ZTO EXPRESS CAYMAN INC-ADR (ZTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZTO - US98980A1051 - ADR
20.55 USD
-0.25 (-1.2%)
20.55 USD
0 (0%)
Overall ZTO gets a fundamental rating of 7 out of 10. We evaluated ZTO against 23 industry peers in the Air Freight & Logistics industry. Both the health and profitability get an excellent rating, making ZTO a very profitable company, without any liquidiy or solvency issues. ZTO may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ZTO suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ZTO was profitable.
In the past year ZTO had a positive cash flow from operations.
Each year in the past 5 years ZTO has been profitable.
ZTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.76%, ZTO belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
ZTO's Return On Equity of 13.66% is fine compared to the rest of the industry. ZTO outperforms 78.26% of its industry peers.
The Return On Invested Capital of ZTO (10.83%) is better than 82.61% of its industry peers.
ZTO had an Average Return On Invested Capital over the past 3 years of 10.66%. This is in line with the industry average of 11.50%.
The 3 year average ROIC (10.66%) for ZTO is below the current ROIC(10.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 13.66% | ||
| ROIC | 10.83% |
ROA(3y)9.37%
ROA(5y)8.59%
ROE(3y)13.81%
ROE(5y)12%
ROIC(3y)10.66%
ROIC(5y)9.47%
1.3 Margins
ZTO has a Profit Margin of 18.60%. This is amongst the best in the industry. ZTO outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of ZTO has declined.
ZTO's Operating Margin of 22.60% is amongst the best of the industry. ZTO outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of ZTO has grown nicely.
ZTO has a better Gross Margin (25.99%) than 69.57% of its industry peers.
ZTO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.6% | ||
| PM (TTM) | 18.6% | ||
| GM | 25.99% |
OM growth 3Y13.76%
OM growth 5Y1.52%
PM growth 3Y8.39%
PM growth 5Y-4.95%
GM growth 3Y12.65%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
ZTO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ZTO has been reduced compared to 1 year ago.
Compared to 5 years ago, ZTO has more shares outstanding
The debt/assets ratio for ZTO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.34 indicates that ZTO is not in any danger for bankruptcy at the moment.
The Altman-Z score of ZTO (4.34) is better than 73.91% of its industry peers.
ZTO has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.13, ZTO belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that ZTO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.18, ZTO perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 4.34 |
ROIC/WACC2.38
WACC4.55%
2.3 Liquidity
A Current Ratio of 1.38 indicates that ZTO should not have too much problems paying its short term obligations.
ZTO has a Current ratio of 1.38. This is in the lower half of the industry: ZTO underperforms 60.87% of its industry peers.
ZTO has a Quick Ratio of 1.38. This is a normal value and indicates that ZTO is financially healthy and should not expect problems in meeting its short term obligations.
ZTO has a Quick ratio (1.38) which is in line with its industry peers.
ZTO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for ZTO have decreased by -6.97% in the last year.
The Earnings Per Share has been growing slightly by 7.77% on average over the past years.
ZTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.17%.
Measured over the past years, ZTO shows a quite strong growth in Revenue. The Revenue has been growing by 14.90% on average per year.
EPS 1Y (TTM)-6.97%
EPS 3Y24.74%
EPS 5Y7.77%
EPS Q2Q%6.9%
Revenue 1Y (TTM)13.17%
Revenue growth 3Y13.35%
Revenue growth 5Y14.9%
Sales Q2Q%11.14%
3.2 Future
The Earnings Per Share is expected to grow by 6.86% on average over the next years.
The Revenue is expected to grow by 9.01% on average over the next years. This is quite good.
EPS Next Y-8.81%
EPS Next 2Y2.65%
EPS Next 3Y6.01%
EPS Next 5Y6.86%
Revenue Next Year12.91%
Revenue Next 2Y12.6%
Revenue Next 3Y12.19%
Revenue Next 5Y9.01%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.92, which indicates a correct valuation of ZTO.
Compared to the rest of the industry, the Price/Earnings ratio of ZTO indicates a rather cheap valuation: ZTO is cheaper than 82.61% of the companies listed in the same industry.
ZTO is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.18, which indicates a very decent valuation of ZTO.
95.65% of the companies in the same industry are more expensive than ZTO, based on the Price/Forward Earnings ratio.
ZTO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
ZTO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZTO is cheaper than 95.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ZTO is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.9 | ||
| EV/EBITDA | 5.38 |
4.3 Compensation for Growth
The excellent profitability rating of ZTO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.66
EPS Next 2Y2.65%
EPS Next 3Y6.01%
5. Dividend
5.1 Amount
ZTO has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.45, ZTO pays a better dividend. On top of this ZTO pays more dividend than 91.30% of the companies listed in the same industry.
ZTO's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
ZTO has been paying a dividend for over 5 years, so it has already some track record.
ZTO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
DPN/A
EPS Next 2Y2.65%
EPS Next 3Y6.01%
20.55
-0.25 (-1.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners14.67%
Inst Owner Change-20.15%
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap16.26B
Revenue(TTM)47.51B
Net Income(TTM)8.84B
Analysts86.67
Price Target25.53 (24.23%)
Short Float %4.22%
Short Ratio11.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend1.03
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.73%
Min EPS beat(2)-19.32%
Max EPS beat(2)28.78%
EPS beat(4)1
Avg EPS beat(4)-5.07%
Min EPS beat(4)-19.32%
Max EPS beat(4)28.78%
EPS beat(8)3
Avg EPS beat(8)-2.21%
EPS beat(12)6
Avg EPS beat(12)1.06%
EPS beat(16)8
Avg EPS beat(16)5%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-1.42%
Revenue beat(4)1
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-12.95%
Max Revenue beat(4)5.66%
Revenue beat(8)3
Avg Revenue beat(8)-1.69%
Revenue beat(12)3
Avg Revenue beat(12)-2.99%
Revenue beat(16)5
Avg Revenue beat(16)-1.19%
PT rev (1m)-0.07%
PT rev (3m)2.95%
EPS NQ rev (1m)5.18%
EPS NQ rev (3m)5.52%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-5.19%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 11.18 | ||
| P/S | 2.42 | ||
| P/FCF | 10.9 | ||
| P/OCF | 10.9 | ||
| P/B | 1.78 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 5.38 |
EPS(TTM)1.59
EY7.74%
EPS(NY)1.84
Fwd EY8.94%
FCF(TTM)1.89
FCFY9.18%
OCF(TTM)1.89
OCFY9.18%
SpS8.49
BVpS11.57
TBVpS9.7
PEG (NY)N/A
PEG (5Y)1.66
Graham Number20.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 13.66% | ||
| ROCE | 16.16% | ||
| ROIC | 10.83% | ||
| ROICexc | 16.01% | ||
| ROICexgc | 19.96% | ||
| OM | 22.6% | ||
| PM (TTM) | 18.6% | ||
| GM | 25.99% | ||
| FCFM | 22.2% |
ROA(3y)9.37%
ROA(5y)8.59%
ROE(3y)13.81%
ROE(5y)12%
ROIC(3y)10.66%
ROIC(5y)9.47%
ROICexc(3y)14.74%
ROICexc(5y)13.19%
ROICexgc(3y)18.24%
ROICexgc(5y)16.71%
ROCE(3y)15.17%
ROCE(5y)13.22%
ROICexgc growth 3Y17.92%
ROICexgc growth 5Y-3.25%
ROICexc growth 3Y19.54%
ROICexc growth 5Y-0.78%
OM growth 3Y13.76%
OM growth 5Y1.52%
PM growth 3Y8.39%
PM growth 5Y-4.95%
GM growth 3Y12.65%
GM growth 5Y0.68%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.65% | ||
| Profit Quality | 119.35% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 4.34 |
F-Score6
WACC4.55%
ROIC/WACC2.38
Cap/Depr(3y)234.92%
Cap/Depr(5y)324.98%
Cap/Sales(3y)17.21%
Cap/Sales(5y)23.77%
Profit Quality(3y)66.3%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.97%
EPS 3Y24.74%
EPS 5Y7.77%
EPS Q2Q%6.9%
EPS Next Y-8.81%
EPS Next 2Y2.65%
EPS Next 3Y6.01%
EPS Next 5Y6.86%
Revenue 1Y (TTM)13.17%
Revenue growth 3Y13.35%
Revenue growth 5Y14.9%
Sales Q2Q%11.14%
Revenue Next Year12.91%
Revenue Next 2Y12.6%
Revenue Next 3Y12.19%
Revenue Next 5Y9.01%
EBIT growth 1Y-3.07%
EBIT growth 3Y28.95%
EBIT growth 5Y16.65%
EBIT Next Year24.25%
EBIT Next 3Y16.41%
EBIT Next 5Y13.21%
FCF growth 1Y-20.13%
FCF growth 3YN/A
FCF growth 5Y38.67%
OCF growth 1Y-20.13%
OCF growth 3Y16.54%
OCF growth 5Y12.64%
ZTO EXPRESS CAYMAN INC-ADR / ZTO FAQ
What is the ChartMill fundamental rating of ZTO EXPRESS CAYMAN INC-ADR (ZTO) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ZTO.
What is the valuation status of ZTO EXPRESS CAYMAN INC-ADR (ZTO) stock?
ChartMill assigns a valuation rating of 7 / 10 to ZTO EXPRESS CAYMAN INC-ADR (ZTO). This can be considered as Undervalued.
What is the profitability of ZTO stock?
ZTO EXPRESS CAYMAN INC-ADR (ZTO) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ZTO EXPRESS CAYMAN INC-ADR (ZTO) stock?
The Price/Earnings (PE) ratio for ZTO EXPRESS CAYMAN INC-ADR (ZTO) is 12.92 and the Price/Book (PB) ratio is 1.78.
What is the financial health of ZTO EXPRESS CAYMAN INC-ADR (ZTO) stock?
The financial health rating of ZTO EXPRESS CAYMAN INC-ADR (ZTO) is 7 / 10.