Navigating 4 Analyst Ratings For ZTO Express (Cayman)

In the latest quarter, 4 analysts provided ratings for ZTO Express (Cayman) ZTO, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $28.98, a high estimate of $30.00, and a low estimate of $26.90. A decline of 0.24% from the prior average price target is evident in the current average.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive ZTO Express (Cayman) is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to ZTO Express (Cayman). This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of ZTO Express (Cayman) compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of ZTO Express (Cayman)'s stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of ZTO Express (Cayman)'s market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on ZTO Express (Cayman) analyst ratings.

Unveiling the Story Behind ZTO Express (Cayman)

ZTO Express is China's largest express delivery company by parcel volume, with a volume share of 22.1% in 2022. It operates a network partner model where it provides line-haul transportation and sorting services, while its local network partners provide first-mile pickup and last-mile delivery services under the ZTO brand name. Headquartered in Shanghai, the company was founded in 2002 by Meisong Lai, who remains the Chairman, CEO, and its major shareholder with 77% voting rights as of June 30, 2023. ZTO's strategic shareholder is leading China e-commerce company, Alibaba Group, with around an 11.7% interest.

Understanding the Numbers: ZTO Express (Cayman)'s Finances

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: ZTO Express (Cayman) displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 10.87%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: ZTO Express (Cayman)'s net margin is impressive, surpassing industry averages. With a net margin of 14.32%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): ZTO Express (Cayman)'s ROE excels beyond industry benchmarks, reaching 2.42%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): ZTO Express (Cayman)'s ROA stands out, surpassing industry averages. With an impressive ROA of 1.6%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.27, ZTO Express (Cayman) adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.