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Zalando SE (ZAL) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Zalando SE

ZALMarket cap $6.08BPrice $25.2

Country🇩🇪Germany

SectorConsumer

IndustrySpecialty Retail

Zalando sells fashion and lifestyle products across Europe through its online platform, serving over 50 million active customers. It's Europe's go-to digital wardrobe, blending retail with logistics so seamlessly that brands trust it to run their own online shops too.

In Bastion Portfolios?

52W Return-17%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+9%7

Revenue Forecast

Rev CAGR (1y)+7%5

Rev CAGR (3y)+8%6

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1+95%10

EPS Growth Y+2+17%8

EPS Growth Y+3+22%8

Quality

Margins

EBIT Margin3%2

Net Income Margin1%2

Free Cash Flow Margin7%5

Debt

Net Debt/EBITDA-0.110

Efficiency

ROE4%3

ROA1%3

Earnings Stability44

GEAR+AVERAGE52

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)127

P/E Ratio (Forward 3y)98

P/BV2.16

EV Multiples

EV/EBITDA Fwd510

EV/EBIT Fwd89

Yield

Free Cash Flow Yield16.9%10

Dividend Yieldna–

Momentum

Short term

1 month return-6%4

3 month return-18%2

YTD return-12%3

Mid term

Price vs 52wHigh74%4

1 year return-16%3

Long term

3 year return+2%3

5 year return-71%1

Risk Shield

Price Risk

Beta0.95

Volatility43%4

Free Cash Flow

Free Cash Flow Margin7%5

Free Cash Flow Yield16.9%10

Quality

ROCE10%6

Earnings Stability44

Net Debt/EBITDA-0.110

02Growth

Is it actually growing, and how fast?

ZALZalando

Revenue FY25$14.5B

GROWTH RATING↗

AVERAGE61 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+9%7

Revenue, next 1Y+7%5

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+95%10

EPS growth, FY27E+17%8

EPS growth, FY28E+22%8

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 9%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Earnings are set to grow faster than sales (EPS about 22%/yr vs revenue 8%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 61% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 9%/yr over the last 3 years and is set to keep growing around 8%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower.

03Price Momentum

Is the market behind it right now?

ZALZalando

Total return Current−34.0%

Price return Current−34.0%

MOMENTUM RATING↗

VERY WEAK12 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-18%2

YTD return-12%3

MID & LONG-TERM▾SCORE

% of 52-week high74%4

1-year return-16%3

3-year return+2%3

5-year return-71%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-6%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+1.9% over three years and -71% over five), behind 80% of the market.

It's down 16% over the past year, now 26% below its 52-week high. That is a touch behind the market.

The stock is underperforming over three months (-18%) and so far this year (-12%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Zalando. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

ZALZalando

Revenue FY25$14.5B

GROWTH RATING↗

AVERAGE61 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+9%7

Revenue, next 1Y+7%5

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+95%10

EPS growth, FY27E+17%8

EPS growth, FY28E+22%8

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 9%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Earnings are set to grow faster than sales (EPS about 22%/yr vs revenue 8%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 61% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 9%/yr over the last 3 years and is set to keep growing around 8%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower.

03Price Momentum

Is the market behind it right now?

ZALZalando

Total return Current−34.0%

Price return Current−34.0%

MOMENTUM RATING↗

VERY WEAK12 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-18%2

YTD return-12%3

MID & LONG-TERM▾SCORE

% of 52-week high74%4

1-year return-16%3

3-year return+2%3

5-year return-71%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-6%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+1.9% over three years and -71% over five), behind 80% of the market.

It's down 16% over the past year, now 26% below its 52-week high. That is a touch behind the market.

The stock is underperforming over three months (-18%) and so far this year (-12%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Zalando. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community