Zillow Group, Inc. (Z): a likely value trap?

Avoid — the "cheap" numbers describe a company whose core rental business is now under active federal antitrust attack and securities-fraud litigation, with trial looming.

⚠ TRAP Fundamentals73/100

Down 84% from its all-time high of $197.81 — now $31.85

Why Z dropped

Zillow's original 2021 crash was the well-known iBuying (Zillow Offers) disaster, but that's ancient history — the stock has been sliding again in 2025-2026 for a new reason: the FTC sued Zillow and Redfin in September 2025 alleging they illegally colluded (Zillow paid Redfin $100M) to suppress competition in online rental listings, and a wave of securities-fraud class actions followed, each disclosure knocking the stock down further (a 16-17% single-day drop, then more hits in May and July 2026).

Fwd P/E 10.6Op margin 5.1%Rev growth 18.4%Debt/equity 9.7%Analyst upside 75.3%

How this scored 73/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 2.3%

✅ Generates cash Free cash flow $286M

✅ Not drowning in debt Debt/equity 9.7% (limit 200%)

✅ Can pay its bills Current ratio 2.3 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 3/25

Operating margin 5.1% 2/9

Net profit margin 2.3% 1/8

Return on equity 1.3% 0/8

Growth Is it getting bigger, or dying? 23/25

Revenue growth 18.4% 7/9

Earnings growth 533.3% 8/8

Expected profit change 1102.4% 8/8

Value Is it cheap right now? 23/25

Forward P/E 10.6 9/10

PEG ratio 0.9 7/8

Analyst target upside 75.3% 7/7

Balance sheet Will it survive? 24/25

Debt / equity 9.7% 10/10

Current ratio 2.3 7/8

Free cash flow $286M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-22. Research only — not financial advice.