ERMENEGILDO ZEGNA NV (ZGN) Stock Fundamental Analysis
USA - NYSE:ZGN - NL0015000PB5 - Common Stock
10.4199 USD
+0.07 (+0.68%)
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. ZGN has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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 56.25% of its industry peers.
Looking at the Return On Equity, with a value of 10.74%, ZGN is in line with its industry, outperforming 58.33% 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 47.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZGN is below the industry average of 12.15%.
| 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
The Profit Margin of ZGN (4.97%) is better than 68.75% of its industry peers.
ZGN's Profit Margin has improved in the last couple of years.
ZGN's Operating Margin of 8.59% is fine compared to the rest of the industry. ZGN outperforms 68.75% of its industry peers.
ZGN's Operating Margin has improved in the last couple of years.
ZGN's Gross Margin of 67.14% is amongst the best of the industry. ZGN outperforms 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
ZGN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
ZGN has a worse debt/assets ratio than last year.
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 in line with 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.
ZGN has a worse Debt to Equity ratio (0.82) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.89
WACC7.2%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ZGN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.42, ZGN is not doing good in the industry: 77.08% 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.
With a Quick ratio value of 0.79, ZGN is not doing good in the industry: 72.92% 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
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
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
The Earnings Per Share is expected to grow by 15.12% 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-0.28%
EPS Next 2Y7.94%
EPS Next 3Y12.8%
EPS Next 5Y15.12%
Revenue Next Year-1.43%
Revenue Next 2Y1.49%
Revenue Next 3Y3.63%
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
ZGN is valuated rather expensively with a Price/Earnings ratio of 24.23.
ZGN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ZGN to the average of the S&P500 Index (26.76), we can say ZGN is valued inline with the index average.
With a Price/Forward Earnings ratio of 22.10, ZGN is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as ZGN.
The average S&P500 Price/Forward Earnings ratio is at 22.63. ZGN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.23 | ||
| Fwd PE | 22.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZGN is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
ZGN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZGN is cheaper than 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.69 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
The decent profitability rating of ZGN may justify a higher PE ratio.
ZGN's earnings are expected to grow with 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y7.94%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
ZGN has a Yearly Dividend Yield of 1.26%.
Compared to an average industry Dividend Yield of 3.17, ZGN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, ZGN's dividend is way lower than the S&P500 average.
| 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
31.86% of the earnings are spent on dividend by ZGN. This is a low number and sustainable payout ratio.
DP31.86%
EPS Next 2Y7.94%
EPS Next 3Y12.8%
NYSE:ZGN (10/30/2025, 2:05:44 PM)
10.4199
+0.07 (+0.68%)
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 Cap2.65B
Revenue(TTM)1.91B
Net Income(TTM)95.08M
Analysts76.67
Price Target11.77 (12.96%)
Short Float %3.86%
Short Ratio4.37
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)5.97%
PT rev (3m)12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.95%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.23 | ||
| Fwd PE | 22.1 | ||
| P/S | 1.19 | ||
| P/FCF | 15.69 | ||
| P/OCF | 8.61 | ||
| P/B | 2.57 | ||
| P/tB | 6.83 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)0.43
EY4.13%
EPS(NY)0.47
Fwd EY4.52%
FCF(TTM)0.66
FCFY6.37%
OCF(TTM)1.21
OCFY11.62%
SpS8.77
BVpS4.05
TBVpS1.53
PEG (NY)N/A
PEG (5Y)0.88
Graham Number6.26
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
WACC7.2%
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 Y-0.28%
EPS Next 2Y7.94%
EPS Next 3Y12.8%
EPS Next 5Y15.12%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y14.63%
Revenue growth 5Y8.06%
Sales Q2Q%86.67%
Revenue Next Year-1.43%
Revenue Next 2Y1.49%
Revenue Next 3Y3.63%
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 24.23 and the Price/Book (PB) ratio is 2.57.
What is the earnings growth outlook for ERMENEGILDO ZEGNA NV?
The Earnings per Share (EPS) of ERMENEGILDO ZEGNA NV (ZGN) is expected to decline by -0.28% in the next year.