ZTO Express Cayman Inc is a top-notch express delivery and logistics company serving The Republic of China for 18 years with the speedy delivery of parcels through their self owned 6000 plus trucks and other freight forwarding services. NYSE: ZTO at https://www.webull.com/quote/nyse-zto directly influences China’s e-commerce industry as we know it merely stands on the transportation of goods between merchants and customers.
ZTO also stands tall in the stock market as it has the reputation of being the largest IPO in the U.S capital market in 2016.
Since January2020, the valuation graph of ZTO has only been on an uptrend. Its value observed to the upside in the last six months until recently it started retarding. But the price volatility has been low for three months that is a good sign that is attaining steady growth.
Valuation: ZTO stock opened with $34.25 value, currently on $34.88, which is running slower than the average value of ZTO stocks $36.6. So we can say that the stock price undervalued by 2%.
ZTO stocks are still performing well. We will give you five reasons to invest your money in ZTO stocks.
- ZTO Express owns a healthy balance sheet since the previous year, so we are not expecting the prices to fall drastically at least for the rest of the year and 2021.
- Price to Earnings ratio (P/E) is $35.7 which is much higher than the industrial average of $23.6. A similar metric was seen when compared to the market. Price to Book ratio (P/B) is 5.1. It may not be a desirable sign but this also means the investors expect highly of ZTO’s Future growth.
- The ZTO has a constant revenue growth that is increasing at a rate of more than 20% every year. In 2019, it was 24%.
- Where it really aces is its financial health. It is in a good position due to several factors. Its short term assets exceed the value of both its short term and long term liabilities by a huge margin.
- In the last five years, the debt to equity ratio has only reduced. Coming from 5.8%c to only 0.8%, they skilfully managed to achieve this by increasing the cash flow and paying out a lower share of interest than they earn.
With high growth, strong financial stability, ZTO stocks seem to be a good choice to invest. However, if you are currently holding shares, consider keeping it on hold. ZTO Express is yet to release its second Quarter Financial result 2020. Only after the U.S markets close on 12 August 2020, the nyseto prospects could be better analyzed during stocks after hours. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.