Zalando SE (DE:ZAL)
XETRA:ZAL
Top Page
Zalando
(XETRA:ZAL)
Select Model
Select Model
Rating:64Neutral
Price Target:
€25.00
▲(17.15% Upside)
Action:ReiteratedDate:03/14/26
The score is primarily supported by strong free cash flow and an improving balance sheet. It is held back by thin and pressured profitability and mixed technical signals (negative MACD and below the 200-day average), with valuation also somewhat rich given a ~30.7 P/E and no dividend yield provided.
Positive Factors
Strong free cash flow generation
Sustained high free cash flow (FCF €1.03B) and operating cash flow provide durable internal funding for capex, logistics, and marketplace expansion. FCF being ~4.8x net income in 2025 indicates robust cash conversion that supports reinvestment and balance-sheet repair over the medium term.
Negative Factors
Thin and compressing margins
Very slim net and EBIT margins limit the firm's ability to convert revenue into sustainable profits and make results sensitive to cost inflation, marketing and delivery spend. Year-over-year margin compression erodes room for reinvestment or margin recovery over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained high free cash flow (FCF €1.03B) and operating cash flow provide durable internal funding for capex, logistics, and marketplace expansion. FCF being ~4.8x net income in 2025 indicates robust cash conversion that supports reinvestment and balance-sheet repair over the medium term.
Read all positive factors
Zalando (ZAL) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€5.57B
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)30.7
Beta (1Y)1.03
Revenue Growth12.06%
EPS Growth18.20%
CountryDE
Employees15,463
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.42
Shares Outstanding264,181,980
10 Day Avg. Volume1,116,364
30 Day Avg. Volume1,158,094
Financial Highlights & Ratios
PEG Ratio-2.13
Price to Book (P/B)2.34
Price to Sales (P/S)0.53
P/FCF Ratio6.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€34.21Price Target Upside60.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.52
Revenue Forecast (FY)€14.06B
Zalando Business Overview & Revenue Model
Company Description
Zalando SE operates an online platform for fashion and lifestyle products. It provides clothing, footwear, accessories, and beauty products with free delivery and returns. The company also sells its products through its Zalando Lounge; and brick-a...
How the Company Makes Money
Zalando generates revenue primarily through its online sales of fashion and lifestyle products. The company's revenue model consists of several key streams: direct sales, where Zalando buys inventory from brands and sells it to consumers; marketpl...
Zalando Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.35B | 10.57B | 10.14B | 10.34B | 10.35B |
| Gross Profit | 4.61B | 4.30B | 3.68B | 4.06B | 4.33B |
| EBITDA | 812.80M | 811.30M | 572.50M | 395.30M | 660.20M |
| Net Income | 215.10M | 251.10M | 83.00M | 16.80M | 234.50M |
Balance Sheet | |||||
| Total Assets | 9.69B | 7.98B | 8.11B | 7.63B | 6.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.88B | 2.69B | 2.62B | 2.04B | 2.29B |
| Total Debt | 1.44B | 1.73B | 1.85B | 1.72B | 1.57B |
| Total Liabilities | 6.87B | 5.32B | 5.73B | 5.43B | 4.68B |
| Stockholders Equity | 2.83B | 2.67B | 2.37B | 2.20B | 2.22B |
Cash Flow | |||||
| Free Cash Flow | 1.03B | 447.30M | 686.30M | 108.30M | 283.30M |
| Operating Cash Flow | 1.13B | 654.10M | 949.50M | 459.90M | 616.20M |
| Investing Cash Flow | -1.08B | -269.80M | -320.70M | -476.20M | -335.90M |
| Financing Cash Flow | -756.40M | -325.60M | -123.60M | -245.90M | -639.80M |
Zalando Technical Analysis
Negative
21.34
Price Trends
22.17
Negative
23.00
Negative
24.58
Negative
Market Momentum
0.15
Negative
47.17
Neutral
31.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ZAL, the sentiment is Negative. The current price of 21.34 is above the 20-day moving average (MA) of 21.28, below the 50-day MA of 22.17, and below the 200-day MA of 24.58, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 47.17 is Neutral, neither overbought nor oversold. The STOCH value of 31.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:ZAL.
Zalando Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | €1.32B | -149.00 | 8.50% | ― | 29.34% | ― | |
64 Neutral | €5.57B | 30.68 | 7.72% | ― | 12.06% | 18.20% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | €126.81M | -2.77 | -66.04% | 23.02% | -25.17% | -487.87% | |
47 Neutral | €3.57B | 82.57 | 12.17% | ― | 31.25% | ― | |
43 Neutral | €42.55M | -2.71 | -107.88% | ― | -16.95% | -24.45% |
* Consumer Cyclical Sector Average
DE:ZAL
Zalando
21.47
-10.47
-32.78%
DE:TNIE
tonies SE Class A
10.40
4.90
89.09%
DE:MRX
Mister Spex SE
1.25
-0.39
-23.78%
DE:KTA
Knaus Tabbert AG
12.22
-2.12
-14.78%
DE:AG1
AUTO1 Group SE
16.18
-5.22
-24.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.