ZGNErmenegildo Zegna N.V.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (3.1×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
A balanced mix of margins, efficiency, and leverage. ROE 10% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ZGN?
Ermenegildo Zegna N.V. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.3 points above what the capital costs: growth creates value
- Operating margin
- 7.3%
Operating margin · Apparel Manufacturing median 7.3% · fiscal year to FY2025
- Cash conversion
- 3.08×
Cash conversion · 2.40× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.8%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −2.2% |
| FY2021 | −7.3% |
| FY2022 | 9.9% |
| FY2023 | 11% |
| FY2024 | 8.6% |
| FY2025 | 7.3% |
Details›
- Gross marginfiscal year to FY2025
- 68%
- Operating marginfiscal year to FY2025
- 7.3%
- Net marginfiscal year to FY2025
- 5.1%
- Free cash flow margin
- 13%
- Revenue, trailing twelve months
- $1.92B
- Free cash flow, trailing twelve months
- $255M
- Net income, trailing twelve months
- $99M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Apparel Manufacturing
Ranks #6 of 12 by RyuScore