Where ZTO Express (Cayman) Stands With Analysts

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on ZTO Express (Cayman) ZTO in the last three months.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated ZTO Express (Cayman) and provided 12-month price targets. The average target is $21.65, accompanied by a high estimate of $23.00 and a low estimate of $19.00. A 13.85% drop is evident in the current average compared to the previous average price target of $25.13.

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of ZTO Express (Cayman)'s perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines 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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of ZTO Express (Cayman) compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for ZTO Express (Cayman)'s future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into ZTO Express (Cayman)'s market standing. Stay informed and make well-considered decisions with 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 chair, 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.

A Deep Dive into ZTO Express (Cayman)'s Financials

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Over the 3M period, ZTO Express (Cayman) showcased positive performance, achieving a revenue growth rate of 21.66% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 19.61%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): ZTO Express (Cayman)'s ROE excels beyond industry benchmarks, reaching 4.13%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): ZTO Express (Cayman)'s financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.73%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.28.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

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.

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