NEW YORK (TheStreet) -- Zillow Group (Z) - Get Report shares are down by 5.86%% to $80.26 in early trading on Friday, after the online real estate company announced yesterday that CFO Chad Cohen is resigning.
Cohen's resignation will become effective August 7 as he looks to "pursue other business interests", according to the company.
Zillow is currently conducting a search to find Cohen's replacement.
Zillow's stock has been in a free-fall ever since the company announced the purchase of rival Trulia (TRLA) last year, declining 46% since that time, according to the Wall Street Journal.
Separately, TheStreet Ratings team rates ZILLOW GROUP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZILLOW GROUP INC (Z) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Z's very impressive revenue growth greatly exceeded the industry average of 6.1%. Since the same quarter one year prior, revenues leaped by 92.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Although Z's debt-to-equity ratio of 0.09 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 5.74, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for ZILLOW GROUP INC is currently very high, coming in at 91.54%. Regardless of Z's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, Z's net profit margin of -45.87% significantly underperformed when compared to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 832.8% when compared to the same quarter one year ago, falling from -$6.26 million to -$58.38 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, ZILLOW GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: Z Ratings Report