24.6903 USD
+0.17 (+0.69%)
We assign a fundamental rating of 4 out of 10 to ZUMZ. ZUMZ was compared to 122 industry peers in the Specialty Retail industry. No worries on liquidiy or solvency for ZUMZ as it has an excellent financial health rating, but there are worries on the profitability. ZUMZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ZUMZ was profitable.
- In the past year ZUMZ had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: ZUMZ reported negative net income in multiple years.
- ZUMZ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 1.36%, ZUMZ perfoms like the industry average, outperforming 53.28% of the companies in the same industry.
- ZUMZ's Return On Equity of 2.87% is in line compared to the rest of the industry. ZUMZ outperforms 56.56% of its industry peers.
- With a Return On Invested Capital value of 2.08%, ZUMZ perfoms like the industry average, outperforming 45.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 2.87% | ||
| ROIC | 2.08% |
ROA(3y)-2.3%
ROA(5y)2.92%
ROE(3y)-4.36%
ROE(5y)5.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 0.94%, ZUMZ is in line with its industry, outperforming 54.92% of the companies in the same industry.
- ZUMZ has a Operating Margin (1.32%) which is in line with its industry peers.
- ZUMZ's Operating Margin has declined in the last couple of years.
- ZUMZ has a Gross Margin (35.14%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of ZUMZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.32% | ||
| PM (TTM) | 0.94% | ||
| GM | 35.14% |
OM growth 3Y-69.24%
OM growth 5Y-45.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.98%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZUMZ is destroying value.
- ZUMZ has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ZUMZ has less shares outstanding
- There is no outstanding debt for ZUMZ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 2.77 indicates that ZUMZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of ZUMZ (2.77) is comparable to the rest of the industry.
- ZUMZ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.21
WACC9.7%
2.3 Liquidity
- ZUMZ has a Current Ratio of 1.82. This is a normal value and indicates that ZUMZ is financially healthy and should not expect problems in meeting its short term obligations.
- ZUMZ has a Current ratio of 1.82. This is in the better half of the industry: ZUMZ outperforms 77.87% of its industry peers.
- ZUMZ has a Quick Ratio of 1.82. This is a bad value and indicates that ZUMZ is not financially healthy enough and could expect problems in meeting its short term obligations.
- ZUMZ's Quick ratio of 0.78 is fine compared to the rest of the industry. ZUMZ outperforms 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 118.68% over the past year.
- The Revenue has been growing slightly by 2.81% in the past year.
- ZUMZ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.97% yearly.
EPS 1Y (TTM)118.68%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%816.67%
Revenue 1Y (TTM)2.81%
Revenue growth 3Y-9.1%
Revenue growth 5Y-2.97%
Sales Q2Q%7.49%
3.2 Future
- Based on estimates for the next years, ZUMZ will show a very strong growth in Earnings Per Share. The EPS will grow by 223.56% on average per year.
- Based on estimates for the next years, ZUMZ will show a small growth in Revenue. The Revenue will grow by 3.79% on average per year.
EPS Next Y1403.05%
EPS Next 2Y362.2%
EPS Next 3Y223.56%
EPS Next 5YN/A
Revenue Next Year4.21%
Revenue Next 2Y2.97%
Revenue Next 3Y3.79%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 51.44, the valuation of ZUMZ can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ZUMZ is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, ZUMZ is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 21.25, the valuation of ZUMZ can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, ZUMZ is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
- ZUMZ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.44 | ||
| Fwd PE | 21.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZUMZ is valued a bit cheaper than 67.21% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ZUMZ is valued cheaply inside the industry as 83.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.15 | ||
| EV/EBITDA | 8.05 |
4.3 Compensation for Growth
- ZUMZ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as ZUMZ's earnings are expected to grow with 223.56% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y362.2%
EPS Next 3Y223.56%
5. Dividend
5.1 Amount
- ZUMZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ZUMIEZ INC / ZUMZ FAQ
What is the fundamental rating for ZUMZ stock?
ChartMill assigns a fundamental rating of 4 / 10 to ZUMZ.
What is the valuation status for ZUMZ stock?
ChartMill assigns a valuation rating of 5 / 10 to ZUMIEZ INC (ZUMZ). This can be considered as Fairly Valued.
How profitable is ZUMIEZ INC (ZUMZ) stock?
ZUMIEZ INC (ZUMZ) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for ZUMZ stock?
The Earnings per Share (EPS) of ZUMIEZ INC (ZUMZ) is expected to grow by 1403.05% in the next year.