Facts You Need to Understand ZTO Express Stock

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.