NYSE:ZTO qualifies as a high growth stock and is consolidating.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ZTO EXPRESS CAYMAN INC-ADR (NYSE:ZTO) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted ZTO EXPRESS CAYMAN INC-ADR showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Deciphering NYSE:ZTO's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ZTO boasts a 8 out of 10:

• 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.
• Looking at the last year, ZTO shows a quite strong growth in Revenue. The Revenue has grown by 13.18% in the last year.
• The Revenue has been growing by 22.05% on average over the past years. This is a very strong growth!
• ZTO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.55% yearly.
• ZTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.63% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Exploring NYSE:ZTO's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ZTO, the assigned 6 reflects its health status:

• An Altman-Z score of 4.76 indicates that ZTO is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.76, ZTO is in the better half of the industry, outperforming 75.00% 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.
• The Debt to FCF ratio of ZTO (1.61) is better than 68.75% of its industry peers.
• A Debt/Equity ratio of 0.25 indicates that ZTO is not too dependend on debt financing.
• ZTO has a better Debt to Equity ratio (0.25) than 68.75% of its industry peers.

Profitability Insights: NYSE:ZTO

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:ZTO, the assigned 7 is noteworthy for profitability:

• ZTO's Return On Assets of 10.13% is amongst the best of the industry. ZTO outperforms 81.25% of its industry peers.
• Looking at the Return On Equity, with a value of 14.86%, ZTO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 10.84%, ZTO is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
• The 3 year average ROIC (8.39%) for ZTO is below the current ROIC(10.84%), indicating increased profibility in the last year.
• ZTO's Profit Margin of 22.13% is amongst the best of the industry. ZTO outperforms 100.00% of its industry peers.
• ZTO has a better Operating Margin (25.21%) than 100.00% of its industry peers.
• With a decent Gross Margin value of 29.42%, ZTO is doing good in the industry, outperforming 62.50% of the companies in the same industry.

How does the Setup look for NYSE:ZTO

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:ZTO exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

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 24.00, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of ZTO for a complete fundamental analysis.

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.