ZALANDO SE (ZAL.DE) Stock Fundamental Analysis
FRA:ZAL - Deutsche Boerse Ag - DE000ZAL1111 - Common Stock - Currency: EUR
Overall ZAL gets a fundamental rating of 5 out of 10. We evaluated ZAL against 47 industry peers in the Specialty Retail industry. While ZAL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ZAL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ZAL had positive earnings in the past year.
ZAL had a positive operating cash flow in the past year.
Each year in the past 5 years ZAL has been profitable.
In the past 5 years ZAL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.15%, ZAL is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
ZAL's Return On Equity of 9.42% is fine compared to the rest of the industry. ZAL outperforms 65.96% of its industry peers.
With a decent Return On Invested Capital value of 6.00%, ZAL is doing good in the industry, outperforming 65.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ZAL is significantly below the industry average of 10.57%.
The last Return On Invested Capital (6.00%) for ZAL is above the 3 year average (3.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 9.42% | ||
| ROIC | 6% |
ROA(3y)1.48%
ROA(5y)2.26%
ROE(3y)4.56%
ROE(5y)6.95%
ROIC(3y)3.34%
ROIC(5y)4.59%
1.3 Margins
ZAL's Profit Margin of 2.38% is fine compared to the rest of the industry. ZAL outperforms 63.83% of its industry peers.
ZAL's Profit Margin has improved in the last couple of years.
ZAL's Operating Margin of 3.70% is fine compared to the rest of the industry. ZAL outperforms 63.83% of its industry peers.
In the last couple of years the Operating Margin of ZAL has grown nicely.
ZAL has a Gross Margin of 40.69%. This is comparable to the rest of the industry: ZAL outperforms 57.45% of its industry peers.
ZAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.7% | ||
| PM (TTM) | 2.38% | ||
| GM | 40.69% |
OM growth 3Y-2.26%
OM growth 5Y7.72%
PM growth 3Y1.6%
PM growth 5Y9.08%
GM growth 3Y-0.88%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZAL is destroying value.
Compared to 1 year ago, ZAL has less shares outstanding
Compared to 5 years ago, ZAL has more shares outstanding
The debt/assets ratio for ZAL has been reduced compared to a year ago.
2.2 Solvency
ZAL has an Altman-Z score of 3.18. This indicates that ZAL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ZAL (3.18) is better than 80.85% of its industry peers.
The Debt to FCF ratio of ZAL is 3.86, which is a good value as it means it would take ZAL, 3.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ZAL (3.86) is better than 68.09% of its industry peers.
ZAL has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, ZAL perfoms like the industry average, outperforming 59.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.91
WACC6.57%
2.3 Liquidity
ZAL has a Current Ratio of 1.37. This is a normal value and indicates that ZAL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, ZAL is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
ZAL has a Quick Ratio of 1.37. This is a bad value and indicates that ZAL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.98, ZAL is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
ZAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 203.13%, which is quite impressive.
ZAL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.33% yearly.
Looking at the last year, ZAL shows a small growth in Revenue. The Revenue has grown by 4.24% in the last year.
Measured over the past years, ZAL shows a quite strong growth in Revenue. The Revenue has been growing by 10.28% on average per year.
EPS 1Y (TTM)203.13%
EPS 3Y2.91%
EPS 5Y23.33%
EPS Q2Q%64.29%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y0.7%
Revenue growth 5Y10.28%
Sales Q2Q%7.96%
3.2 Future
ZAL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.09% yearly.
ZAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.59% yearly.
EPS Next Y23.95%
EPS Next 2Y24.77%
EPS Next 3Y24.16%
EPS Next 5Y24.09%
Revenue Next Year6.41%
Revenue Next 2Y6.01%
Revenue Next 3Y6.38%
Revenue Next 5Y6.59%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ZAL is valuated quite expensively with a Price/Earnings ratio of 35.59.
The rest of the industry has a similar Price/Earnings ratio as ZAL.
ZAL is valuated rather expensively when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.71, the valuation of ZAL can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ZAL.
The average S&P500 Price/Forward Earnings ratio is at 21.38. ZAL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.59 | ||
| Fwd PE | 28.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZAL is on the same level as its industry peers.
ZAL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.38 | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ZAL has a very decent profitability rating, which may justify a higher PE ratio.
ZAL's earnings are expected to grow with 24.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)1.53
EPS Next 2Y24.77%
EPS Next 3Y24.16%
5. Dividend
5.1 Amount
ZAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ZAL (4/25/2025, 7:00:00 PM)
34.52
-0.97 (-2.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners59.1%
Inst Owner ChangeN/A
Ins Owners10.08%
Ins Owner ChangeN/A
Market Cap9.12B
Analysts77.14
Price Target39.62 (14.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.5%
Min EPS beat(2)2.21%
Max EPS beat(2)16.78%
EPS beat(4)3
Avg EPS beat(4)-15.87%
Min EPS beat(4)-144.33%
Max EPS beat(4)61.86%
EPS beat(8)4
Avg EPS beat(8)-41.79%
EPS beat(12)6
Avg EPS beat(12)-88.42%
EPS beat(16)7
Avg EPS beat(16)-10.47%
Revenue beat(2)1
Avg Revenue beat(2)-0.11%
Min Revenue beat(2)-1.22%
Max Revenue beat(2)0.99%
Revenue beat(4)2
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)0.99%
Revenue beat(8)3
Avg Revenue beat(8)-0.68%
Revenue beat(12)3
Avg Revenue beat(12)-0.84%
Revenue beat(16)6
Avg Revenue beat(16)-0.63%
PT rev (1m)1.59%
PT rev (3m)7.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.23%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.59 | ||
| Fwd PE | 28.71 | ||
| P/S | 0.86 | ||
| P/FCF | 20.38 | ||
| P/OCF | 13.94 | ||
| P/B | 3.42 | ||
| P/tB | 4.03 | ||
| EV/EBITDA | 11.16 |
EPS(TTM)0.97
EY2.81%
EPS(NY)1.2
Fwd EY3.48%
FCF(TTM)1.69
FCFY4.91%
OCF(TTM)2.48
OCFY7.17%
SpS40.03
BVpS10.09
TBVpS8.57
PEG (NY)1.49
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 9.42% | ||
| ROCE | 9.8% | ||
| ROIC | 6% | ||
| ROICexc | 18.65% | ||
| ROICexgc | 27.14% | ||
| OM | 3.7% | ||
| PM (TTM) | 2.38% | ||
| GM | 40.69% | ||
| FCFM | 4.23% |
ROA(3y)1.48%
ROA(5y)2.26%
ROE(3y)4.56%
ROE(5y)6.95%
ROIC(3y)3.34%
ROIC(5y)4.59%
ROICexc(3y)9.52%
ROICexc(5y)14.27%
ROICexgc(3y)13.4%
ROICexgc(5y)19.23%
ROCE(3y)5.45%
ROCE(5y)7.5%
ROICexcg growth 3Y8.96%
ROICexcg growth 5Y22.36%
ROICexc growth 3Y2.72%
ROICexc growth 5Y17.49%
OM growth 3Y-2.26%
OM growth 5Y7.72%
PM growth 3Y1.6%
PM growth 5Y9.08%
GM growth 3Y-0.88%
GM growth 5Y-0.89%
F-Score8
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 59.1% | ||
| Cap/Sales | 1.96% | ||
| Interest Coverage | 5.57 | ||
| Cash Conversion | 88.24% | ||
| Profit Quality | 178.14% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 3.18 |
F-Score8
WACC6.57%
ROIC/WACC0.91
Cap/Depr(3y)86.74%
Cap/Depr(5y)104.05%
Cap/Sales(3y)2.65%
Cap/Sales(5y)2.86%
Profit Quality(3y)549.88%
Profit Quality(5y)378.62%
High Growth Momentum
Growth
EPS 1Y (TTM)203.13%
EPS 3Y2.91%
EPS 5Y23.33%
EPS Q2Q%64.29%
EPS Next Y23.95%
EPS Next 2Y24.77%
EPS Next 3Y24.16%
EPS Next 5Y24.09%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y0.7%
Revenue growth 5Y10.28%
Sales Q2Q%7.96%
Revenue Next Year6.41%
Revenue Next 2Y6.01%
Revenue Next 3Y6.38%
Revenue Next 5Y6.59%
EBIT growth 1Y105.03%
EBIT growth 3Y-1.58%
EBIT growth 5Y18.79%
EBIT Next Year115.16%
EBIT Next 3Y40.08%
EBIT Next 5Y29.6%
FCF growth 1Y-34.82%
FCF growth 3Y16.44%
FCF growth 5Y84.9%
OCF growth 1Y-31.11%
OCF growth 3Y2.01%
OCF growth 5Y14.86%