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Zalando SE ZAL

Morningstar Rating
€24.18 +0.24 (1.00%)
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Company Report

Zalando Should Benefit From Online Industry Consolidation

Zalando is the leading European pure-play e-commerce fashion platform. We believe that through its wide reach (almost 50 million active customers or over 10% of the addressable population in markets where it is present and over 7,000 brands represented), it benefits from traces of network, cost, and intangible asset advantage. Although we don’t think these advantages are currently strong enough to warrant a moat, we think the intangible asset advantage should strengthen over time as more customer traffic data is accumulated and better analytics allow for improved conversion rates and customer loyalty.

Price vs Fair Value

ZAL is trading at a 690% premium.
Price
€24.18
Fair Value
€39.00
Uncertainty
High
1-Star Price
€74.46
5-Star Price
€55.40
Economic Moat
Ykxyr
Capital Allocation
Yzqxljhc

Bulls Say, Bears Say

Bulls

As the biggest pure-play online pan-European fashion retailer, Zalando is well positioned to benefit from the shift of fashion buying from brick-and-mortar stores to online.

Bears

Amazon may become a significant competitor for Zalando in the European market, given its significant customer base, access to vast quantity of data, and commitment to establishing itself in the fashion category.

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Trading Information

Previous Close Price
€23.94
Day Range
€24.1824.18
52-Week Range
€16.20104.95
Bid/Ask
€0.00 / €0.00
Market Cap
€6.30 Bil
Volume/Avg
0 / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
27.73
Price/Sales
0.65
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.05%

Company Profile

Zalando, founded in 2008, is Europe’s biggest pure-play online fashion platform. Zalando is present in 25 European countries and its major market is the DACH region, comprising Germany, Austria, and Switzerland, which accounts for around 44% of fashion stores' revenue. The company commands around 12% market share in European online apparel sales. It has 12 fulfilment centers and offers over 7,000 brands on its platform. In 2023, Zalando had almost 50 million active users (more than 10% of the population in countries where the firm has a presence).
Sector
Consumer Cyclical
Industry
Internet Retail
Stock Style Box
Mid Growth
Total Number of Employees
15,497

Competitors

Valuation

Metric
ZAL
AMZN
ASC
Price/Earnings (Normalized)
27.7350.58
Price/Book Value
2.608.790.70
Price/Sales
0.653.280.13
Price/Cash Flow
10.6518.2215.84
Price/Earnings
ZAL
AMZN
ASC

Financial Strength

Metric
ZAL
AMZN
ASC
Quick Ratio
0.960.830.61
Current Ratio
1.531.071.51
Interest Coverage
2.5115.35−3.66
Quick Ratio
ZAL
AMZN
ASC

Profitability

Metric
ZAL
AMZN
ASC
Return on Assets (Normalized)
2.45%11.69%−1.65%
Return on Equity (Normalized)
7.96%31.44%−5.91%
Return on Invested Capital (Normalized)
5.12%17.95%0.29%
Return on Assets
ZAL
AMZN
ASC
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