Is the business good?
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.
16%
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 6.1% · fiscal year to FY2025
- Cash conversion
- 0.74×
Cash conversion · 0.71× a year ago · some of the reported profit has not turned into cash yet
- 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 from the cash flow statement.
Integrated Freight & Logistics
Ranks #2 of 10 by Smart Score