ZTO EXPRESS CAYMAN INC-ADR (ZTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZTO - US98980A1051 - ADR
19.22 USD
+0.27 (+1.42%)
19.22 USD
0 (0%)
Overall ZTO gets a fundamental rating of 6 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ZTO very considerable for value 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.
In the past 5 years ZTO has always been profitable.
ZTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ZTO (9.21%) is better than 86.96% of its industry peers.
Looking at the Return On Equity, with a value of 13.57%, 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 11.40% is amongst the best of the industry. ZTO outperforms 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 3 year average ROIC (10.66%) for ZTO is below the current ROIC(11.40%), indicating increased profibility in the last year.
| 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
ZTO's Profit Margin of 18.81% 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.
ZTO's Operating Margin of 24.13% 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's Gross Margin of 27.48% is fine compared to the rest of the industry. ZTO outperforms 73.91% of its industry peers.
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
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.
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 3.66 indicates that ZTO is not in any danger for bankruptcy at the moment.
The Altman-Z score of ZTO (3.66) is better than 69.57% of its industry peers.
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.
ZTO's Debt to FCF ratio of 1.76 is amongst the best of the industry. ZTO outperforms 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.
ZTO has a Debt to Equity ratio of 0.17. This is comparable to the rest of the industry: ZTO outperforms 56.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 3.66 |
ROIC/WACC2.56
WACC4.45%
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.
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.
ZTO has a Quick ratio of 1.21. This is in the lower half of the industry: ZTO underperforms 65.22% 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 | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for ZTO have decreased by -7.33% in the last year.
The Earnings Per Share has been growing slightly by 7.77% on average over the past years.
The Revenue has grown by 15.26% in the past year. This is quite good.
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)-7.33%
EPS 3Y24.74%
EPS 5Y7.77%
EPS Q2Q%5.45%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y13.35%
Revenue growth 5Y14.9%
Sales Q2Q%11.03%
3.2 Future
The Earnings Per Share is expected to grow by 6.15% on average over the next years.
The Revenue is expected to grow by 8.28% 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 5Y6.15%
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.
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
A Price/Earnings ratio of 12.09 indicates a correct valuation of ZTO.
Based on the Price/Earnings ratio, ZTO is valued cheaper than 86.96% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, ZTO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.40, the valuation of ZTO can be described as reasonable.
Based on the Price/Forward Earnings ratio, ZTO is valued cheaper than 95.65% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. ZTO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZTO is valued cheaper than 95.65% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZTO indicates a rather cheap valuation: ZTO is cheaper than 95.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.37 | ||
| EV/EBITDA | 5.24 |
4.3 Compensation for Growth
ZTO has an outstanding profitability rating, which 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 3.39%.
ZTO's Dividend Yield is rather good when compared to the industry average which is at 3.54. 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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%
19.22
+0.27 (+1.42%)
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 Cap15.23B
Revenue(TTM)44.28B
Net Income(TTM)8.71B
Analysts86.67
Price Target25.53 (32.83%)
Short Float %4.28%
Short Ratio12.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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)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 | 12.09 | ||
| Fwd PE | 10.4 | ||
| P/S | 2.34 | ||
| P/FCF | 10.37 | ||
| P/OCF | 10.37 | ||
| P/B | 1.69 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 5.24 |
EPS(TTM)1.59
EY8.27%
EPS(NY)1.85
Fwd EY9.62%
FCF(TTM)1.85
FCFY9.64%
OCF(TTM)1.85
OCFY9.64%
SpS8.22
BVpS11.39
TBVpS9.54
PEG (NY)N/A
PEG (5Y)1.56
Graham Number20.18
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
WACC4.45%
ROIC/WACC2.56
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)-7.33%
EPS 3Y24.74%
EPS 5Y7.77%
EPS Q2Q%5.45%
EPS Next Y-8.81%
EPS Next 2Y2.65%
EPS Next 3Y6.01%
EPS Next 5Y6.15%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y13.35%
Revenue growth 5Y14.9%
Sales Q2Q%11.03%
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 12.09 and the Price/Book (PB) ratio is 1.69.
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.