Zumiez Inc.
Zumiez Inc. Fundamental Analysis
Zumiez Inc. (ZUMZ) shows weak financial fundamentals with a PE ratio of 27.25, profit margin of 1.44%, and ROE of 4.41%. The company generates $0.9B in annual revenue with weak year-over-year growth of 1.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ZUMZ's fundamental strength across five key dimensions:
Efficiency Score
WeakZUMZ struggles to generate sufficient returns from assets.
Valuation Score
ModerateZUMZ shows balanced valuation metrics.
Growth Score
ModerateZUMZ shows steady but slowing expansion.
Financial Health Score
ExcellentZUMZ maintains a strong and stable balance sheet.
Profitability Score
WeakZUMZ struggles to sustain strong margins.
Key Financial Metrics
Is ZUMZ Expensive or Cheap?
P/E Ratio
ZUMZ trades at 27.25 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ZUMZ's PEG of 0.51 indicates potential undervaluation.
Price to Book
The market values Zumiez Inc. at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.42 times EBITDA. This signals the market has high growth expectations.
How Well Does ZUMZ Make Money?
Net Profit Margin
For every $100 in sales, Zumiez Inc. keeps $1.44 as profit after all expenses.
Operating Margin
Core operations generate 1.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.41 in profit for every $100 of shareholder equity.
ROA
Zumiez Inc. generates $4.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zumiez Inc. generates limited operating cash flow of $54.04M, signaling weaker underlying cash strength.
Free Cash Flow
Zumiez Inc. produces free cash flow of $51.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.05 in free cash annually.
FCF Yield
ZUMZ converts 14.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.006
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How ZUMZ Stacks Against Its Sector Peers
| Metric | ZUMZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.25 | 23.49 | Worse (Expensive) |
| ROE | 4.41% | 1160.00% | Weak |
| Net Margin | 1.44% | 672.00% | Weak |
| Debt/Equity | 0.61 | 0.73 | Neutral |
| Current Ratio | 2.01 | 2.56 | Strong Liquidity |
| ROA | 4.34% | -8277.00% (disorted) | Weak |
ZUMZ outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zumiez Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.54%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-103.41%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-73.90%
Industry Style: Cyclical, Growth, Discretionary
Declining