ZALANDO SE (ZAL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ZAL - DE000ZAL1111 - Common Stock
24.06 EUR
+0.41 (+1.73%)
We assign a fundamental rating of 5 out of 10 to ZAL. ZAL was compared to 56 industry peers in the Specialty Retail industry. Both the profitability and the financial health of ZAL get a neutral evaluation. Nothing too spectacular is happening here. ZAL is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make ZAL a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- ZAL had positive earnings in the past year.
- In the past year ZAL had a positive cash flow from operations.
- In the past 5 years ZAL has always been profitable.
- Each year in the past 5 years ZAL had a positive operating cash flow.
1.2 Ratios
- ZAL's Return On Assets of 2.66% is in line compared to the rest of the industry. ZAL outperforms 57.14% of its industry peers.
- Looking at the Return On Equity, with a value of 8.44%, ZAL is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- ZAL has a Return On Invested Capital (5.47%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ZAL is significantly below the industry average of 10.20%.
- The 3 year average ROIC (3.34%) for ZAL is below the current ROIC(5.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 8.44% | ||
| ROIC | 5.47% |
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
- The Profit Margin of ZAL (2.06%) is comparable to the rest of the industry.
- ZAL's Profit Margin has improved in the last couple of years.
- ZAL has a Operating Margin (3.30%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of ZAL has grown nicely.
- ZAL's Gross Margin of 40.37% is in line compared to the rest of the industry. ZAL outperforms 57.14% of its industry peers.
- In the last couple of years the Gross Margin of ZAL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.3% | ||
| PM (TTM) | 2.06% | ||
| GM | 40.37% |
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
- ZAL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ZAL has been reduced compared to 1 year ago.
- ZAL has more shares outstanding than it did 5 years ago.
- ZAL has a better debt/assets ratio than last year.
2.2 Solvency
- ZAL has an Altman-Z score of 2.30. This is not the best score and indicates that ZAL is in the grey zone with still only limited risk for bankruptcy at the moment.
- ZAL has a Altman-Z score of 2.30. This is in the better half of the industry: ZAL outperforms 64.29% of its industry peers.
- The Debt to FCF ratio of ZAL is 3.63, which is a good value as it means it would take ZAL, 3.63 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ZAL (3.63) is better than 71.43% 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.
- The Debt to Equity ratio of ZAL (0.44) is better than 66.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.86
WACC6.33%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that ZAL should not have too much problems paying its short term obligations.
- The Current ratio of ZAL (1.12) is comparable to the rest of the industry.
- ZAL has a Quick Ratio of 1.12. This is a bad value and indicates that ZAL is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of ZAL (0.59) is better than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.72% over the past year.
- ZAL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.33% yearly.
- ZAL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.06%.
- 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)17.72%
EPS 3Y2.91%
EPS 5Y23.33%
EPS Q2Q%-64.71%
Revenue 1Y (TTM)12.06%
Revenue growth 3Y0.7%
Revenue growth 5Y10.28%
Sales Q2Q%26.46%
3.2 Future
- The Earnings Per Share is expected to grow by 26.63% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 10.27% on average over the next years. This is quite good.
EPS Next Y19.08%
EPS Next 2Y24.54%
EPS Next 3Y25.18%
EPS Next 5Y26.63%
Revenue Next Year16.7%
Revenue Next 2Y15.08%
Revenue Next 3Y11.96%
Revenue Next 5Y10.27%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ZAL is valuated quite expensively with a Price/Earnings ratio of 25.87.
- Compared to the rest of the industry, the Price/Earnings ratio of ZAL indicates a somewhat cheap valuation: ZAL is cheaper than 67.86% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, ZAL is valued at the same level.
- ZAL is valuated correctly with a Price/Forward Earnings ratio of 15.99.
- 66.07% of the companies in the same industry are more expensive than ZAL, based on the Price/Forward Earnings ratio.
- ZAL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZAL is valued a bit cheaper than 62.50% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZAL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
- ZAL's 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 25.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)1.11
EPS Next 2Y24.54%
EPS Next 3Y25.18%
5. Dividend
5.1 Amount
- No dividends for ZAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ZALANDO SE / ZAL.DE FAQ
Can you provide the ChartMill fundamental rating for ZALANDO SE?
ChartMill assigns a fundamental rating of 5 / 10 to ZAL.DE.
Can you provide the valuation status for ZALANDO SE?
ChartMill assigns a valuation rating of 5 / 10 to ZALANDO SE (ZAL.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for ZALANDO SE?
ZALANDO SE (ZAL.DE) has a profitability rating of 6 / 10.
What is the valuation of ZALANDO SE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ZALANDO SE (ZAL.DE) is 25.87 and the Price/Book (PB) ratio is 2.24.
What is the financial health of ZALANDO SE (ZAL.DE) stock?
The financial health rating of ZALANDO SE (ZAL.DE) is 5 / 10.