ERMENEGILDO ZEGNA NV (ZGN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZGN - NL0015000PB5 - Common Stock
10.48 USD
+0.02 (+0.19%)
ZGN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 45 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 has a correct valuation and a medium 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.
In the past 5 years ZGN always reported a positive cash flow from operatings.
1.2 Ratios
ZGN has a Return On Assets (3.49%) which is in line with its industry peers.
ZGN's Return On Equity of 10.74% is fine compared to the rest of the industry. ZGN outperforms 66.67% of its industry peers.
With a Return On Invested Capital value of 6.40%, ZGN perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZGN is below the industry average of 11.62%.
| 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 better Profit Margin (4.97%) than 73.33% of its industry peers.
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 75.56% of the companies in the same industry.
In the last couple of years the Operating Margin of ZGN has grown nicely.
The Gross Margin of ZGN (67.14%) is better than 91.11% of its industry peers.
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.
Compared to 1 year ago, ZGN has more shares outstanding
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.
With a Debt to FCF ratio value of 7.14, ZGN perfoms like the industry average, outperforming 48.89% 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.
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/WACC0.87
WACC7.33%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ZGN should not have too much problems paying its short term obligations.
The Current ratio of ZGN (1.42) is worse than 77.78% of its industry peers.
A Quick Ratio of 0.79 indicates that ZGN may have some problems paying 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 82.22% 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%.
The Earnings Per Share has been growing by 27.50% on average over the past years. This is a very strong growth
Looking at the last year, ZGN shows a decrease in Revenue. The Revenue has decreased by -2.42% in the last 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 15.00% 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 Y1.37%
EPS Next 2Y8.06%
EPS Next 3Y13.9%
EPS Next 5Y15%
Revenue Next Year-1.53%
Revenue Next 2Y1.62%
Revenue Next 3Y3.74%
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.
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
A Price/Earnings ratio of 23.82 indicates a rather expensive valuation of ZGN.
ZGN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.92, ZGN is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.09, the valuation of ZGN can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ZGN.
When comparing the Price/Forward Earnings ratio of ZGN to the average of the S&P500 Index (23.57), we can say ZGN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 22.09 |
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 75.56% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZGN indicates a somewhat cheap valuation: ZGN is cheaper than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.72 | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZGN does not grow enough to justify the current Price/Earnings ratio.
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 13.90% in the coming years.
PEG (NY)17.41
PEG (5Y)0.87
EPS Next 2Y8.06%
EPS Next 3Y13.9%
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 1.53, ZGN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.94, ZGN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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
ZGN pays out 31.86% of its income as dividend. This is a sustainable payout ratio.
DP31.86%
EPS Next 2Y8.06%
EPS Next 3Y13.9%
NYSE:ZGN (1/8/2026, 9:46:00 AM)
10.48
+0.02 (+0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners24.89%
Inst Owner ChangeN/A
Ins Owners3.35%
Ins Owner ChangeN/A
Market Cap2.66B
Revenue(TTM)1.91B
Net Income(TTM)95.08M
Analysts80
Price Target12.09 (15.36%)
Short Float %3.73%
Short Ratio6.02
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-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)2.71%
PT rev (3m)16.59%
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)0.05%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 22.09 | ||
| P/S | 1.19 | ||
| P/FCF | 15.72 | ||
| P/OCF | 8.62 | ||
| P/B | 2.57 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)0.44
EY4.2%
EPS(NY)0.47
Fwd EY4.53%
FCF(TTM)0.67
FCFY6.36%
OCF(TTM)1.22
OCFY11.6%
SpS8.8
BVpS4.07
TBVpS1.53
PEG (NY)17.41
PEG (5Y)0.87
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
WACC7.33%
ROIC/WACC0.87
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-1.53%
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 23.82 and the Price/Book (PB) ratio is 2.57.
Can you provide the financial health for ZGN stock?
The financial health rating of ERMENEGILDO ZEGNA NV (ZGN) is 1 / 10.