ZALANDO SE (ZAL.DE) Stock Fundamental Analysis
Europe - FRA:ZAL - DE000ZAL1111 - Common Stock
26.28 EUR
-0.67 (-2.49%)
We assign a fundamental rating of 6 out of 10 to ZAL. ZAL was compared to 53 industry peers in the Specialty Retail industry. While ZAL has a great profitability rating, there are some minor concerns on its financial health. ZAL is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make ZAL a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year ZAL was profitable.
ZAL had a positive operating cash flow in the past year.
ZAL had positive earnings in each of the past 5 years.
ZAL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZAL has a better Return On Assets (3.33%) than 67.92% of its industry peers.
Looking at the Return On Equity, with a value of 9.70%, ZAL is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.07%, ZAL is doing good in the industry, outperforming 62.26% of the companies in the same industry.
ZAL had an Average Return On Invested Capital over the past 3 years of 3.34%. This is significantly below the industry average of 9.49%.
The 3 year average ROIC (3.34%) for ZAL is below the current ROIC(6.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 9.7% | ||
| ROIC | 6.07% |
ROA(3y)1.48%
ROA(5y)2.26%
ROE(3y)4.56%
ROE(5y)6.95%
ROIC(3y)3.34%
ROIC(5y)4.59%
1.3 Margins
Looking at the Profit Margin, with a value of 2.47%, ZAL is in the better half of the industry, outperforming 64.15% of the companies in the same industry.
In the last couple of years the Profit Margin of ZAL has grown nicely.
ZAL's Operating Margin of 3.68% is in line compared to the rest of the industry. ZAL outperforms 52.83% of its industry peers.
ZAL's Operating Margin has improved in the last couple of years.
ZAL's Gross Margin of 40.66% is in line compared to the rest of the industry. ZAL outperforms 54.72% of its industry peers.
ZAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.68% | ||
| PM (TTM) | 2.47% | ||
| GM | 40.66% |
OM growth 3Y-2.26%
OM growth 5Y7.72%
PM growth 3Y1.6%
PM growth 5Y9.08%
GM growth 3Y-0.88%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZAL is destroying value.
The number of shares outstanding for ZAL has been reduced compared to 1 year ago.
Compared to 5 years ago, ZAL has more shares outstanding
The debt/assets ratio for ZAL has been reduced compared to a year ago.
2.2 Solvency
ZAL has an Altman-Z score of 2.98. This is not the best score and indicates that ZAL is in the grey zone with still only limited risk for bankruptcy at the moment.
ZAL has a better Altman-Z score (2.98) than 79.25% of its industry peers.
ZAL has a debt to FCF ratio of 7.83. This is a slightly negative value and a sign of low solvency as ZAL would need 7.83 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.83, ZAL perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
ZAL has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
ZAL's Debt to Equity ratio of 0.40 is fine compared to the rest of the industry. ZAL outperforms 69.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 7.83 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.96
WACC6.31%
2.3 Liquidity
ZAL has a Current Ratio of 1.38. This is a normal value and indicates that ZAL is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.38, ZAL is doing good in the industry, outperforming 67.92% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that ZAL may have some problems paying its short term obligations.
The Quick ratio of ZAL (0.98) is better than 81.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
ZAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.27%, which is quite impressive.
The Earnings Per Share has been growing by 23.33% on average over the past years. This is a very strong growth
ZAL shows a small growth in Revenue. In the last year, the Revenue has grown by 7.12%.
ZAL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.28% yearly.
EPS 1Y (TTM)76.27%
EPS 3Y2.91%
EPS 5Y23.33%
EPS Q2Q%0%
Revenue 1Y (TTM)7.12%
Revenue growth 3Y0.7%
Revenue growth 5Y10.28%
Sales Q2Q%7.26%
3.2 Future
Based on estimates for the next years, ZAL will show a very strong growth in Earnings Per Share. The EPS will grow by 26.18% on average per year.
The Revenue is expected to grow by 10.18% on average over the next years. This is quite good.
EPS Next Y31.4%
EPS Next 2Y26.24%
EPS Next 3Y24.32%
EPS Next 5Y26.18%
Revenue Next Year14.51%
Revenue Next 2Y13.24%
Revenue Next 3Y10.53%
Revenue Next 5Y10.18%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ZAL is valuated quite expensively with a Price/Earnings ratio of 25.27.
Based on the Price/Earnings ratio, ZAL is valued a bit cheaper than 62.26% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.32, ZAL is valued at the same level.
Based on the Price/Forward Earnings ratio of 17.00, the valuation of ZAL can be described as correct.
Based on the Price/Forward Earnings ratio, ZAL is valued a bit cheaper than 64.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ZAL to the average of the S&P500 Index (22.89), we can say ZAL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.27 | ||
| Fwd PE | 17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZAL is valued a bit cheaper than the industry average as 64.15% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as ZAL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.28 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ZAL may justify a higher PE ratio.
ZAL's earnings are expected to grow with 24.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)1.08
EPS Next 2Y26.24%
EPS Next 3Y24.32%
5. Dividend
5.1 Amount
No dividends for ZAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ZAL (9/26/2025, 7:00:00 PM)
26.28
-0.67 (-2.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners62.05%
Inst Owner ChangeN/A
Ins Owners10.09%
Ins Owner ChangeN/A
Market Cap6.94B
Analysts78.13
Price Target37.46 (42.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)444.88%
Min EPS beat(2)-2.31%
Max EPS beat(2)892.08%
EPS beat(4)3
Avg EPS beat(4)227.19%
Min EPS beat(4)-2.31%
Max EPS beat(4)892.08%
EPS beat(8)4
Avg EPS beat(8)70.96%
EPS beat(12)6
Avg EPS beat(12)0.99%
EPS beat(16)7
Avg EPS beat(16)-20.02%
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)0.23%
Min Revenue beat(4)-1.22%
Max Revenue beat(4)1.19%
Revenue beat(8)3
Avg Revenue beat(8)-0.45%
Revenue beat(12)4
Avg Revenue beat(12)-0.51%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)-3.81%
PT rev (3m)-5.46%
EPS NQ rev (1m)-17.65%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)6.01%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.15%
Revenue NY rev (3m)7.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.27 | ||
| Fwd PE | 17 | ||
| P/S | 0.63 | ||
| P/FCF | 32.28 | ||
| P/OCF | 16.72 | ||
| P/B | 2.49 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 7.41 |
EPS(TTM)1.04
EY3.96%
EPS(NY)1.55
Fwd EY5.88%
FCF(TTM)0.81
FCFY3.1%
OCF(TTM)1.57
OCFY5.98%
SpS41.42
BVpS10.57
TBVpS8.94
PEG (NY)0.8
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 9.7% | ||
| ROCE | 9.91% | ||
| ROIC | 6.07% | ||
| ROICexc | 17.63% | ||
| ROICexgc | 25.4% | ||
| OM | 3.68% | ||
| PM (TTM) | 2.47% | ||
| GM | 40.66% | ||
| FCFM | 1.97% |
ROA(3y)1.48%
ROA(5y)2.26%
ROE(3y)4.56%
ROE(5y)6.95%
ROIC(3y)3.34%
ROIC(5y)4.59%
ROICexc(3y)9.52%
ROICexc(5y)14.27%
ROICexgc(3y)13.4%
ROICexgc(5y)19.23%
ROCE(3y)5.45%
ROCE(5y)7.5%
ROICexcg growth 3Y8.96%
ROICexcg growth 5Y22.36%
ROICexc growth 3Y2.72%
ROICexc growth 5Y17.49%
OM growth 3Y-2.26%
OM growth 5Y7.72%
PM growth 3Y1.6%
PM growth 5Y9.08%
GM growth 3Y-0.88%
GM growth 5Y-0.89%
F-Score7
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 7.83 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 55.44% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.37% | ||
| Profit Quality | 79.43% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.98 |
F-Score7
WACC6.31%
ROIC/WACC0.96
Cap/Depr(3y)86.74%
Cap/Depr(5y)104.05%
Cap/Sales(3y)2.65%
Cap/Sales(5y)2.86%
Profit Quality(3y)549.88%
Profit Quality(5y)378.62%
High Growth Momentum
Growth
EPS 1Y (TTM)76.27%
EPS 3Y2.91%
EPS 5Y23.33%
EPS Q2Q%0%
EPS Next Y31.4%
EPS Next 2Y26.24%
EPS Next 3Y24.32%
EPS Next 5Y26.18%
Revenue 1Y (TTM)7.12%
Revenue growth 3Y0.7%
Revenue growth 5Y10.28%
Sales Q2Q%7.26%
Revenue Next Year14.51%
Revenue Next 2Y13.24%
Revenue Next 3Y10.53%
Revenue Next 5Y10.18%
EBIT growth 1Y40.95%
EBIT growth 3Y-1.58%
EBIT growth 5Y18.79%
EBIT Next Year114.38%
EBIT Next 3Y39.75%
EBIT Next 5Y37.01%
FCF growth 1Y-69.35%
FCF growth 3Y16.44%
FCF growth 5Y84.9%
OCF growth 1Y-58.04%
OCF growth 3Y2.01%
OCF growth 5Y14.86%