ZTO EXPRESS CAYMAN INC-ADR (ZTO)
US98980A1051 - ADR
ZTO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 17 industry peers in the Air Freight & Logistics industry. While ZTO has a great profitability rating, there are some minor concerns on its financial health. ZTO may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ZTO suitable for value investing!
1. Profitability
1.1 Basic Checks
ZTO had positive earnings in the past year.
ZTO had a positive operating cash flow in the past year.
In the past 5 years ZTO has always been profitable.
ZTO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ZTO has a Return On Assets of 9.97%. This is amongst the best in the industry. ZTO outperforms 94.12% of its industry peers.
The Return On Equity of ZTO (15.06%) is better than 70.59% of its industry peers.
The Return On Invested Capital of ZTO (10.37%) is better than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | 15.06% | ||
| ROIC | 10.37% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ZTO's Profit Margin of 23.15% is amongst the best of the industry. ZTO outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of ZTO has declined.
ZTO has a better Operating Margin (25.78%) than 100.00% of its industry peers.
ZTO's Operating Margin has been stable in the last couple of years.
The Gross Margin of ZTO (30.01%) is better than 64.71% of its industry peers.
In the last couple of years the Gross Margin of ZTO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.78% | ||
| PM (TTM) | 23.15% | ||
| GM | 30.01% |
OM growth 3Y11.37%
OM growth 5Y1.14%
PM growth 3Y10.02%
PM growth 5Y-1.77%
GM growth 3Y9.45%
GM growth 5Y-0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ZTO is creating some value.
ZTO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.82 indicates that ZTO is not in any danger for bankruptcy at the moment.
ZTO's Altman-Z score of 3.82 is fine compared to the rest of the industry. ZTO outperforms 70.59% of its industry peers.
ZTO has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
ZTO has a better Debt to FCF ratio (1.27) than 82.35% of its industry peers.
ZTO has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
ZTO's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. ZTO outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.44
WACC7.18%
2.3 Liquidity
ZTO has a Current Ratio of 1.17. This is a normal value and indicates that ZTO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.17, ZTO perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
ZTO has a Quick Ratio of 1.17. This is a normal value and indicates that ZTO is financially healthy and should not expect problems in meeting its short term obligations.
ZTO has a Quick ratio (1.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.93% over the past year.
ZTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.36% yearly.
Looking at the last year, ZTO shows a quite strong growth in Revenue. The Revenue has grown by 8.49% in the last year.
ZTO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.89% yearly.
EPS 1Y (TTM)29.93%
EPS 3Y24.41%
EPS 5Y12.36%
EPS growth Q2Q19.83%
Revenue 1Y (TTM)8.49%
Revenue growth 3Y15.07%
Revenue growth 5Y16.89%
Revenue growth Q2Q1.46%
3.2 Future
The Earnings Per Share is expected to grow by 7.68% on average over the next years.
ZTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.79% yearly.
EPS Next Y18.66%
EPS Next 2Y18.15%
EPS Next 3Y13.92%
EPS Next 5Y7.68%
Revenue Next Year9.5%
Revenue Next 2Y11.17%
Revenue Next 3Y9.55%
Revenue Next 5Y5.79%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 13.43, which indicates a correct valuation of ZTO.
ZTO's Price/Earnings ratio is rather cheap when compared to the industry. ZTO is cheaper than 82.35% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.05, ZTO is valued rather cheaply.
The Price/Forward Earnings ratio is 11.26, which indicates a very decent valuation of ZTO.
Based on the Price/Forward Earnings ratio, ZTO is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
ZTO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ZTO is valued cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.98 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ZTO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ZTO's earnings are expected to grow with 13.92% in the coming years.
PEG (NY)0.72
PEG (5Y)1.09
EPS Next 2Y18.15%
EPS Next 3Y13.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.88%, ZTO has a reasonable but not impressive dividend return.
ZTO's Dividend Yield is rather good when compared to the industry average which is at 2.75. ZTO pays more dividend than 82.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ZTO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
ZTO 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
DPN/A
EPS Next 2Y18.15%
EPS Next 3Y13.92%
ZTO EXPRESS CAYMAN INC-ADR
NYSE:ZTO (5/8/2024, 4:00:28 PM)
After market: 20.42 0 (0%)20.42
-0.13 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 11.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.72
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | 15.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.78% | ||
| PM (TTM) | 23.15% | ||
| GM | 30.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)29.93%
EPS 3Y24.41%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.49%
Revenue growth 3Y15.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y