ZTO Express logged a -1.0% change Friday, and is now trading at a price of $27.63 per share. The S&P 500 index moved 2.3% and the Nasdaq posted a 2.8% change. ZTO's trading volume is 1,710,603 compared to the stock's average volume of 3,031,637.
ZTO Express shares moved -5.5% over the last 52 weeks, with a high of $32.28 and a low of $16.27. During this time, the stock underperformed the S&P 500 index by 11.1%. As of January 2022, the company's 50-day average price is $24.0. ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The large-cap Industrials company has 23,865 full time employees and is based in Shanghai, China. ZTO Express has not offered any dividends in the last year.
Strong Financials Overall - but Watch the Negative Cash flows:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $22,110 | $25,214 | $30,406 |
| Revenue Growth | n/a | 14.04% | 20.59% |
| Gross Margins | 30.0% | 23.2% | 21.7% |
| Gross Margins Growth | n/a | -22.67% | -6.47% |
| Operating Margins | 24.7% | 18.9% | 18.1% |
| Operating Margins Growth | n/a | -23.48% | -4.23% |
| Earnings Per Share | $7.23 | $5.42 | $5.8 |
| EPS Growth | n/a | -25.03% | 7.01% |
| Free Cash Flow (MM) | $1,078 | -$4,257 | -$2,108 |
| FCF Growth | n/a | -495.0% | 50.49% |
| Capital Expenditures (MM) | -$5,226 | -$9,208 | -$9,328 |
| Net Debt / EBITDA | -0.61 | -1.66 | -0.65 |
ZTO Express Is Reasonably Priced:
Compared to the Industrials sector's average of 21.46, ZTO Express has a trailing twelve month price to earnings (P/E) ratio of 23.8 and, based on its EPS guidance of 1.45, an expected P/E ratio of 19.1.
ZTO Express is undervalued in terms of its assets because its price to book (P/B) ratio is 0.4 compared to its sector average of 3.7. The company's shares are currently trading -70.7% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 6.15 * 64.113) = $94.19
ZTO Express Is the Subject of Mixed Market Indicators:
22 analysts are following ZTO Express and have set target prices ranging from $24.02 to $39.33 per share. On average, they have given the company a rating of buy. At the current price of $27.63, ZTO is trading -17.2% away from its average analyst target price of $33.37 per share, implying an analyst consensus of some upside potential for the stock.
