Skip to Content

ZTO Express (Cayman) Inc ADR ZTO

Morningstar Rating
$20.05 −0.44 (2.15%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

ZTO Should See Slight Margin Decline in the Long Run Due to Price Competition

The network partner model-based companies in China have gained parcel volume share from direct operation-based companies, with share rising to 76% in 2022 from 66% in 2011. The six largest express delivery companies controlled around 86% of China’s parcel deliveries by volume in 2022, based on data from the companies and China’s State Post Bureau. With share already high, we think further volume share gain is limited for the network partner model-based companies.

Price vs Fair Value

ZTO is trading at a 463% premium.
Price
$20.49
Fair Value
$17.70
Uncertainty
High
1-Star Price
$61.79
5-Star Price
$6.19
Economic Moat
Lslghfd
Capital Allocation
Shkflkkgzq

Bulls Say, Bears Say

Bulls

If ZTO achieves the top end of its targeted 30%-40% market share by 2032, it implies faster-than-expected revenue growth and higher-than-expected economies of scale and profits.

Bears

A rising mix of a lower-margin non-express delivery business leads to faster deterioration of margin.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if ZTO is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$20.49
Day Range
$20.0520.31
52-Week Range
$15.9028.04
Bid/Ask
$20.04 / $20.30
Market Cap
$16.16 Bil
Volume/Avg
1.4 Mil / 3.6 Mil

Key Statistics

Price/Earnings (Normalized)
13.11
Price/Sales
3.12
Dividend Yield (Trailing)
3.03%
Dividend Yield (Forward)
3.03%
Total Yield
3.89%

Company Profile

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 the Chairman, 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.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Large Core
Total Number of Employees
23,554

Competitors

Valuation

Metric
ZTO
DHL
FDX
Price/Earnings (Normalized)
13.1113.6317.24
Price/Book Value
2.032.152.67
Price/Sales
3.120.610.87
Price/Cash Flow
9.706.136.47
Price/Earnings
ZTO
DHL
FDX

Financial Strength

Metric
ZTO
DHL
FDX
Quick Ratio
0.920.741.17
Current Ratio
1.150.951.31
Interest Coverage
33.187.2216.46
Quick Ratio
ZTO
DHL
FDX

Profitability

Metric
ZTO
DHL
FDX
Return on Assets (Normalized)
10.82%5.51%5.74%
Return on Equity (Normalized)
16.28%16.07%19.12%
Return on Invested Capital (Normalized)
12.09%9.19%8.22%
Return on Assets
ZTO
DHL
FDX
See how this stock stacks up to its competitors with Morningstar Investor

Integrated Freight & Logistics Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
United Parcel Service Inc Class B
UPS
JxxryfblrMbkm$121.8 Bil
FedEx Corp
FDX
GdkhbdzqmZktdwq$73.6 Bil
DHL Group
DPSTF
Vtxnrj$52.4 Bil
DHL Group ADR
DHLGY
YqrhptsBxjgz$52.4 Bil
JB Hunt Transport Services Inc
JBHT
HdwcsxtmfSylhmf$17.1 Bil
Expeditors International of Washington Inc
EXPD
QsdjdswqwkHxrr$16.9 Bil
C.H. Robinson Worldwide Inc
CHRW
BpppjxxwkWqtr$10.2 Bil
Landstar System Inc
LSTR
NtqzppzhpPhk$6.5 Bil
Hub Group Inc Class A
HUBG
SygfygkcJcnqwx$2.8 Bil

Sponsor Center