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ZAL

ZalandoXTRA:ZAL Stock Report

Market Cap

€20.1b

7D

1.0%

1Y

-2.9%

Updated

23 Oct, 2021

Data

Company Financials +
ZAL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
Financial Health5/6
Dividends0/6

ZAL Overview

Zalando SE operates as an online fashion and lifestyle retailer.

Zalando Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zalando
Historical stock prices
Current Share Price€80.14
52 Week High€73.60
52 Week Low€105.90
Beta1.14
1 Month Change-8.72%
3 Month Change-20.54%
1 Year Change-2.93%
3 Year Change140.73%
5 Year Change101.38%
Change since IPO272.74%

Recent News & Updates

Oct 03
Why Zalando SE (ETR:ZAL) Could Be Worth Watching

Why Zalando SE (ETR:ZAL) Could Be Worth Watching

Let's talk about the popular Zalando SE ( ETR:ZAL ). The company's shares received a lot of attention from a...

Sep 07
We Like These Underlying Return On Capital Trends At Zalando (ETR:ZAL)

We Like These Underlying Return On Capital Trends At Zalando (ETR:ZAL)

If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see...

Aug 25
These 4 Measures Indicate That Zalando (ETR:ZAL) Is Using Debt Safely

These 4 Measures Indicate That Zalando (ETR:ZAL) Is Using Debt Safely

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jul 30
Here's Why I Think Zalando (ETR:ZAL) Is An Interesting Stock

Here's Why I Think Zalando (ETR:ZAL) Is An Interesting Stock

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

May 28
Returns Are Gaining Momentum At Zalando (ETR:ZAL)

Returns Are Gaining Momentum At Zalando (ETR:ZAL)

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Shareholder Returns

ZALDE Online RetailDE Market
7D1.0%0.009%0.3%
1Y-2.9%22.8%24.5%

Return vs Industry: ZAL underperformed the German Online Retail industry which returned 22.8% over the past year.

Return vs Market: ZAL underperformed the German Market which returned 24.5% over the past year.

Price Volatility

Is ZAL's price volatile compared to industry and market?
ZAL volatility
ZAL Beta1.14
Industry Beta0.69
Market Beta1

Stable Share Price: ZAL is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ZAL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200815,822David Schneiderhttps://corporate.zalando.de

Zalando SE operates as an online fashion and lifestyle retailer. It offers a range of products, including shoes, apparel, accessories, and beauty products for women, men, and children, as well as free delivery and returns services. The company also sells its products through its Zalando Lounge; and brick-and-mortar stores in Berlin, Frankfurt, Cologne, Leipzig, Hamburg, Hanover, Münster, Stuttgart, Mannheim, and Ulm.

Zalando Fundamentals Summary

How do Zalando's earnings and revenue compare to its market cap?
ZAL fundamental statistics
Market Cap€20.12b
Earnings (TTM)€344.80m
Revenue (TTM)€9.39b

58.3x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZAL income statement (TTM)
Revenue€9.39b
Cost of Revenue€5.27b
Gross Profit€4.13b
Expenses€3.78b
Earnings€344.80m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 03, 2021

Earnings per share (EPS)1.37
Gross Margin43.92%
Net Profit Margin3.67%
Debt/Equity Ratio39.2%

How did ZAL perform over the long term?

See historical performance and comparison

Valuation

Is Zalando undervalued compared to its fair value and its price relative to the market?

32.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZAL (€80.14) is trading below our estimate of fair value (€119.26)

Significantly Below Fair Value: ZAL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZAL is poor value based on its PE Ratio (58.3x) compared to the German Online Retail industry average (28.3x).

PE vs Market: ZAL is poor value based on its PE Ratio (58.3x) compared to the German market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: ZAL is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ZAL is overvalued based on its PB Ratio (8.9x) compared to the DE Online Retail industry average (4.4x).


Future Growth

How is Zalando forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZAL's forecast earnings growth (22.1% per year) is above the savings rate (-0.01%).

Earnings vs Market: ZAL's earnings (22.1% per year) are forecast to grow faster than the German market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZAL's revenue (15.7% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: ZAL's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZAL's Return on Equity is forecast to be low in 3 years time (15.6%).


Past Performance

How has Zalando performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZAL has high quality earnings.

Growing Profit Margin: ZAL's current net profit margins (3.7%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: ZAL's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: ZAL's earnings growth over the past year (219.3%) exceeds its 5-year average (18.6% per year).

Earnings vs Industry: ZAL earnings growth over the past year (219.3%) exceeded the Online Retail industry 161.3%.


Return on Equity

High ROE: ZAL's Return on Equity (15.3%) is considered low.


Financial Health

How is Zalando's financial position?


Financial Position Analysis

Short Term Liabilities: ZAL's short term assets (€5.0B) exceed its short term liabilities (€2.9B).

Long Term Liabilities: ZAL's short term assets (€5.0B) exceed its long term liabilities (€1.6B).


Debt to Equity History and Analysis

Debt Level: ZAL's debt to equity ratio (39.2%) is considered satisfactory.

Reducing Debt: ZAL's debt to equity ratio has increased from 1.2% to 39.2% over the past 5 years.

Debt Coverage: ZAL's debt is well covered by operating cash flow (74.7%).

Interest Coverage: ZAL's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet


Dividend

What is Zalando current dividend yield, its reliability and sustainability?

0.018%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ZAL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ZAL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ZAL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZAL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZAL's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

David Schneider (39 yo)

no data

Tenure

€83,431

Compensation

Mr. David Schneider co-founded Zalando SE June 2008 and serves as its General Manager and Co-Chief Executive Officer, responsible for the fashion perspective and brand partners. Mr. Schneider serves as a L...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD97.05K) is below average for companies of similar size in the German market ($USD4.50M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ZAL's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: ZAL's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Zalando SE's employee growth, exchange listings and data sources


Key Information

  • Name: Zalando SE
  • Ticker: ZAL
  • Exchange: XTRA
  • Founded: 2008
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: €20.117b
  • Shares outstanding: 251.02m
  • Website: https://corporate.zalando.de

Number of Employees


Location

  • Zalando SE
  • Valeska-Gert-Strasse 5
  • Berlin
  • Berlin
  • 10243
  • Germany

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 18:01
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.