ZipRecruiter, Inc. (ZIP) stock analysis
Close on Nov 11, 2026Market cap $486.78MP/E 11.4Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed10 of 30 checks passed
ZipRecruiter passes 10 of the 30 checks behind our score; 13 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 6/6
- Growth
- 0/6
- Past performance
- 3/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 39.2% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $5.92 is below our fair value estimate of $9.74.
Return on capital over 10%
Return on invested capital was 22.4%, above the 10% that usually covers the cost of capital.
P/E below its 5-year median
ZipRecruiter's P/E of 11.4 is below its own 5-year median of 29.8.
What to watch
Revenue growing under 10% a year
Revenue grew -20.8% a year over the last three fiscal years, short of the 10% we look for.
Interest not well covered
Operating income covers interest expense 0.7 times; we look for at least 5.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 14.1% of total debt; we look for at least 20%.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.89; above 3 is the safe zone and below 1.8 the distress zone.
Valuation6/6
P/E below its 5-year median
ZipRecruiter's P/E of 11.4 is below its own 5-year median of 29.8.
P/E below the industry
ZipRecruiter's P/E of 11.4 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
ZipRecruiter's EV/EBITDA of 19.2 is below its 5-year median of 20.2.
P/S below the industry
ZipRecruiter's price-to-sales of 1.05 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 2.77 (book value is negative, so we use sales).
Trading below fair value
The share price of $5.92 is below our fair value estimate of $9.74.
Margin of safety over 20%
The price is 39.2% below fair value, more than the 20% cushion we look for.
Growth0/6
Revenue growing under 10% a year
Revenue grew -20.8% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 3.0% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was 89.3% over the last twelve months, against 89.4% a year earlier.
Past performance3/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 22.4%, above the 10% that usually covers the cost of capital.
Return on equity against the industry
Needs positive equity.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 9.3% over the last twelve months, against a 5-year average of 1.0%.
Net margin above the industry
ZipRecruiter's net margin of 9.3% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health1/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 14.1% of total debt; we look for at least 20%.
Interest not well covered
Operating income covers interest expense 0.7 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 3.28 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.89; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
ZipRecruiter has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$9.74
The share price is 39% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 28.7× | 29.8× | 27.6× | $14.92 | 44% |
| EV/EBITDA | 19.5× | 20.2× | 18.8× | $6.02 | 39% |
| Earnings power | 13.8% cost of equity | – | – | $4.60 | 17% |
| Fair value | $9.74 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 29.8
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $4.42M
- Value traded per 1% price move
- $866.64K
Downside
High risk
- Typical loss in a bad month
- 42.0%
- Volatility (annualized)
- 108%
- Sharpe ratio, 1 year
- 0.26
- Beta to the S&P 500 (5Y)
- 1.79
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -5.3% | -20.8% | +1.4% | – | |
| Gross profit | -5.5% | -21.2% | +1.9% | – | |
| Free cash flow | -78.0% | -57.2% | -35.2% | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | -99.7% | 103.5% | |
| Return on assets | – | – | -5.3% | |
| Current ratio | – | 2.03 | 6.33 | |
| Debt to equity | – | -0.50 | -7.06 | |
| Net debt to EBITDA | – | -1.20× | -51.73× | |
| Interest coverage | – | 62.1× | -0.7× | |
| Capex to revenue | – | 0.3% | 0.2% | |
| Diluted shares | – | 94M | 90M |
Where the cash went
Fiscal 2021 to 2025, five years combined
ZipRecruiter generated $432.83M from operations and spent $643.72M on capital expenditure, dividends and share buybacks. 2% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -7.3% | 0.73× | -19.35× | 103.5% |
| FY2024 | -2.7% | 0.72× | 60.73× | -118.0% |
| FY2023 | 7.6% | 0.94× | 37.15× | 265.5% |
| FY2022 | 6.8% | 1.63× | 4.22× | 46.7% |
| FY2021 | 0.5% | 2.43× | 3.31× | 3.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$32.99M
- Cash generatingOperating cash flow above zero$10.96M
- Return on assets improvedROA up on the prior year-1.9% → -5.0%
- Earnings backed by cashOperating cash flow above net income$10.96M vs -$32.99M
- Less leverageLong-term debt to assets fell81.9% → 95.6%
- Better liquidityCurrent ratio rose6.66 → 6.33
- No dilutionShare count did not rise99M → 90M
- Gross margin improvedGross margin up on the prior year89.42% → 89.25%
- More efficientAsset turnover rose0.72 → 0.68
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