ZTO Express (Cayman) Inc. Fundamental Analysis (NYSE: ZTO)
ZTO Express (Cayman) Inc. Fundamental Analysis (NYSE: ZTO)
ZTO Express (Cayman) Inc. (NYSE: ZTO) shows moderate financial fundamentals with a PE ratio of 10.91, profit margin of 19.03%, and ROE of 15.97%. The company generates $55.8B in annual revenue with moderate year-over-year growth of 8.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ZTO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentZTO demonstrates superior asset utilization.
Valuation Score
ExcellentZTO trades at attractive valuation levels.
Growth Score
ModerateZTO shows steady but slowing expansion.
Financial Health Score
ExcellentZTO maintains a strong and stable balance sheet.
Profitability Score
ExcellentZTO achieves industry-leading margins.
Key Financial Metrics
Is ZTO Expensive or Cheap?
P/E Ratio
ZTO trades at 10.91 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ZTO's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values ZTO Express (Cayman) Inc. at 1.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.47 times EBITDA. This is generally considered low.
How Well Does ZTO Make Money?
Net Profit Margin
For every $100 in sales, ZTO Express (Cayman) Inc. keeps $19.03 as profit after all expenses.
Operating Margin
Core operations generate 20.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.97 in profit for every $100 of shareholder equity.
ROA
ZTO Express (Cayman) Inc. generates $10.39 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 $12.83B, showing steady but balanced cash generation.
Free Cash Flow
ZTO Express (Cayman) Inc. produces free cash flow of $4.40B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.56 in free cash annually.
FCF Yield
ZTO converts 3.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How ZTO Stacks Against Its Sector Peers
| Metric | ZTO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.91 | 30.00 | Better (Cheaper) |
| ROE | 15.97% | 1114.00% | Weak |
| Net Margin | 19.03% | -25183.00% (disorted) | Strong |
| Debt/Equity | 0.35 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 1.67 | 21.63 | Neutral |
| ROA | 10.39% | -1320911.00% (disorted) | Strong |
ZTO outperforms its industry in 4 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
89.32%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
104.73%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
135.04%
Industry Style: Cyclical, Value, Infrastructure
High Growth