NYSE:ZTO: good value for what you're paying.

Last update: Jul 1, 2024

Discover ZTO EXPRESS CAYMAN INC-ADR (NYSE:ZTO), an undervalued stock highlighted by our stock screener. NYSE:ZTO showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Examination for NYSE:ZTO

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:ZTO has received a 8 out of 10:

Based on the Price/Earnings ratio, ZTO is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ZTO to the average of the S&P500 Index (28.36), we can say ZTO is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.03, the valuation of ZTO can be described as very reasonable.
ZTO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZTO is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.16, ZTO is valued rather cheaply.
ZTO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZTO is cheaper than 88.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ZTO is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
ZTO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ZTO may justify a higher PE ratio.
ZTO's earnings are expected to grow with 15.62% in the coming years. This may justify a more expensive valuation.

Understanding NYSE:ZTO's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ZTO scores a 8 out of 10:

ZTO has a better Return On Assets (9.46%) than 94.12% of its industry peers.
ZTO has a better Return On Equity (14.70%) than 76.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.21%, ZTO belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZTO is above the industry average of 7.28%.
The 3 year average ROIC (9.42%) for ZTO is below the current ROIC(11.21%), indicating increased profibility in the last year.
ZTO has a Profit Margin of 21.59%. This is amongst the best in the industry. ZTO outperforms 100.00% of its industry peers.
ZTO's Operating Margin of 26.21% is amongst the best of the industry. ZTO outperforms 100.00% of its industry peers.
With a decent Gross Margin value of 30.82%, ZTO is doing good in the industry, outperforming 64.71% of the companies in the same industry.

Health Insights: NYSE:ZTO

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ZTO has achieved a 7 out of 10:

An Altman-Z score of 3.67 indicates that ZTO is not in any danger for bankruptcy at the moment.
ZTO has a better Altman-Z score (3.67) than 70.59% of its industry peers.
ZTO has a debt to FCF ratio of 2.54. This is a good value and a sign of high solvency as ZTO would need 2.54 years to pay back of all of its debts.
The Debt to FCF ratio of ZTO (2.54) is better than 76.47% of its industry peers.
ZTO has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ZTO (0.26) is better than 70.59% of its industry peers.
The current and quick ratio evaluation for ZTO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

A Closer Look at Growth for NYSE:ZTO

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:ZTO, the assigned 5 reflects its growth potential:

The Earnings Per Share has grown by an nice 11.69% over the past year.
Measured over the past years, ZTO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.36% on average per year.
ZTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.06%.
The Revenue has been growing by 16.89% on average over the past years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of ZTO for a complete fundamental analysis.

Disclaimer

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.