ERMENEGILDO ZEGNA NV (ZGN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZGN - NL0015000PB5 - Common Stock
9.56 USD
-1.46 (-13.25%)
9.57 USD
+0.01 (+0.1%)
Taking everything into account, ZGN scores 4 out of 10 in our fundamental rating. ZGN was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. ZGN has a medium profitability rating, but doesn't score so well on its financial health evaluation. ZGN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ZGN had positive earnings in the past year.
- ZGN had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: ZGN reported negative net income in multiple years.
- Each year in the past 5 years ZGN had a positive operating cash flow.
1.2 Ratios
- ZGN has a Return On Assets (3.49%) which is comparable to the rest of the industry.
- ZGN has a Return On Equity of 10.74%. This is in the better half of the industry: ZGN outperforms 66.67% of its industry peers.
- ZGN has a Return On Invested Capital of 6.40%. This is comparable to the rest of the industry: ZGN outperforms 53.33% of its industry peers.
- ZGN had an Average Return On Invested Capital over the past 3 years of 7.69%. This is below the industry average of 11.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 10.74% | ||
| ROIC | 6.4% |
ROA(3y)3.08%
ROA(5y)0.32%
ROE(3y)10.15%
ROE(5y)-0.11%
ROIC(3y)7.69%
ROIC(5y)N/A
1.3 Margins
- ZGN has a Profit Margin of 4.97%. This is in the better half of the industry: ZGN outperforms 73.33% of its industry peers.
- In the last couple of years the Profit Margin of ZGN has grown nicely.
- ZGN has a Operating Margin of 8.59%. This is in the better half of the industry: ZGN outperforms 75.56% of its industry peers.
- In the last couple of years the Operating Margin of ZGN has grown nicely.
- Looking at the Gross Margin, with a value of 67.14%, ZGN belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
- In the last couple of years the Gross Margin of ZGN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.59% | ||
| PM (TTM) | 4.97% | ||
| GM | 67.14% |
OM growth 3YN/A
OM growth 5Y2.91%
PM growth 3YN/A
PM growth 5Y19.25%
GM growth 3Y-2.37%
GM growth 5Y-1.14%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ZGN is creating some value.
- ZGN has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for ZGN has been increased compared to 5 years ago.
- Compared to 1 year ago, ZGN has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of ZGN is 7.14, which is on the high side as it means it would take ZGN, 7.14 years of fcf income to pay off all of its debts.
- ZGN's Debt to FCF ratio of 7.14 is in line compared to the rest of the industry. ZGN outperforms 48.89% of its industry peers.
- ZGN has a Debt/Equity ratio of 0.82. This is a neutral value indicating ZGN is somewhat dependend on debt financing.
- ZGN's Debt to Equity ratio of 0.82 is on the low side compared to the rest of the industry. ZGN is outperformed by 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.9
WACC7.13%
2.3 Liquidity
- A Current Ratio of 1.42 indicates that ZGN should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.42, ZGN is doing worse than 77.78% of the companies in the same industry.
- A Quick Ratio of 0.79 indicates that ZGN may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.79, ZGN is doing worse than 82.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The earnings per share for ZGN have decreased by -4.55% in the last year.
- ZGN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.50% yearly.
- Looking at the last year, ZGN shows a decrease in Revenue. The Revenue has decreased by -2.42% in the last year.
- ZGN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.06% yearly.
EPS 1Y (TTM)-4.55%
EPS 3YN/A
EPS 5Y27.5%
EPS Q2Q%71.54%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y14.63%
Revenue growth 5Y8.06%
Sales Q2Q%86.67%
3.2 Future
- Based on estimates for the next years, ZGN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.00% on average per year.
- The Revenue is expected to grow by 4.46% on average over the next years.
EPS Next Y1.37%
EPS Next 2Y8.06%
EPS Next 3Y13.9%
EPS Next 5Y15%
Revenue Next Year-1.48%
Revenue Next 2Y1.62%
Revenue Next 3Y3.74%
Revenue Next 5Y4.46%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.23, which indicates a rather expensive current valuation of ZGN.
- The rest of the industry has a similar Price/Earnings ratio as ZGN.
- ZGN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.47.
- Based on the Price/Forward Earnings ratio of 20.27, the valuation of ZGN can be described as rather expensive.
- ZGN's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of ZGN to the average of the S&P500 Index (24.26), we can say ZGN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.23 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZGN indicates a somewhat cheap valuation: ZGN is cheaper than 77.78% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ZGN is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.42 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ZGN has a very decent profitability rating, which may justify a higher PE ratio.
- ZGN's earnings are expected to grow with 13.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.25
PEG (5Y)0.81
EPS Next 2Y8.06%
EPS Next 3Y13.9%
5. Dividend
5.1 Amount
- ZGN has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.44, ZGN pays a bit more dividend than its industry peers.
- ZGN's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
- ZGN has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
- 31.86% of the earnings are spent on dividend by ZGN. This is a low number and sustainable payout ratio.
DP31.86%
EPS Next 2Y8.06%
EPS Next 3Y13.9%
9.56
-1.46 (-13.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)10-23 2025-10-23
Earnings (Next)03-25 2026-03-25/amc
Inst Owners24.89%
Inst Owner ChangeN/A
Ins Owners3.35%
Ins Owner ChangeN/A
Market Cap2.43B
Revenue(TTM)1.91B
Net Income(TTM)95.08M
Analysts80
Price Target12.14 (26.99%)
Short Float %3.73%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DP31.86%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.47%
PT rev (3m)17.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.24%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.23 | ||
| Fwd PE | 20.27 | ||
| P/S | 1.09 | ||
| P/FCF | 14.42 | ||
| P/OCF | 7.91 | ||
| P/B | 2.36 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)0.43
EY4.5%
EPS(NY)0.47
Fwd EY4.93%
FCF(TTM)0.66
FCFY6.93%
OCF(TTM)1.21
OCFY12.64%
SpS8.75
BVpS4.05
TBVpS1.52
PEG (NY)16.25
PEG (5Y)0.81
Graham Number6.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 10.74% | ||
| ROCE | 8.54% | ||
| ROIC | 6.4% | ||
| ROICexc | 7.27% | ||
| ROICexgc | 10.79% | ||
| OM | 8.59% | ||
| PM (TTM) | 4.97% | ||
| GM | 67.14% | ||
| FCFM | 7.57% |
ROA(3y)3.08%
ROA(5y)0.32%
ROE(3y)10.15%
ROE(5y)-0.11%
ROIC(3y)7.69%
ROIC(5y)N/A
ROICexc(3y)10.34%
ROICexc(5y)N/A
ROICexgc(3y)17.93%
ROICexgc(5y)N/A
ROCE(3y)10.27%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y8.96%
ROICexc growth 3YN/A
ROICexc growth 5Y6.96%
OM growth 3YN/A
OM growth 5Y2.91%
PM growth 3YN/A
PM growth 5Y19.25%
GM growth 3Y-2.37%
GM growth 5Y-1.14%
F-Score5
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 47.6% | ||
| Cap/Sales | 6.24% | ||
| Interest Coverage | 4.19 | ||
| Cash Conversion | 63.66% | ||
| Profit Quality | 152.49% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | N/A |
F-Score5
WACC7.13%
ROIC/WACC0.9
Cap/Depr(3y)45.13%
Cap/Depr(5y)42.84%
Cap/Sales(3y)5.15%
Cap/Sales(5y)5.32%
Profit Quality(3y)167.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.55%
EPS 3YN/A
EPS 5Y27.5%
EPS Q2Q%71.54%
EPS Next Y1.37%
EPS Next 2Y8.06%
EPS Next 3Y13.9%
EPS Next 5Y15%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y14.63%
Revenue growth 5Y8.06%
Sales Q2Q%86.67%
Revenue Next Year-1.48%
Revenue Next 2Y1.62%
Revenue Next 3Y3.74%
Revenue Next 5Y4.46%
EBIT growth 1Y-4.69%
EBIT growth 3YN/A
EBIT growth 5Y11.21%
EBIT Next Year138.87%
EBIT Next 3Y43.57%
EBIT Next 5YN/A
FCF growth 1Y-0.93%
FCF growth 3Y-6.33%
FCF growth 5Y6.03%
OCF growth 1Y17.19%
OCF growth 3Y-0.25%
OCF growth 5Y9.9%
ERMENEGILDO ZEGNA NV / ZGN FAQ
What is the ChartMill fundamental rating of ERMENEGILDO ZEGNA NV (ZGN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ZGN.
What is the valuation status for ZGN stock?
ChartMill assigns a valuation rating of 4 / 10 to ERMENEGILDO ZEGNA NV (ZGN). This can be considered as Fairly Valued.
How profitable is ERMENEGILDO ZEGNA NV (ZGN) stock?
ERMENEGILDO ZEGNA NV (ZGN) has a profitability rating of 6 / 10.
What are the PE and PB ratios of ERMENEGILDO ZEGNA NV (ZGN) stock?
The Price/Earnings (PE) ratio for ERMENEGILDO ZEGNA NV (ZGN) is 22.23 and the Price/Book (PB) ratio is 2.36.
Can you provide the financial health for ZGN stock?
The financial health rating of ERMENEGILDO ZEGNA NV (ZGN) is 1 / 10.