XTRA:ZAL

Stock Analysis Report

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

ZAL

-1.0%

DE Online Retail

0.3%

DE Market


1 Year Return

53.8%

ZAL

60.0%

DE Online Retail

13.8%

DE Market

Return vs Industry: ZAL underperformed the German Online Retail industry which returned 64.3% over the past year.

Return vs Market: ZAL exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

ZALIndustryMarket
7 Day-2.3%-1.0%0.3%
30 Day1.2%-0.2%1.3%
90 Day8.8%26.4%5.2%
1 Year53.8%53.8%60.6%60.0%17.4%13.8%
3 Year27.1%27.1%13.7%12.1%15.9%5.7%
5 Year91.8%91.8%65.5%61.9%27.9%10.6%

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?

160.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZAL (€45.64) is trading above our estimate of fair value (€19.57)

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 (159.3x) compared to the Online Retail industry average (18.9x).

PE vs Market: ZAL is poor value based on its PE Ratio (159.3x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: ZAL is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: ZAL is overvalued based on its PB Ratio (7.8x) compared to the DE Online Retail industry average (1.5x).


Next Steps

Future Growth

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

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZAL's forecast earnings growth (25% per year) is above the savings rate (-0.4%).

Earnings vs Market: ZAL's earnings (25% per year) are forecast to grow faster than the German market (13.2% per year).

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

Revenue vs Market: ZAL's revenue (13.6% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: ZAL's revenue (13.6% 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 (10.2%).


Next Steps

Past Performance

How has Zalando performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZAL has high quality earnings.

Growing Profit Margin: ZAL's current net profit margins (1.1%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: ZAL's earnings have declined by -4% per year over the past 5 years.

Accelerating Growth: ZAL's earnings growth over the past year (26.3%) exceeds its 5-year average (-4% per year).

Earnings vs Industry: ZAL earnings growth over the past year (26.3%) exceeded the Online Retail industry -6.1%.


Return on Equity

High ROE: ZAL's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zalando's financial position?


Financial Position Analysis

Short Term Liabilities: ZAL's short term assets (€2.8B) exceed its short term liabilities (€2.1B).

Long Term Liabilities: ZAL's short term assets (€2.8B) exceed its long term liabilities (€540.7M).


Debt to Equity History and Analysis

Debt Level: ZAL's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: ZAL's debt to equity ratio has reduced from 1.8% to 0.4% over the past 5 years.

Debt Coverage: ZAL's debt is well covered by operating cash flow (5127.4%).

Interest Coverage: ZAL's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet

Inventory Level: ZAL has a high level of physical assets or inventory.

Debt Coverage by Assets: ZAL's debt is covered by short term assets (assets are 457.6x debt).


Next Steps

Dividend

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

0.028%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.6%forecastin3Years0.03%

Current dividend yield vs market & industry

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

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

What is the CEO of Zalando's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average board tenure


CEO

David Schneider (37yo)

0yrs

Tenure

€19,351,297

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 ($USD21.53M) is above average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Board Age and Tenure

2.7yrs

Average Tenure

44yo

Average Age

Experienced Board: ZAL's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 2.6%.


Management Team

  • Philipp Erler (36yo)

    Senior Vice President of Digital Experience

    • David Schneider (37yo)

      Co-Founder

      • Compensation: €19.35m
    • Robert Gentz (36yo)

      Co-Founder

      • Compensation: €19.35m
    • Rubin Ritter (37yo)

      Co-CEO, GM & Member of the Management Board

      • Compensation: €19.35m
    • Moritz Hahn (40yo)

      Senior Vice President of Commercial Business - Zalando Fashion Store

      • Jan Wilmking (40yo)

        Senior VP of Private Brands & MD of Zlabels GmbH

        • Birgit Opp

          Vice President of Corporate Finance & Investor Relations

          • David Schröder

            CFO & Member of Management Board

            • Tenure: 0.8yrs
          • Rene Gribnitz

            Vice President of Communications

            • Jim Freeman

              CTO & Member of Management Board

              • Tenure: 0.8yrs

            Board Members

            • Cristina Stenbeck (42yo)

              Member of the Supervisory Board

              • Tenure: 0.7yrs
            • Alexander Samwer (44yo)

              Member of the Supervisory Board

              • Tenure: 6.1yrs
            • Anders Povlsen (47yo)

              Deputy Chairperson of the Supervisory Board

              • Tenure: 2.7yrs
            • Konrad Schäfers (33yo)

              Member of Supervisory Board

              • Tenure: 4.6yrs
            • Kelly Bennett (47yo)

              Member of the Supervisory Board

              • Tenure: 0.7yrs
            • Beate Siert (42yo)

              Member of Supervisory Board

              • Tenure: 4.6yrs
            • Jørgen Lindemann (53yo)

              Member of Supervisory Board

              • Tenure: 3.7yrs
            • Anthony Brew (40yo)

              Employee Representative Member of Supervisory Board

              • Tenure: 1.7yrs
            • Mariella Röhm-Kottmann (52yo)

              Member of the Supervisory Board

              • Tenure: 0.7yrs

            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: €11.445b
            • Shares outstanding: 248.69m
            • Website: https://corporate.zalando.de

            Number of Employees


            Location

            • Zalando SE
            • Tamara-Danz-Strasse 1
            • Berlin
            • Berlin
            • 10243
            • Germany

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            ZALWBAG (Wiener Boerse AG)YesOrdinary Bearer SharesATEUROct 2014
            ZALDB (Deutsche Boerse AG)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
            ZALXTRA (XETRA Trading Platform)YesOrdinary Bearer SharesDEEUROct 2014
            ZALETLX (Eurotlx)YesOrdinary Bearer SharesITEUROct 2014
            ZALSWX (SIX Swiss Exchange)YesOrdinary Bearer SharesCHCHFOct 2014
            ZAL NBMV (Bolsa Mexicana de Valores)YesOrdinary Bearer SharesMXMXNOct 2014
            ZLND.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 2 ORDUSUSDJul 2015
            ZAL1DB (Deutsche Boerse AG)UNSP ADR EACH REPR 2 ORDDEEURJul 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. The company also sells its products through its Zalando Lounge; and brick-and-mortar stores in Berlin, Frankfurt am main, and Cologne. 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 Analysis2020/01/26 22:28
            End of Day Share Price2020/01/24 00:00
            Earnings2019/09/30
            Annual Earnings2018/12/31


            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.