ERMENEGILDO ZEGNA NV (ZGN) Stock Fundamental Analysis
USA - NYSE:ZGN - NL0015000PB5 - Common Stock
9.085 USD
+0.35 (+3.95%)
Taking everything into account, ZGN scores 4 out of 10 in our fundamental rating. ZGN was compared to 49 industry peers in the Textiles, Apparel & Luxury Goods industry. While ZGN is still in line with the averages on profitability rating, there are concerns on its financial health. ZGN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ZGN had positive earnings in the past year.
In the past year ZGN had a positive cash flow from operations.
In multiple years ZGN reported negative net income over the last 5 years.
ZGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZGN has a Return On Assets of 3.49%. This is comparable to the rest of the industry: ZGN outperforms 55.10% of its industry peers.
With a Return On Equity value of 10.74%, ZGN perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
ZGN has a Return On Invested Capital (6.40%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZGN is below the industry average of 12.08%.
| 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
With a decent Profit Margin value of 4.97%, ZGN is doing good in the industry, outperforming 69.39% of the companies in the same industry.
ZGN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.59%, ZGN is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
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 91.84% of the companies in the same industry.
ZGN's Gross Margin has been stable in the last couple of years.
| 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
ZGN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ZGN has been increased compared to 1 year ago.
Compared to 5 years ago, ZGN has more shares outstanding
Compared to 1 year ago, ZGN has a worse debt to assets ratio.
2.2 Solvency
ZGN has a debt to FCF ratio of 7.14. This is a slightly negative value and a sign of low solvency as ZGN would need 7.14 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.14, ZGN is in line with its industry, outperforming 46.94% of the companies in the same industry.
ZGN has a Debt/Equity ratio of 0.82. This is a neutral value indicating ZGN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.82, ZGN is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.84
WACC7.58%
2.3 Liquidity
ZGN has a Current Ratio of 1.42. This is a normal value and indicates that ZGN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.42, ZGN is not doing good in the industry: 77.55% of the companies in the same industry are doing better.
ZGN has a Quick Ratio of 1.42. This is a bad value and indicates that ZGN is not financially healthy enough and could expect problems in meeting its short term obligations.
ZGN's Quick ratio of 0.79 is on the low side compared to the rest of the industry. ZGN is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
ZGN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.55%.
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.
Measured over the past years, ZGN shows a quite strong growth in Revenue. The Revenue has been growing by 8.06% on average per year.
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
The Earnings Per Share is expected to grow by 13.24% on average over the next years. This is quite good.
Based on estimates for the next years, ZGN will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y-4.15%
EPS Next 2Y9.13%
EPS Next 3Y13.24%
EPS Next 5YN/A
Revenue Next Year-1.02%
Revenue Next 2Y1.8%
Revenue Next 3Y3.55%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.65, which indicates a rather expensive current valuation of ZGN.
Compared to the rest of the industry, the Price/Earnings ratio of ZGN is on the same level as its industry peers.
ZGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 18.72 indicates a rather expensive valuation of ZGN.
ZGN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.73. ZGN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.65 | ||
| Fwd PE | 18.72 |
4.2 Price Multiples
75.51% of the companies in the same industry are more expensive than ZGN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ZGN is valued a bit cheaper than the industry average as 79.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.59 | ||
| EV/EBITDA | 6.33 |
4.3 Compensation for Growth
The decent profitability rating of ZGN may justify a higher PE ratio.
A more expensive valuation may be justified as ZGN's earnings are expected to grow with 13.24% in the coming years.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y9.13%
EPS Next 3Y13.24%
5. Dividend
5.1 Amount
ZGN has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
ZGN's Dividend Yield is a higher than the industry average which is at 3.05.
Compared to an average S&P500 Dividend Yield of 2.38, ZGN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
ZGN has paid a dividend for less than 5 years, so there is no long track record yet.
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 2Y9.13%
EPS Next 3Y13.24%
NYSE:ZGN (9/15/2025, 12:12:44 PM)
9.085
+0.35 (+3.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners15.56%
Inst Owner ChangeN/A
Ins Owners3.35%
Ins Owner ChangeN/A
Market Cap2.31B
Analysts76
Price Target9.78 (7.65%)
Short Float %6.78%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DP31.86%
Div Incr Years1
Div Non Decr Years2
Ex-Date
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)2.31%
PT rev (3m)8.03%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.26%
EPS NY rev (3m)-8.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.65 | ||
| Fwd PE | 18.72 | ||
| P/S | 1.03 | ||
| P/FCF | 13.59 | ||
| P/OCF | 7.45 | ||
| P/B | 2.23 | ||
| P/tB | 5.91 | ||
| EV/EBITDA | 6.33 |
EPS(TTM)0.44
EY4.84%
EPS(NY)0.49
Fwd EY5.34%
FCF(TTM)0.67
FCFY7.36%
OCF(TTM)1.22
OCFY13.42%
SpS8.83
BVpS4.08
TBVpS1.54
PEG (NY)N/A
PEG (5Y)0.75
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
ROICexcg growth 3YN/A
ROICexcg 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
WACC7.58%
ROIC/WACC0.84
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 Y-4.15%
EPS Next 2Y9.13%
EPS Next 3Y13.24%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y14.63%
Revenue growth 5Y8.06%
Sales Q2Q%86.67%
Revenue Next Year-1.02%
Revenue Next 2Y1.8%
Revenue Next 3Y3.55%
Revenue Next 5Y4.46%
EBIT growth 1Y-4.69%
EBIT growth 3YN/A
EBIT growth 5Y11.21%
EBIT Next Year139.15%
EBIT Next 3Y42.46%
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%