XTRA:ZAL

Stock Analysis Report

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Executive Summary

Zalando SE operates as an online fashion and lifestyle retailer in Europe.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Zalando's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZAL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.5%

ZAL

8.4%

DE Online Retail

2.1%

DE Market


1 Year Return

58.4%

ZAL

115.6%

DE Online Retail

2.1%

DE Market

Return vs Industry: ZAL underperformed the German Online Retail industry which returned 118.1% over the past year.

Return vs Market: ZAL exceeded the German Market which returned 3% over the past year.


Shareholder returns

ZALIndustryMarket
7 Day3.5%8.4%2.1%
30 Day1.8%16.5%-0.8%
90 Day69.6%68.1%20.1%
1 Year58.4%58.4%116.6%115.6%4.2%2.1%
3 Year67.0%67.0%110.4%104.9%3.7%-4.7%
5 Year96.8%96.8%71.1%66.6%10.7%-4.0%

Price Volatility Vs. Market

How volatile is Zalando's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

520.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZAL (€65.28) is trading above our estimate of fair value (€37.05)

Significantly Below Fair Value: ZAL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZAL is poor value based on its PE Ratio (520.7x) compared to the Online Retail industry average (18.8x).

PE vs Market: ZAL is poor value based on its PE Ratio (520.7x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: ZAL is poor value based on its PEG Ratio (15.7x)


Price to Book Ratio

PB vs Industry: ZAL is overvalued based on its PB Ratio (9.8x) compared to the DE Online Retail industry average (2.9x).


Next Steps

Future Growth

How is Zalando forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

33.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZAL's forecast earnings growth (33.1% per year) is above the savings rate (0.2%).

Earnings vs Market: ZAL's earnings (33.1% per year) are forecast to grow faster than the German market (22.4% per year).

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

Revenue vs Market: ZAL's revenue (14.2% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: ZAL's revenue (14.2% 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 (11.2%).


Next Steps

Past Performance

How has Zalando performed over the past 5 years?

-14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZAL has a high level of non-cash earnings.

Growing Profit Margin: ZAL's current net profit margins (0.5%) are lower than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: ZAL's earnings have declined by -14.2% per year over the past 5 years.

Accelerating Growth: ZAL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZAL had negative earnings growth (-36.6%) over the past year, making it difficult to compare to the Online Retail industry average (-11.5%).


Return on Equity

High ROE: ZAL's Return on Equity (1.9%) is considered low.


Next Steps

Financial Health

How is Zalando's financial position?


Financial Position Analysis

Short Term Liabilities: ZAL's short term assets (€3.1B) exceed its short term liabilities (€2.0B).

Long Term Liabilities: ZAL's short term assets (€3.1B) exceed its long term liabilities (€919.4M).


Debt to Equity History and Analysis

Debt Level: ZAL is debt free.

Reducing Debt: ZAL has no debt compared to 5 years ago when its debt to equity ratio was 1.7%.

Debt Coverage: ZAL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ZAL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.011%

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?

0.08yrs

Average board tenure


CEO

David Schneider (38yo)

no data

Tenure

€77,177

Compensation

Mr. David Schneider co-founded Zalando SE June 2008 and serves as its General Manager and Co-Chief Executive Officer. Mr. Schneider serves as a Limited Partner of several private companies, including zLabe ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD87.19K) is below average for companies of similar size in the German market ($USD5.21M).

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


Board Members

NamePositionTenureCompensationOwnership
Cristina Stenbeck
Chairman of the Supervisory Board1.17yrsno datano data
Anders Povlsen
Member of the Supervisory Board6.58yrsno data10.27% 1.7b
Jennifer Hyman
Supervisory Board Member0.083yrno datano data
Kelly Bennett
Deputy Chairman of the Supervisory Board0.083yrno datano data
Jørgen Lindemann
Independent Member of Supervisory Board4.17yrsno datano data
Mariella Röhm-Kottmann
Member of the Supervisory Board1.17yrsno datano data
Anika Mangelmann
Employee Representative Supervisor0.083yrno datano data
Jade Buddenberg
Employee Representative Supervisor0.083yrno datano data
Matti Ahtiainen
Employee Representative Supervisor0.083yrno datano data

0.08yrs

Average Tenure

48yo

Average Age

Experienced Board: ZAL's board of directors are not considered experienced ( 0.1 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 company bio, 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: €16.661b
  • Shares outstanding: 249.94m
  • Website: https://corporate.zalando.de

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZALDB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEUROct 2014
ZALXTRA (XETRA Trading Platform)YesOrdinary Bearer SharesDEEUROct 2014
ZALDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Bearer SharesGBEUROct 2014
0QXNLSE (London Stock Exchange)YesOrdinary Bearer SharesGBEUROct 2014
ZLDS.FOTCPK (Pink Sheets LLC)YesOrdinary Bearer SharesUSUSDOct 2014
ZALWBAG (Wiener Boerse AG)YesOrdinary Bearer SharesATEUROct 2014
ZALSWX (SIX Swiss Exchange)YesOrdinary Bearer SharesCHCHFOct 2014
ZAL NBMV (Bolsa Mexicana de Valores)YesOrdinary Bearer SharesMXMXNOct 2014
ZALETLX (Eurotlx)YesOrdinary Bearer SharesITEUROct 2014
ZLND.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJul 2015
ZAL1DB (Deutsche Boerse AG)UNSPONSORD ADRDEEURJul 2015

Biography

Zalando SE operates as an online fashion and lifestyle retailer in Europe. 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, and Stuttgart. Zalando SE was founded in 2008 and is headquartered in Berlin, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 20:51
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.