NYSE:ZTO appears to be flying under the radar despite its strong fundamentals.

Our stock screening tool has pinpointed ZTO EXPRESS CAYMAN INC-ADR (NYSE:ZTO) as an undervalued stock. NYSE:ZTO maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Insights: NYSE:ZTO

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:ZTO, the assigned 7 reflects its valuation:

• 76.47% of the companies in the same industry are more expensive than ZTO, based on the Price/Earnings ratio.
• ZTO is valuated rather cheaply when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
• The Price/Forward Earnings ratio is 11.12, which indicates a very decent valuation of ZTO.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of ZTO indicates a rather cheap valuation: ZTO is cheaper than 94.12% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of ZTO to the average of the S&P500 Index (21.40), we can say ZTO is valued slightly cheaper.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZTO indicates a rather cheap valuation: ZTO is cheaper than 82.35% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• ZTO has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as ZTO's earnings are expected to grow with 13.92% in the coming years.

Understanding NYSE:ZTO's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ZTO has achieved a 7:

• The Return On Assets of ZTO (9.97%) is better than 94.12% of its industry peers.
• ZTO's Return On Equity of 15.06% is fine compared to the rest of the industry. ZTO outperforms 70.59% of its industry peers.
• The Return On Invested Capital of ZTO (10.37%) is better than 82.35% of its industry peers.
• The Profit Margin of ZTO (23.15%) is better than 100.00% of its industry peers.
• ZTO has a better Operating Margin (25.78%) than 100.00% of its industry peers.
• Looking at the Gross Margin, with a value of 30.01%, ZTO is in the better half of the industry, outperforming 64.71% of the companies in the same industry.

ChartMill's Evaluation of Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ZTO, the assigned 6 for health provides valuable insights:

• ZTO has an Altman-Z score of 3.77. This indicates that ZTO is financially healthy and has little risk of bankruptcy at the moment.
• ZTO has a better Altman-Z score (3.77) than 70.59% of its industry peers.
• The Debt to FCF ratio of ZTO is 1.27, which is an excellent value as it means it would take ZTO, only 1.27 years of fcf income to pay off all of its debts.
• ZTO has a Debt to FCF ratio of 1.27. This is amongst the best in the industry. ZTO outperforms 82.35% of its industry peers.
• ZTO has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
• ZTO has a better Debt to Equity ratio (0.29) than 70.59% of its industry peers.

What does the Growth looks like for NYSE:ZTO

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:ZTO has received a 5 out of 10:

• The Earnings Per Share has grown by an impressive 29.93% over the past year.
• The Earnings Per Share has been growing by 12.36% on average over the past years. This is quite good.
• Looking at the last year, ZTO shows a quite strong growth in Revenue. The Revenue has grown by 8.49% in the last year.
• Measured over the past years, ZTO shows a quite strong growth in Revenue. The Revenue has been growing by 16.89% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of ZTO contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.