Exploring the Growth Potential of NYSE:ZTO as It Nears a Breakout.

In this article we will dive into ZTO EXPRESS CAYMAN INC-ADR (NYSE:ZTO) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ZTO EXPRESS CAYMAN INC-ADR showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Looking at the Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:ZTO, the assigned 8 reflects its growth potential:

• ZTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.39%, which is quite impressive.
• The Earnings Per Share has been growing by 13.52% on average over the past years. This is quite good.
• The Revenue has grown by 13.18% in the past year. This is quite good.
• Measured over the past years, ZTO shows a very strong growth in Revenue. The Revenue has been growing by 22.05% on average per year.
• The Earnings Per Share is expected to grow by 19.55% on average over the next years. This is quite good.
• Based on estimates for the next years, ZTO will show a quite strong growth in Revenue. The Revenue will grow by 14.63% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

A Closer Look at Health for NYSE:ZTO

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ZTO was assigned a score of 6 for health:

• An Altman-Z score of 4.80 indicates that ZTO is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.80, ZTO belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
• ZTO has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
• ZTO's Debt to FCF ratio of 1.61 is fine compared to the rest of the industry. ZTO outperforms 68.75% of its industry peers.
• A Debt/Equity ratio of 0.25 indicates that ZTO is not too dependend on debt financing.
• ZTO's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. ZTO outperforms 68.75% of its industry peers.
• ZTO has a better Quick ratio (1.31) than 62.50% of its industry peers.

Profitability Examination for NYSE:ZTO

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ZTO has earned a 7 out of 10:

• ZTO has a Return On Assets of 10.13%. This is amongst the best in the industry. ZTO outperforms 81.25% of its industry peers.
• ZTO's Return On Equity of 14.86% is fine compared to the rest of the industry. ZTO outperforms 62.50% of its industry peers.
• ZTO has a Return On Invested Capital of 10.84%. This is in the better half of the industry: ZTO outperforms 68.75% of its industry peers.
• The last Return On Invested Capital (10.84%) for ZTO is above the 3 year average (8.39%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 22.13%, ZTO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• With an excellent Operating Margin value of 25.21%, ZTO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• ZTO has a Gross Margin of 29.42%. This is in the better half of the industry: ZTO outperforms 68.75% of its industry peers.

How does the Setup look for NYSE:ZTO

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:ZTO is 7:

ZTO has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 24.12, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of ZTO contains the most current fundamental analsysis.

Our latest full technical report of ZTO contains the most current technical analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.