ZTO EXPRESS CAYMAN INC-ADR (ZTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZTO - US98980A1051 - ADR
20.45 USD
-0.35 (-1.68%)
ZTO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 23 industry peers in the Air Freight & Logistics industry. ZTO gets an excellent profitability rating and is at the same time showing great financial health properties. ZTO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ZTO suitable for value and quality 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.
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
Looking at the Return On Assets, with a value of 9.76%, ZTO belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.66%, ZTO is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
ZTO's Return On Invested Capital of 10.83% 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 11.50%.
The last Return On Invested Capital (10.83%) for ZTO is above the 3 year average (10.66%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 18.60%, 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 Operating Margin of 22.60%. This is amongst the best in the industry. ZTO outperforms 100.00% of its industry peers.
ZTO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.99%, ZTO is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ZTO is creating value.
ZTO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ZTO has been increased compared to 5 years ago.
The debt/assets ratio for ZTO is higher compared to a year ago.
2.2 Solvency
ZTO has an Altman-Z score of 4.38. This indicates that ZTO is financially healthy and has little risk of bankruptcy at the moment.
ZTO has a better Altman-Z score (4.38) than 73.91% of its industry peers.
The Debt to FCF ratio of ZTO is 1.13, which is an excellent value as it means it would take ZTO, only 1.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.13, ZTO belongs to the top 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.
Looking at the Debt to Equity ratio, with a value of 0.18, ZTO is in line with its industry, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 4.38 |
ROIC/WACC2.37
WACC4.57%
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.
With a Current ratio value of 1.38, ZTO is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
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 of 1.38. This is comparable 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.
Looking at the last year, ZTO shows a quite strong growth in Revenue. The Revenue has grown by 13.17% in the last year.
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
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-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 12.86, which indicates a correct valuation of ZTO.
Based on the Price/Earnings ratio, ZTO is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.11, ZTO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.13, the valuation of ZTO can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZTO indicates a rather cheap valuation: ZTO is cheaper than 95.65% of the companies listed in the same industry.
ZTO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 11.13 |
4.2 Price Multiples
95.65% of the companies in the same industry are more expensive than ZTO, based on the Enterprise Value to EBITDA ratio.
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 | 10.85 | ||
| EV/EBITDA | 5.48 |
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
With a Yearly Dividend Yield of 3.13%, 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 3.45. 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 2.32.
| 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%
NYSE:ZTO (12/2/2025, 11:09:53 AM)
20.45
-0.35 (-1.68%)
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 Cap16.18B
Revenue(TTM)47.51B
Net Income(TTM)8.84B
Analysts86.67
Price Target25.53 (24.84%)
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 | 12.86 | ||
| Fwd PE | 11.13 | ||
| P/S | 2.41 | ||
| P/FCF | 10.85 | ||
| P/OCF | 10.85 | ||
| P/B | 1.77 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 5.48 |
EPS(TTM)1.59
EY7.78%
EPS(NY)1.84
Fwd EY8.99%
FCF(TTM)1.89
FCFY9.22%
OCF(TTM)1.89
OCFY9.22%
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 | 4.38 |
F-Score6
WACC4.57%
ROIC/WACC2.37
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 12.86 and the Price/Book (PB) ratio is 1.77.
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.