ERMENEGILDO ZEGNA NV (ZGN) Stock Fundamental Analysis
NYSE:ZGN • NL0015000PB5
11.02 USD
-0.28 (-2.48%)
At close: Mar 3, 2026
11.02 USD
0 (0%)
After Hours: 3/3/2026, 4:53:43 PM
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. While ZGN is still in line with the averages on profitability rating, there are concerns on its financial health. ZGN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ZGN was profitable.
- In the past year ZGN had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: ZGN reported negative net income in multiple years.
- In the past 5 years ZGN always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 3.49%, ZGN perfoms like the industry average, outperforming 57.78% of the companies in the same 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 (6.40%) which is comparable to the rest of the industry.
- ZGN had an Average Return On Invested Capital over the past 3 years of 7.69%. This is below the industry average of 11.67%.
| 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 68.89% of its industry peers.
- In the last couple of years the Profit Margin of ZGN has grown nicely.
- ZGN's Operating Margin of 8.59% is fine compared to the rest of the industry. ZGN outperforms 75.56% of its industry peers.
- ZGN's Operating Margin has improved in the last couple of years.
- ZGN has a better Gross Margin (67.14%) than 93.33% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ZGN is still creating some value.
- ZGN has more shares outstanding than it did 1 year ago.
- ZGN has more shares outstanding than it did 5 years ago.
- ZGN has a worse debt/assets ratio than last year.
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 51.11% 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.
- The Debt to Equity ratio of ZGN (0.82) is worse than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.89
WACC7.18%
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 80.00% 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.
- ZGN has a Quick ratio of 0.79. This is in the lower half of the industry: ZGN underperforms 77.78% 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%.
- Measured over the past years, ZGN shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.50% on average per year.
- ZGN shows a decrease in Revenue. In the last year, the revenue decreased by -2.42%.
- 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
- 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.
- 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 Y2.94%
EPS Next 2Y7.77%
EPS Next 3Y13.84%
EPS Next 5Y15%
Revenue Next Year-1.28%
Revenue Next 2Y1.57%
Revenue Next 3Y3.51%
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 25.05, which means the current valuation is very expensive for ZGN.
- ZGN's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 26.83. ZGN is around the same levels.
- Based on the Price/Forward Earnings ratio of 23.32, the valuation of ZGN can be described as rather expensive.
- ZGN's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.95. ZGN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 23.32 |
4.2 Price Multiples
- 77.78% 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 75.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.51 | ||
| EV/EBITDA | 7.67 |
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 13.84% in the coming years.
PEG (NY)8.53
PEG (5Y)0.91
EPS Next 2Y7.77%
EPS Next 3Y13.84%
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.
- ZGN's Dividend Yield is a higher than the industry average which is at 1.39.
- ZGN's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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 2Y7.77%
EPS Next 3Y13.84%
11.02
-0.28 (-2.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)10-23 2025-10-23
Earnings (Next)03-20 2026-03-20/amc
Inst Owners24.89%
Inst Owner ChangeN/A
Ins Owners3.35%
Ins Owner ChangeN/A
Market Cap2.80B
Revenue(TTM)1.91B
Net Income(TTM)95.08M
Analysts77.14
Price Target12.08 (9.62%)
Short Float %4.09%
Short Ratio5.33
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)-0.51%
PT rev (3m)2.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.26%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 23.32 | ||
| P/S | 1.25 | ||
| P/FCF | 16.51 | ||
| P/OCF | 9.05 | ||
| P/B | 2.7 | ||
| P/tB | 7.18 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)0.44
EY3.99%
EPS(NY)0.47
Fwd EY4.29%
FCF(TTM)0.67
FCFY6.06%
OCF(TTM)1.22
OCFY11.05%
SpS8.81
BVpS4.08
TBVpS1.53
PEG (NY)8.53
PEG (5Y)0.91
Graham Number6.35
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
WACC7.18%
ROIC/WACC0.89
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 Y2.94%
EPS Next 2Y7.77%
EPS Next 3Y13.84%
EPS Next 5Y15%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y14.63%
Revenue growth 5Y8.06%
Sales Q2Q%86.67%
Revenue Next Year-1.28%
Revenue Next 2Y1.57%
Revenue Next 3Y3.51%
Revenue Next 5Y4.46%
EBIT growth 1Y-4.69%
EBIT growth 3YN/A
EBIT growth 5Y11.21%
EBIT Next Year138.95%
EBIT Next 3Y42.83%
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 25.05 and the Price/Book (PB) ratio is 2.7.
Can you provide the financial health for ZGN stock?
The financial health rating of ERMENEGILDO ZEGNA NV (ZGN) is 1 / 10.