ERMENEGILDO ZEGNA NV (ZGN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZGN - NL0015000PB5 - Common Stock
10.22 USD
+0.38 (+3.86%)
10.22 USD
0 (0%)
ZGN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of ZGN while its profitability can be described as average. 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.
In multiple years ZGN reported negative net income over the last 5 years.
In the past 5 years ZGN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ZGN (3.49%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.74%, ZGN is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
ZGN has a Return On Invested Capital of 6.40%. This is comparable to the rest of the industry: ZGN outperforms 52.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZGN is below the industry average of 12.21%.
| 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 66.67% 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 68.75% 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 91.67% 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.
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.
ZGN has a Debt to FCF ratio (7.14) which is comparable to the rest of the industry.
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 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.88
WACC7.26%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ZGN should not have too much problems paying its short term obligations.
ZGN has a worse Current ratio (1.42) than 75.00% of its industry peers.
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.
With a Quick ratio value of 0.79, ZGN is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
| 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.
The Revenue has decreased by -2.42% in the past year.
The Revenue has been growing by 8.06% on average over the past years. This is quite good.
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 14.99% on average over the next years. This is quite good.
ZGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.46% yearly.
EPS Next Y1.98%
EPS Next 2Y8.09%
EPS Next 3Y13.45%
EPS Next 5Y14.99%
Revenue Next Year-1.43%
Revenue Next 2Y1.52%
Revenue Next 3Y3.66%
Revenue Next 5Y4.46%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 23.77 indicates a rather expensive valuation of ZGN.
The rest of the industry has a similar Price/Earnings ratio as ZGN.
When comparing the Price/Earnings ratio of ZGN to the average of the S&P500 Index (25.45), we can say ZGN is valued inline with the index average.
ZGN is valuated rather expensively with a Price/Forward Earnings ratio of 21.84.
ZGN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ZGN is more expensive than 60.42% of the companies in the same industry.
ZGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 21.84 |
4.2 Price Multiples
79.17% 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 79.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.55 | ||
| EV/EBITDA | 7.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 13.45% in the coming years.
PEG (NY)12
PEG (5Y)0.86
EPS Next 2Y8.09%
EPS Next 3Y13.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, ZGN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.51, ZGN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.26, ZGN pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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
ZGN pays out 31.86% of its income as dividend. This is a sustainable payout ratio.
DP31.86%
EPS Next 2Y8.09%
EPS Next 3Y13.45%
10.22
+0.38 (+3.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners23.37%
Inst Owner ChangeN/A
Ins Owners3.35%
Ins Owner ChangeN/A
Market Cap2.60B
Revenue(TTM)1.91B
Net Income(TTM)95.08M
Analysts78.46
Price Target11.77 (15.17%)
Short Float %3.53%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)13.51%
PT rev (3m)23.07%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.27%
EPS NY rev (3m)6.4%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 21.84 | ||
| P/S | 1.18 | ||
| P/FCF | 15.55 | ||
| P/OCF | 8.53 | ||
| P/B | 2.55 | ||
| P/tB | 6.77 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)0.43
EY4.21%
EPS(NY)0.47
Fwd EY4.58%
FCF(TTM)0.66
FCFY6.43%
OCF(TTM)1.2
OCFY11.73%
SpS8.68
BVpS4.01
TBVpS1.51
PEG (NY)12
PEG (5Y)0.86
Graham Number6.23
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
WACC7.26%
ROIC/WACC0.88
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 Y1.98%
EPS Next 2Y8.09%
EPS Next 3Y13.45%
EPS Next 5Y14.99%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y14.63%
Revenue growth 5Y8.06%
Sales Q2Q%86.67%
Revenue Next Year-1.43%
Revenue Next 2Y1.52%
Revenue Next 3Y3.66%
Revenue Next 5Y4.46%
EBIT growth 1Y-4.69%
EBIT growth 3YN/A
EBIT growth 5Y11.21%
EBIT Next Year139.39%
EBIT Next 3Y42.82%
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 of ERMENEGILDO ZEGNA NV (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 is the valuation of ERMENEGILDO ZEGNA NV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ERMENEGILDO ZEGNA NV (ZGN) is 23.77 and the Price/Book (PB) ratio is 2.55.
What is the earnings growth outlook for ERMENEGILDO ZEGNA NV?
The Earnings per Share (EPS) of ERMENEGILDO ZEGNA NV (ZGN) is expected to grow by 1.98% in the next year.