Zto Express Intrinsic Value – ZTO EXPRESS Reports Earnings Results for Q2 of FY2023
October 21, 2023
🌥️Earnings Overview
For the second quarter of FY2023, ZTO EXPRESS ($NYSE:ZTO) reported total revenue of CNY 9.7 billion, an increase of 12.5% year-over-year. Net income for the period amounted to CNY 2.5 billion, representing a 40.3% rise from the same quarter of the prior year.
Share Price
On Wednesday, ZTO EXPRESS reported its earnings results for Q2 of FY2023. The company’s stock opened at $23.5 and closed at $24.5, representing a 2.0% decrease from the prior day’s closing price of 25.0. ZTO EXPRESS attributed the revenue growth to an increase in the number of customers and high order volumes, which resulted in increased demand for its services. The company also managed to reduce its operating expenses through efficient cost management and more efficient utilization of resources. Despite the revenue growth, ZTO EXPRESS reported an overall decrease in net income due to higher operating expenses and higher non-operating expenses, such as taxes and interest payments.
The company stated that these higher expenses were mainly due to increased investments in marketing and research & development initiatives, which have been necessary to stay competitive in its industry. Overall, investors seemed to react positively to ZTO EXPRESS’s Q2 earnings report. Although the stock closed down by 2.0%, it was still able to outperform the broader markets and hold steady compared to its prior closing price. Going forward, the company will continue to work on improving its efficiency and efficiency in order to remain competitive and boost its financial performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Zto Express. More…
| Total Revenues | Net Income | Net Margin |
| 37.54k | 8.31k | 21.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Zto Express. More…
| Operations | Investing | Financing |
| 13.09k | -18.53k | 3.5k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Zto Express. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 82.05k | 25.72k | 68.42 |
Key Ratios Snapshot
Some of the financial key ratios for Zto Express are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.7% | 21.9% | 27.8% |
| FCF Margin | ROE | ROA |
| 15.1% | 11.9% | 7.9% |
Analysis – Zto Express Intrinsic Value
At GoodWhale, our team of experts has analyzed the fundamentals of ZTO EXPRESS and are able to provide a fair value of their share. By using our proprietary Valuation Line, we have calculated that the fair price of the ZTO EXPRESS share is around $30.3. Currently, however, the stock is traded at $24.5, which is a fair price undervalued by 19.2%. This presents an opportunity for investors to pick up a high-quality stock at a discounted rate. More…
Summary
ZTO Express posted strong second quarter financial results, with total revenue up 12.5% year-over-year to CNY 9.7 billion and net income 40.3% higher at CNY 2.5 billion. The company’s strong performance is driven by strong demand for its logistics services, along with efficient cost management. This indicates that the company is well-positioned for continued growth in the future and provides a strong opportunity for investors. The results demonstrate ZTO Express’ ability to capitalize on market opportunities and its potential to continue delivering long-term positive returns to investors.
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