ZGZillow Group, Inc.
Is the business good?
The checks split: nothing decisive, though margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 1% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ZG?
Zillow Group, Inc. earns 0.23% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 8.8 points below what the capital costs: growth destroys value
- Operating margin
- 0.43%
Operating margin · Internet Content & Information median 4.9% · 12 months to Q2 2026
- Share count, year on year
- −9.4%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 22%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 6.7% |
| FY2021 | 11% |
| FY2022 | −4.8% |
| FY2023 | −14% |
| FY2024 | −8.8% |
| FY2025 | −1.3% |
Details›
- Gross margin12 months to Q2 2026
- 73%
- Operating margin12 months to Q2 2026
- 0.43%
- Net margin12 months to Q2 2026
- 2.0%
- Free cash flow margin
- 9.2%
- R&D as % of revenue
- 22%
- Revenue, trailing twelve months
- $2.81B
- Free cash flow, trailing twelve months
- $258M
- Net income, trailing twelve months
- $55M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 0.23%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
Ranks #21 of 31 by RyuScore