ZTO EXPRESS CAYMAN INC-ADR (ZTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZTO - US98980A1051 - ADR
21.68 USD
+0.67 (+3.19%)
21.68 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ZTO. ZTO was compared to 23 industry peers in the Air Freight & Logistics industry. ZTO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ZTO is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, ZTO could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
ZTO had positive earnings in the past year.
ZTO had a positive operating cash flow in the past year.
In the past 5 years ZTO has always been profitable.
Each year in the past 5 years ZTO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ZTO (9.76%) is better than 86.96% of its industry peers.
ZTO has a better Return On Equity (13.66%) than 78.26% of its industry peers.
ZTO has a Return On Invested Capital of 10.83%. This is amongst the best in the industry. ZTO outperforms 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 12.34%.
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's Profit Margin of 18.60% is amongst the best of the industry. ZTO outperforms 100.00% of its industry peers.
ZTO's Profit Margin has declined in the last couple of years.
The Operating Margin of ZTO (22.60%) is better than 100.00% of its industry peers.
ZTO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 25.99%, ZTO is doing good in the industry, outperforming 69.57% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ZTO is creating value.
Compared to 1 year ago, ZTO has less shares outstanding
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 4.49. This indicates that ZTO is financially healthy and has little risk of bankruptcy at the moment.
ZTO has a Altman-Z score of 4.49. This is in the better half of the industry: ZTO outperforms 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.
ZTO has a Debt to FCF ratio of 1.13. This is amongst the best in the industry. ZTO outperforms 95.65% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that ZTO is not too dependend on debt financing.
The Debt to Equity ratio of ZTO (0.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 4.49 |
ROIC/WACC2.34
WACC4.63%
2.3 Liquidity
ZTO has a Current 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's Current ratio of 1.38 is on the low side compared to the rest of the industry. ZTO is outperformed by 60.87% of its industry peers.
A Quick Ratio of 1.38 indicates that ZTO should not have too much problems paying its short term obligations.
ZTO's Quick ratio of 1.38 is in line compared to the rest of the industry. ZTO outperforms 43.48% of 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%.
The Revenue has been growing by 14.90% on average over the past years. This is quite good.
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
ZTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.86% yearly.
The Revenue is expected to grow by 9.01% on average over the next years. This is quite good.
EPS Next Y-4.36%
EPS Next 2Y3.99%
EPS Next 3Y6.85%
EPS Next 5Y6.86%
Revenue Next Year13.07%
Revenue Next 2Y12.22%
Revenue Next 3Y11.47%
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.
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
Based on the Price/Earnings ratio of 13.64, the valuation of ZTO can be described as correct.
Based on the Price/Earnings ratio, ZTO is valued cheaper than 82.61% of the companies in the same industry.
ZTO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.49.
A Price/Forward Earnings ratio of 11.49 indicates a reasonable valuation of ZTO.
ZTO's Price/Forward Earnings 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/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 11.49 |
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.
95.65% of the companies in the same industry are more expensive than ZTO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.49 | ||
| EV/EBITDA | 5.84 |
4.3 Compensation for Growth
The excellent profitability rating of ZTO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.76
EPS Next 2Y3.99%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
ZTO has a Yearly Dividend Yield of 3.08%. 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.
Compared to an average S&P500 Dividend Yield of 2.31, ZTO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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 2Y3.99%
EPS Next 3Y6.85%
21.68
+0.67 (+3.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners16.11%
Inst Owner Change-20.15%
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap17.15B
Revenue(TTM)47.51B
Net Income(TTM)8.84B
Analysts86.32
Price Target25.53 (17.76%)
Short Float %4.22%
Short Ratio11.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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)0.78%
PT rev (3m)2.95%
EPS NQ rev (1m)4.56%
EPS NQ rev (3m)5.52%
EPS NY rev (1m)3.63%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 11.49 | ||
| P/S | 2.55 | ||
| P/FCF | 11.49 | ||
| P/OCF | 11.49 | ||
| P/B | 1.87 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 5.84 |
EPS(TTM)1.59
EY7.33%
EPS(NY)1.89
Fwd EY8.7%
FCF(TTM)1.89
FCFY8.7%
OCF(TTM)1.89
OCFY8.7%
SpS8.49
BVpS11.57
TBVpS9.7
PEG (NY)N/A
PEG (5Y)1.76
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 | 4.49 |
F-Score6
WACC4.63%
ROIC/WACC2.34
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-4.36%
EPS Next 2Y3.99%
EPS Next 3Y6.85%
EPS Next 5Y6.86%
Revenue 1Y (TTM)13.17%
Revenue growth 3Y13.35%
Revenue growth 5Y14.9%
Sales Q2Q%11.14%
Revenue Next Year13.07%
Revenue Next 2Y12.22%
Revenue Next 3Y11.47%
Revenue Next 5Y9.01%
EBIT growth 1Y-3.07%
EBIT growth 3Y28.95%
EBIT growth 5Y16.65%
EBIT Next Year25.35%
EBIT Next 3Y15.83%
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 13.64 and the Price/Book (PB) ratio is 1.87.
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.