ZTO
ZTO Express·NYSE
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8.88 / 10
Outperform
ZTO's fundamental analysis yields an 8.9/10 rating, driven by solid inventory turnover and quick ratio metrics. However, challenges in cash utilization and accounts receivable collection temper the outlook. The company's preliminary FY 2025 revenue is projected to grow 9.5-12.9% year-over-year to RMB 48.5-50B, while gross profit is expected to decline 8.5-11.4% to RMB 12.15-12.55B, indicating margin pressure. Despite this, the fundamentals remain very promising.
Analysis Checks(6/10)
Revenue-MV
Value0.13
Score2/3
Weight24.31%
1M Return2.65%
Value0.13
Score2/3
Weight24.31%
1M Return2.65%
Profit-MV
Value3.13
Score2/3
Weight85.91%
1M Return8.66%
Value3.13
Score2/3
Weight85.91%
1M Return8.66%
Quick ratio
Value1.38
Score3/3
Weight14.64%
1M Return1.79%
Value1.38
Score3/3
Weight14.64%
1M Return1.79%
Cash-UP
Value0.25
Score1/3
Weight-6.90%
1M Return-1.13%
Value0.25
Score1/3
Weight-6.90%
1M Return-1.13%
Inventory turnover days
Value0.45
Score3/3
Weight10.97%
1M Return1.49%
Value0.45
Score3/3
Weight10.97%
1M Return1.49%
Net cash flow from operating activities / Operating revenue (%)
Value22.38
Score2/3
Weight15.47%
1M Return2.05%
Value22.38
Score2/3
Weight15.47%
1M Return2.05%
Accounts receivable turnover ratio
Value25.85
Score0/3
Weight-23.29%
1M Return-4.02%
Value25.85
Score0/3
Weight-23.29%
1M Return-4.02%
PB-ROE
Value-0.88
Score0/3
Weight-23.00%
1M Return-6.70%
Value-0.88
Score0/3
Weight-23.00%
1M Return-6.70%
Interest coverage ratio (EBIT / Interest expense) (%)
Value15.48
Score2/3
Weight9.80%
1M Return1.39%
Value15.48
Score2/3
Weight9.80%
1M Return1.39%
Cash-MV
Value0.32
Score0/3
Weight-7.91%
1M Return-1.06%
Value0.32
Score0/3
Weight-7.91%
1M Return-1.06%
Revenue-MV
Value0.13
Score2/3
Weight24.31%
1M Return2.65%
Value0.13
Score2/3
Weight24.31%
1M Return2.65%
Net cash flow from operating activities / Operating revenue (%)
Value22.38
Score2/3
Weight15.47%
1M Return2.05%
Value22.38
Score2/3
Weight15.47%
1M Return2.05%
Profit-MV
Value3.13
Score2/3
Weight85.91%
1M Return8.66%
Value3.13
Score2/3
Weight85.91%
1M Return8.66%
Accounts receivable turnover ratio
Value25.85
Score0/3
Weight-23.29%
1M Return-4.02%
Value25.85
Score0/3
Weight-23.29%
1M Return-4.02%
Quick ratio
Value1.38
Score3/3
Weight14.64%
1M Return1.79%
Value1.38
Score3/3
Weight14.64%
1M Return1.79%
PB-ROE
Value-0.88
Score0/3
Weight-23.00%
1M Return-6.70%
Value-0.88
Score0/3
Weight-23.00%
1M Return-6.70%
Cash-UP
Value0.25
Score1/3
Weight-6.90%
1M Return-1.13%
Value0.25
Score1/3
Weight-6.90%
1M Return-1.13%
Interest coverage ratio (EBIT / Interest expense) (%)
Value15.48
Score2/3
Weight9.80%
1M Return1.39%
Value15.48
Score2/3
Weight9.80%
1M Return1.39%
Inventory turnover days
Value0.45
Score3/3
Weight10.97%
1M Return1.49%
Value0.45
Score3/3
Weight10.97%
1M Return1.49%
Cash-MV
Value0.32
Score0/3
Weight-7.91%
1M Return-1.06%
Value0.32
Score0/3
Weight-7.91%
1M Return-1.06%
Is ZTO fundamentally strong?
- ZTO scores 8.88/10 on fundamentals and holds a Discounted valuation at present. Backed by its 10.08% ROE, 18.88% net margin, 16.00 P/E ratio, 2.09 P/B ratio, and -3.59% earnings growth, these metrics solidify its Outperform investment rating.
