ZTO EXPRESS CAYMAN INC-ADR (ZTO) Stock Fundamental Analysis
USA - NYSE:ZTO - US98980A1051 - ADR
19 USD
+0.07 (+0.37%)
Overall ZTO gets a fundamental rating of 6 out of 10. We evaluated ZTO 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 may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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 9.21%, ZTO belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
ZTO's Return On Equity of 13.57% is fine compared to the rest of the industry. ZTO outperforms 78.26% of its industry peers.
ZTO has a better Return On Invested Capital (11.40%) than 82.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZTO is in line with the industry average of 11.55%.
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
The Profit Margin of ZTO (18.81%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ZTO has declined.
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.
With a decent Gross Margin value of 27.48%, ZTO is doing good in the industry, outperforming 73.91% 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 | 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
ZTO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ZTO has less shares outstanding
ZTO has more shares outstanding than it did 5 years ago.
ZTO has a worse debt/assets ratio than last year.
2.2 Solvency
ZTO has an Altman-Z score of 3.66. This indicates that ZTO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.66, ZTO is doing good in the industry, outperforming 69.57% 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.
The Debt to FCF ratio of ZTO (1.76) is better than 91.30% of its industry peers.
ZTO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, ZTO is in line with its industry, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 3.66 |
ROIC/WACC2.57
WACC4.43%
2.3 Liquidity
A Current Ratio of 1.21 indicates that ZTO should not have too much problems paying its short term obligations.
ZTO has a worse Current ratio (1.21) than 73.91% of its industry peers.
A Quick Ratio of 1.21 indicates that ZTO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.21, ZTO is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
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 | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
ZTO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.22%.
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.
ZTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.70%.
ZTO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.90% yearly.
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
Based on estimates for the next years, ZTO will show a small growth in Earnings Per Share. The EPS will grow by 6.15% on average per year.
ZTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.28% yearly.
EPS Next Y-8.81%
EPS Next 2Y2.65%
EPS Next 3Y6.01%
EPS Next 5Y6.15%
Revenue Next Year12.91%
Revenue Next 2Y12.6%
Revenue Next 3Y12.19%
Revenue Next 5Y8.28%
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.
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
With a Price/Earnings ratio of 12.10, ZTO is valued correctly.
86.96% of the companies in the same industry are more expensive than ZTO, based on the Price/Earnings ratio.
ZTO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.51.
ZTO is valuated reasonably with a Price/Forward Earnings ratio of 10.27.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZTO indicates a rather cheap valuation: ZTO is cheaper than 95.65% of the companies listed 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 | 10.25 | ||
| EV/EBITDA | 5.23 |
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 2Y2.65%
EPS Next 3Y6.01%
5. Dividend
5.1 Amount
ZTO has a Yearly Dividend Yield of 3.36%.
Compared to an average industry Dividend Yield of 3.54, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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 (11/19/2025, 10:32:43 AM)
19
+0.07 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners14.67%
Inst Owner Change-19.92%
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap15.06B
Revenue(TTM)46.32B
Net Income(TTM)8.71B
Analysts86.67
Price Target25.84 (36%)
Short Float %4.28%
Short Ratio12.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Yearly Dividend1.04
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)1.14%
PT rev (3m)5.44%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)1.4%
EPS NY rev (1m)0.8%
EPS NY rev (3m)-16.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)-2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 10.27 | ||
| P/S | 2.31 | ||
| P/FCF | 10.25 | ||
| P/OCF | 10.25 | ||
| P/B | 1.67 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)1.57
EY8.26%
EPS(NY)1.85
Fwd EY9.73%
FCF(TTM)1.85
FCFY9.76%
OCF(TTM)1.85
OCFY9.76%
SpS8.22
BVpS11.39
TBVpS9.54
PEG (NY)N/A
PEG (5Y)1.56
Graham Number20.06
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 | 3.66 |
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-8.81%
EPS Next 2Y2.65%
EPS Next 3Y6.01%
EPS Next 5Y6.15%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y13.35%
Revenue growth 5Y14.9%
Sales Q2Q%10.31%
Revenue Next Year12.91%
Revenue Next 2Y12.6%
Revenue Next 3Y12.19%
Revenue Next 5Y8.28%
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 12.1 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.