ZTOZTO Express (Cayman) Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.4×).
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 14% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ZTO?
ZTO Express (Cayman) Inc. earns 16% 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% · 7.0 points above what the capital costs: growth creates value
- Operating margin
- 21%
Operating margin · Integrated Freight & Logistics median 5.3% · fiscal year to FY2025
- Cash conversion
- 1.38×
Cash conversion · 1.28× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 19% |
| FY2021 | 18% |
| FY2022 | 22% |
| FY2023 | 26% |
| FY2024 | 27% |
| FY2025 | 21% |
Details›
- Gross marginfiscal year to FY2025
- 25%
- Operating marginfiscal year to FY2025
- 21%
- Net marginfiscal year to FY2025
- 18%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $49.1B
- Free cash flow, trailing twelve months
- $6.75B
- Net income, trailing twelve months
- $9.08B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Integrated Freight & Logistics
Ranks #1 of 8 by RyuScore