ZTO EXPRESS CAYMAN INC-ADR (ZTO) Stock Fundamental Analysis
USA - NYSE:ZTO - US98980A1051 - ADR
18.9 USD
+0.01 (+0.05%)
18.9 USD
0 (0%)
ZTO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 23 industry peers in the Air Freight & Logistics industry. ZTO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on ZTO. With these ratings, ZTO could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year ZTO was profitable.
ZTO had a positive operating cash flow in the past year.
ZTO had positive earnings in each of the past 5 years.
Each year in the past 5 years ZTO had a positive operating cash flow.
1.2 Ratios
ZTO's Return On Assets of 9.21% is amongst the best of the industry. ZTO outperforms 86.96% of its industry peers.
With a decent Return On Equity value of 13.57%, ZTO is doing good in the industry, outperforming 78.26% of the companies in the same industry.
ZTO's Return On Invested Capital of 11.40% is amongst the best of the industry. ZTO outperforms 82.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZTO is in line with the industry average of 11.58%.
The last Return On Invested Capital (11.40%) for ZTO is above the 3 year average (10.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 13.57% | ||
| ROIC | 11.4% |
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
Looking at the Profit Margin, with a value of 18.81%, ZTO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ZTO's Profit Margin has declined in the last couple of years.
ZTO has a better Operating Margin (24.13%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of ZTO has grown nicely.
Looking at the Gross Margin, with a value of 27.48%, ZTO is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
In the last couple of years the Gross Margin of ZTO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.13% | ||
| PM (TTM) | 18.81% | ||
| GM | 27.48% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ZTO is creating value.
The number of shares outstanding for ZTO has been reduced compared to 1 year ago.
The number of shares outstanding for ZTO has been increased compared to 5 years ago.
ZTO has a worse debt/assets ratio than last year.
2.2 Solvency
ZTO has an Altman-Z score of 3.67. This indicates that ZTO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.67, ZTO is doing good in the industry, outperforming 78.26% of the companies in the same industry.
ZTO has a debt to FCF ratio of 1.76. This is a very positive value and a sign of high solvency as it would only need 1.76 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.76, ZTO belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
ZTO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.17, ZTO is doing good in the industry, outperforming 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 3.67 |
ROIC/WACC2.57
WACC4.43%
2.3 Liquidity
ZTO has a Current Ratio of 1.21. This is a normal value and indicates that ZTO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.21, ZTO is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
ZTO has a Quick Ratio of 1.21. This is a normal value and indicates that ZTO is financially healthy and should not expect problems in meeting its short term obligations.
ZTO's Quick ratio of 1.21 is on the low side compared to the rest of the industry. ZTO is outperformed by 65.22% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for ZTO have decreased by -8.22% in the last year.
Measured over the past 5 years, ZTO shows a small growth in Earnings Per Share. The EPS has been growing by 7.77% on average per year.
Looking at the last year, ZTO shows a quite strong growth in Revenue. The Revenue has grown by 14.70% in the last year.
The Revenue has been growing by 14.90% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.22%
EPS 3Y24.74%
EPS 5Y7.77%
EPS Q2Q%-45.01%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y13.35%
Revenue growth 5Y14.9%
Sales Q2Q%10.31%
3.2 Future
The Earnings Per Share is expected to grow by 6.14% on average over the next years.
Based on estimates for the next years, ZTO will show a quite strong growth in Revenue. The Revenue will grow by 8.27% on average per year.
EPS Next Y-9%
EPS Next 2Y2.57%
EPS Next 3Y5.96%
EPS Next 5Y6.14%
Revenue Next Year12.4%
Revenue Next 2Y12.41%
Revenue Next 3Y12.08%
Revenue Next 5Y8.27%
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 decreasing.
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
Based on the Price/Earnings ratio of 12.12, the valuation of ZTO can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ZTO indicates a rather cheap valuation: ZTO is cheaper than 86.96% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.13, ZTO is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.32, the valuation of ZTO can be described as very reasonable.
95.65% of the companies in the same industry are more expensive than ZTO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ZTO to the average of the S&P500 Index (22.35), we can say ZTO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 10.32 |
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.
ZTO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZTO is cheaper than 95.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 5.28 |
4.3 Compensation for Growth
The excellent profitability rating of ZTO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y2.57%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.54%, ZTO has a reasonable but not impressive dividend return.
ZTO's Dividend Yield is rather good when compared to the industry average which is at 3.62. ZTO pays more dividend than 91.30% of the companies in the same industry.
ZTO's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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 2Y2.57%
EPS Next 3Y5.96%
18.9
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners14.67%
Inst Owner Change0.2%
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap15.07B
Revenue(TTM)46.32B
Net Income(TTM)8.71B
Analysts86.67
Price Target25.33 (34.02%)
Short Float %4.11%
Short Ratio10.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend1.03
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.1%
Min EPS beat(2)-19.32%
Max EPS beat(2)-14.87%
EPS beat(4)1
Avg EPS beat(4)-12.24%
Min EPS beat(4)-19.32%
Max EPS beat(4)0.11%
EPS beat(8)3
Avg EPS beat(8)-5.08%
EPS beat(12)6
Avg EPS beat(12)0.01%
EPS beat(16)7
Avg EPS beat(16)3.17%
Revenue beat(2)0
Avg Revenue beat(2)-8.38%
Min Revenue beat(2)-12.95%
Max Revenue beat(2)-3.81%
Revenue beat(4)2
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-12.95%
Max Revenue beat(4)5.66%
Revenue beat(8)3
Avg Revenue beat(8)-2.71%
Revenue beat(12)4
Avg Revenue beat(12)-1.99%
Revenue beat(16)5
Avg Revenue beat(16)-1.5%
PT rev (1m)-0.53%
PT rev (3m)3.4%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.8%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-17.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 10.32 | ||
| P/S | 2.32 | ||
| P/FCF | 10.28 | ||
| P/OCF | 10.28 | ||
| P/B | 1.67 | ||
| P/tB | 2 | ||
| EV/EBITDA | 5.28 |
EPS(TTM)1.56
EY8.25%
EPS(NY)1.83
Fwd EY9.69%
FCF(TTM)1.84
FCFY9.73%
OCF(TTM)1.84
OCFY9.73%
SpS8.15
BVpS11.3
TBVpS9.46
PEG (NY)N/A
PEG (5Y)1.56
Graham Number19.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 13.57% | ||
| ROCE | 16.89% | ||
| ROIC | 11.4% | ||
| ROICexc | 17.36% | ||
| ROICexgc | 21.86% | ||
| OM | 24.13% | ||
| PM (TTM) | 18.81% | ||
| GM | 27.48% | ||
| FCFM | 22.56% |
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-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.76 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.59% | ||
| Profit Quality | 119.96% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 3.67 |
F-Score5
WACC4.43%
ROIC/WACC2.57
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)-8.22%
EPS 3Y24.74%
EPS 5Y7.77%
EPS Q2Q%-45.01%
EPS Next Y-9%
EPS Next 2Y2.57%
EPS Next 3Y5.96%
EPS Next 5Y6.14%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y13.35%
Revenue growth 5Y14.9%
Sales Q2Q%10.31%
Revenue Next Year12.4%
Revenue Next 2Y12.41%
Revenue Next 3Y12.08%
Revenue Next 5Y8.27%
EBIT growth 1Y4.83%
EBIT growth 3Y28.95%
EBIT growth 5Y16.65%
EBIT Next Year24.25%
EBIT Next 3Y16.41%
EBIT Next 5Y13.21%
FCF growth 1Y21.64%
FCF growth 3YN/A
FCF growth 5Y38.67%
OCF growth 1Y-20.19%
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 6 / 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 12.12 and the Price/Book (PB) ratio is 1.67.
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.