Ermenegildo Zegna N.V.
Ermenegildo Zegna N.V. Fundamental Analysis
Ermenegildo Zegna N.V. (ZGN) shows weak financial fundamentals with a PE ratio of 25.75, profit margin of 4.97%, and ROE of 10.56%. The company generates $1.9B in annual revenue with weak year-over-year growth of 2.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ZGN's fundamental strength across five key dimensions:
Efficiency Score
WeakZGN struggles to generate sufficient returns from assets.
Valuation Score
ModerateZGN shows balanced valuation metrics.
Growth Score
WeakZGN faces weak or negative growth trends.
Financial Health Score
ModerateZGN shows balanced financial health with some risks.
Profitability Score
WeakZGN struggles to sustain strong margins.
Key Financial Metrics
Is ZGN Expensive or Cheap?
P/E Ratio
ZGN trades at 25.75 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ZGN's PEG of 1.34 indicates fair valuation.
Price to Book
The market values Ermenegildo Zegna N.V. at 2.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.23 times EBITDA. This is generally considered low.
How Well Does ZGN Make Money?
Net Profit Margin
For every $100 in sales, Ermenegildo Zegna N.V. keeps $4.97 as profit after all expenses.
Operating Margin
Core operations generate 8.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.56 in profit for every $100 of shareholder equity.
ROA
Ermenegildo Zegna N.V. generates $3.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ermenegildo Zegna N.V. produces operating cash flow of $265.08M, showing steady but balanced cash generation.
Free Cash Flow
Ermenegildo Zegna N.V. produces free cash flow of $170.61M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.67 in free cash annually.
FCF Yield
ZGN converts 6.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How ZGN Stacks Against Its Sector Peers
| Metric | ZGN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.75 | 25.25 | Neutral |
| ROE | 10.56% | 1170.00% | Weak |
| Net Margin | 4.97% | 742.00% | Weak |
| Debt/Equity | 1.17 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.42 | 9.19 | Neutral |
| ROA | 3.49% | -6467.00% (disorted) | Weak |
ZGN outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ermenegildo Zegna N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.94%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
241.48%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
54.45%
Industry Style: Cyclical, Growth, Discretionary
High Growth