ZTO Express (Cayman) Inc.
ZTO Express (Cayman) Inc. Fundamental Analysis
ZTO Express (Cayman) Inc. (2057.HK) shows strong financial fundamentals with a PE ratio of 14.64, profit margin of 18.49%, and ROE of 14.02%. The company generates $49.1B in annual revenue with strong year-over-year growth of 15.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 2057.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2057.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate2057.HK shows balanced valuation metrics.
Growth Score
Moderate2057.HK shows steady but slowing expansion.
Financial Health Score
Excellent2057.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2057.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2057.HK Expensive or Cheap?
P/E Ratio
2057.HK trades at 14.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2057.HK's PEG of 6.36 indicates potential overvaluation.
Price to Book
The market values ZTO Express (Cayman) Inc. at 1.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.29 times EBITDA. This is generally considered low.
How Well Does 2057.HK Make Money?
Net Profit Margin
For every $100 in sales, ZTO Express (Cayman) Inc. keeps $18.49 as profit after all expenses.
Operating Margin
Core operations generate 20.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.02 in profit for every $100 of shareholder equity.
ROA
ZTO Express (Cayman) Inc. generates $9.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ZTO Express (Cayman) Inc. produces operating cash flow of $7.38B, showing steady but balanced cash generation.
Free Cash Flow
ZTO Express (Cayman) Inc. generates weak or negative free cash flow of $-801.23M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.00 in free cash annually.
FCF Yield
2057.HK converts -0.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How 2057.HK Stacks Against Its Sector Peers
| Metric | 2057.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.64 | 25.96 | Better (Cheaper) |
| ROE | 14.02% | 1263.00% | Weak |
| Net Margin | 18.49% | -41827.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.49 | 10.05 | Neutral |
| ROA | 9.91% | -1497918.00% (disorted) | Weak |
2057.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ZTO Express (Cayman) Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.55%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
47.84%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
72.50%
Industry Style: Cyclical, Value, Infrastructure
High Growth