ZALANDO SE (ZAL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ZAL - DE000ZAL1111 - Common Stock
23.7 EUR
+0.05 (+0.21%)
Taking everything into account, ZAL scores 5 out of 10 in our fundamental rating. ZAL was compared to 56 industry peers in the Specialty Retail industry. ZAL has an average financial health and profitability rating. ZAL is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, ZAL could be worth investigating further 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.
- 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
- The Return On Assets of ZAL (2.66%) is comparable to the rest of the industry.
- The Return On Equity of ZAL (8.44%) is better than 64.29% of its industry peers.
- With a Return On Invested Capital value of 5.47%, ZAL perfoms like the industry average, outperforming 57.14% 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 10.20%.
- 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.
- In the last couple of years the Profit Margin of ZAL has grown nicely.
- ZAL has a Operating Margin of 3.30%. This is comparable to the rest of the industry: ZAL outperforms 50.00% of its industry peers.
- ZAL's Operating Margin has improved in the last couple of years.
- ZAL has a Gross Margin (40.37%) which is in line with its industry peers.
- ZAL's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZAL is destroying value.
- Compared to 1 year ago, ZAL has less shares outstanding
- The number of shares outstanding for ZAL has been increased compared to 5 years ago.
- The debt/assets ratio for ZAL has been reduced compared to a year ago.
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 better Altman-Z score (2.30) than 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.
- ZAL has a Debt to FCF ratio of 3.63. This is in the better half of the industry: ZAL outperforms 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.
- With a decent Debt to Equity ratio value of 0.44, ZAL is doing good in the industry, outperforming 66.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.86
WACC6.33%
2.3 Liquidity
- ZAL has a Current Ratio of 1.12. This is a normal value and indicates that ZAL is financially healthy and should not expect problems in meeting its short term obligations.
- ZAL has a Current ratio of 1.12. This is comparable to the rest of the industry: ZAL outperforms 44.64% of its industry peers.
- A Quick Ratio of 0.59 indicates that ZAL may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.59, ZAL is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
| 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.
- The Revenue has grown by 12.06% in the past year. This is quite good.
- ZAL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.28% yearly.
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
- Based on estimates for the next years, ZAL will show a very strong growth in Earnings Per Share. The EPS will grow by 26.63% on average per year.
- Based on estimates for the next years, ZAL will show a quite strong growth in Revenue. The Revenue will grow by 10.27% on average per year.
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
- 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 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 25.48.
- Based on the Price/Earnings ratio, ZAL is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of ZAL to the average of the S&P500 Index (27.25), we can say ZAL is valued inline with the index average.
- With a Price/Forward Earnings ratio of 15.75, ZAL is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ZAL indicates a somewhat cheap valuation: ZAL is cheaper than 66.07% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ZAL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.48 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZAL is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- 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 | 15.76 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ZAL may justify a higher PE ratio.
- A more expensive valuation may be justified as ZAL's earnings are expected to grow with 25.18% in the coming years.
PEG (NY)1.34
PEG (5Y)1.09
EPS Next 2Y24.54%
EPS Next 3Y25.18%
5. Dividend
5.1 Amount
- ZAL does not give a dividend.
| 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 25.48 and the Price/Book (PB) ratio is 2.21.
What is the financial health of ZALANDO SE (ZAL.DE) stock?
The financial health rating of ZALANDO SE (ZAL.DE) is 5 / 10.