around $104.6, calculated by GoodWhale’s proprietary Valuation Line. GoodWhale has determined that the ZIFF DAVIS stock is currently undervalued by 34.3%, and is being traded at $68.7. This presents an opportunity for investors who are looking to gain exposure to ZIFF DAVIS shares through the stock market. With the current undervaluation, investors can purchase ZIFF DAVIS shares at a discounted price and benefit from future appreciation as market values change. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ziff Davis. More…
| Total Revenues | Net Income | Net Margin |
| 1.37k | 94.69 | 8.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ziff Davis. More…
| Operations | Investing | Financing |
| 299 | -124.79 | -143.76 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ziff Davis. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.47k | 1.61k | 39.39 |
Key Ratios Snapshot
Some of the financial key ratios for Ziff Davis are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.0% | -10.3% | 13.6% |
| FCF Margin | ROE | ROA |
| 14.0% | 6.2% | 3.4% |
Peers
In the world of publishing and media, there is intense competition between companies to maintain the highest levels of quality and profitability. One such company is Ziff Davis Inc, which faces stiff competition from the likes of Salem Media Group Inc, Fame Productions Inc, and PT Media Nusantara Citra Tbk. While each company has its own unique strengths and weaknesses, all are striving to be the best in the business.
– Salem Media Group Inc ($NASDAQ:SALM)
Salem Media Group is a publicly traded radio broadcasting company in the United States. The company owns and operates radio stations in small and mid-sized markets. Salem Media Group also owns and operates Salem Radio Network, a syndicated talk radio service. The company was founded in 1985 and is headquartered in Camarillo, California.
– Fame Productions Inc ($OTCPK:FMPR)
PT Media Nusantara Citra Tbk is one of the largest media companies in Indonesia. The company is involved in the production, distribution, and broadcasting of television programs, movies, and music. The company also owns and operates a number of radio and television stations. PT Media Nusantara Citra Tbk has a market cap of 10.52T as of 2022, a Return on Equity of 12.38%.
Summary
ZIFF DAVIS, a leading technology, gaming and lifestyle digital media company, recently reported their financial results for the second quarter of fiscal year 2023. Total revenue came in at USD 326.0 million, which was a 3.4% decrease from the same period in the previous year. On the other hand, net income rose by 135.9% to USD 16.7 million. This news caused the stock price to drop on the same day. Investors should be cautious when considering an investment in ZIFF DAVIS due to its declining revenue.
However, the impressive increase in net income indicates that the company may be able to turn around its fortunes and deliver strong returns.
In addition, any potential investments should be made with the understanding that the stock could remain volatile in the short-term. Overall, investors should closely monitor ZIFF DAVIS’ upcoming financial performance to help inform their decision-making when considering investments in the company.
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