ERMENEGILDO ZEGNA NV (ZGN) Stock Fundamental Analysis
USA - NYSE:ZGN - NL0015000PB5 - Common Stock
10.21 USD
-0.16 (-1.54%)
10.21 USD
0 (0%)
Taking everything into account, ZGN scores 4 out of 10 in our fundamental rating. ZGN was compared to 48 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
In the past year ZGN was profitable.
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 of 3.49%. This is comparable to the rest of the industry: ZGN outperforms 56.25% of its industry peers.
ZGN's Return On Equity of 10.74% is in line compared to the rest of the industry. ZGN outperforms 58.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.40%, ZGN is in line with its industry, outperforming 47.92% 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 12.18%.
| 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 68.75% 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.
ZGN's Operating Margin has improved in the last couple of years.
ZGN has a better Gross Margin (67.14%) than 91.67% 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
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
The debt/assets ratio for ZGN is higher compared to a year ago.
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 45.83% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that ZGN is somewhat dependend on debt financing.
ZGN has a Debt to Equity ratio of 0.82. This is in the lower half of the industry: ZGN underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC6.83%
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.
Looking at the Current ratio, with a value of 1.42, ZGN is doing worse than 77.08% of the companies in the same industry.
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.
The Quick ratio of ZGN (0.79) is worse than 72.92% 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.
The Revenue has decreased by -2.42% in the past 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 15.12% on average per year.
ZGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.46% yearly.
EPS Next Y2.75%
EPS Next 2Y10.78%
EPS Next 3Y14.37%
EPS Next 5Y15.12%
Revenue Next Year-1.33%
Revenue Next 2Y1.47%
Revenue Next 3Y3.34%
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
With a Price/Earnings ratio of 23.20, ZGN is valued on the expensive side.
ZGN's Price/Earnings is on the same level as the industry average.
ZGN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.90, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.39, ZGN is valued on the expensive side.
ZGN's Price/Forward Earnings is on the same level as the industry average.
ZGN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 20.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZGN is valued a bit cheaper than 68.75% of the companies in the same industry.
ZGN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZGN is cheaper than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.25 | ||
| EV/EBITDA | 7.17 |
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.
ZGN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ZGN's earnings are expected to grow with 14.37% in the coming years.
PEG (NY)8.45
PEG (5Y)0.84
EPS Next 2Y10.78%
EPS Next 3Y14.37%
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.
Compared to an average industry Dividend Yield of 3.18, ZGN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.42, ZGN pays less dividend than the S&P500 average, which is at 2.44.
| 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 2Y10.78%
EPS Next 3Y14.37%
10.21
-0.16 (-1.54%)
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 Cap2.59B
Analysts76.67
Price Target10.37 (1.57%)
Short Float %6.45%
Short Ratio4.94
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)8.42%
PT rev (3m)14.48%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)7.2%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 20.39 | ||
| P/S | 1.15 | ||
| P/FCF | 15.25 | ||
| P/OCF | 8.36 | ||
| P/B | 2.5 | ||
| P/tB | 6.64 | ||
| EV/EBITDA | 7.17 |
EPS(TTM)0.44
EY4.31%
EPS(NY)0.5
Fwd EY4.9%
FCF(TTM)0.67
FCFY6.56%
OCF(TTM)1.22
OCFY11.96%
SpS8.84
BVpS4.09
TBVpS1.54
PEG (NY)8.45
PEG (5Y)0.84
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
WACC6.83%
ROIC/WACC0.94
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 Y2.75%
EPS Next 2Y10.78%
EPS Next 3Y14.37%
EPS Next 5Y15.12%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y14.63%
Revenue growth 5Y8.06%
Sales Q2Q%86.67%
Revenue Next Year-1.33%
Revenue Next 2Y1.47%
Revenue Next 3Y3.34%
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%