ZALANDO SE (ZAL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ZAL - DE000ZAL1111 - Common Stock
23.96 EUR
-1.03 (-4.12%)
Taking everything into account, ZAL scores 5 out of 10 in our fundamental rating. ZAL was compared to 61 industry peers in the Specialty Retail industry. Both the profitability and the financial health of ZAL get a neutral evaluation. Nothing too spectacular is happening here. ZAL is growing strongly while it is still valued neutral. This is a good combination! With these ratings, ZAL could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- ZAL had positive earnings in the past year.
- In the past year ZAL had a positive cash flow from operations.
- ZAL had positive earnings in each of the past 5 years.
- Each year in the past 5 years ZAL had a positive operating cash flow.
1.2 Ratios
- ZAL has a Return On Assets (2.66%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 8.44%, ZAL is in the better half of the industry, outperforming 63.93% of the companies in the same industry.
- ZAL has a Return On Invested Capital (5.47%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ZAL is significantly below the industry average of 10.05%.
- The last Return On Invested Capital (5.47%) for ZAL is above the 3 year average (3.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 8.44% | ||
| ROIC | 5.47% |
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
- The Profit Margin of ZAL (2.06%) is comparable to the rest of the industry.
- ZAL's Profit Margin has improved in the last couple of years.
- ZAL's Operating Margin of 3.30% is in line compared to the rest of the industry. ZAL outperforms 52.46% of its industry peers.
- In the last couple of years the Operating Margin of ZAL has grown nicely.
- ZAL has a Gross Margin of 40.37%. This is in the better half of the industry: ZAL outperforms 60.66% of its industry peers.
- ZAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.3% | ||
| PM (TTM) | 2.06% | ||
| GM | 40.37% |
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.
- ZAL has less shares outstanding than it did 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 2.33. 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 Altman-Z score (2.33) which is in line with its industry peers.
- ZAL has a debt to FCF ratio of 3.63. This is a good value and a sign of high solvency as ZAL would need 3.63 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.63, ZAL is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
- A Debt/Equity ratio of 0.44 indicates that ZAL is not too dependend on debt financing.
- The Debt to Equity ratio of ZAL (0.44) is better than 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.84
WACC6.49%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that ZAL should not have too much problems paying its short term obligations.
- ZAL has a Current ratio (1.12) which is in line with its industry peers.
- ZAL has a Quick Ratio of 1.12. This is a bad value and indicates that ZAL is not financially healthy enough and could expect problems in meeting its short term obligations.
- ZAL's Quick ratio of 0.59 is in line compared to the rest of the industry. ZAL outperforms 49.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- ZAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.72%, which is quite good.
- ZAL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.33% yearly.
- ZAL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.06%.
- Measured over the past years, ZAL shows a quite strong growth in Revenue. The Revenue has been growing by 10.28% on average per year.
EPS 1Y (TTM)17.72%
EPS 3Y2.91%
EPS 5Y23.33%
EPS Q2Q%-64.71%
Revenue 1Y (TTM)12.06%
Revenue growth 3Y0.7%
Revenue growth 5Y10.28%
Sales Q2Q%26.46%
3.2 Future
- The Earnings Per Share is expected to grow by 26.63% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 10.27% on average over the next years. This is quite good.
EPS Next Y20.6%
EPS Next 2Y25.64%
EPS Next 3Y24.54%
EPS Next 5Y26.63%
Revenue Next Year16.7%
Revenue Next 2Y15.08%
Revenue Next 3Y11.96%
Revenue Next 5Y10.27%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.76, which means the current valuation is very expensive for ZAL.
- ZAL's Price/Earnings ratio is a bit cheaper when compared to the industry. ZAL is cheaper than 63.93% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. ZAL is around the same levels.
- ZAL is valuated correctly with a Price/Forward Earnings ratio of 15.65.
- 65.57% of the companies in the same industry are more expensive than ZAL, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. ZAL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 15.65 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZAL is valued a bit cheaper than 60.66% of the companies in the same industry.
- ZAL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.94 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
- ZAL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ZAL may justify a higher PE ratio.
- A more expensive valuation may be justified as ZAL's earnings are expected to grow with 24.54% in the coming years.
PEG (NY)1.25
PEG (5Y)1.1
EPS Next 2Y25.64%
EPS Next 3Y24.54%
5. Dividend
5.1 Amount
- ZAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ZALANDO SE / ZAL.DE FAQ
Can you provide the ChartMill fundamental rating for ZALANDO SE?
ChartMill assigns a fundamental rating of 5 / 10 to ZAL.DE.
Can you provide the valuation status for ZALANDO SE?
ChartMill assigns a valuation rating of 5 / 10 to ZALANDO SE (ZAL.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for ZALANDO SE?
ZALANDO SE (ZAL.DE) has a profitability rating of 6 / 10.
What is the valuation of ZALANDO SE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ZALANDO SE (ZAL.DE) is 25.76 and the Price/Book (PB) ratio is 2.23.
What is the financial health of ZALANDO SE (ZAL.DE) stock?
The financial health rating of ZALANDO SE (ZAL.DE) is 5 / 10.