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Zalando SE (DE:ZAL)
XETRA:ZAL

Zalando (ZAL) AI Stock Analysis

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Zalando

(XETRA:ZAL)

Rating:65Neutral
Price Target:
€29.00
▲(3.24%Upside)
Zalando's strong financial performance is the primary positive factor, contributing significantly to the overall score. However, bearish technical indicators and a moderate valuation score detract from the overall attractiveness. The absence of earnings call insights and corporate events means these areas did not influence the score.
Positive Factors
Competitive Positioning
Competitive pressure from companies like Shein and Temu has eased, which could benefit Zalando's market position.
Free Cash Flow and Investor Preference
Zalando is a strongly free cash flow-generative market share winner with opportunities for margin and value expansion, aligning with recent investor preferences.
Market Share Opportunities
Zalando is expected to gain market share due to an acceleration in online penetration rates in the fashion category.
Negative Factors
Consumer Environment
In a tricky consumer environment, it is believed that Zalando will find it difficult to accelerate growth significantly to meet its GMV guide.
Growth Challenges
Zalando has a growth problem vs. expectations because online penetration will increase slower than pre-pandemic.
Valuation Concerns
The stock still trades on a high price-to-earnings ratio, which challenges the growth expectations.

Zalando (ZAL) vs. iShares MSCI Germany ETF (EWG)

Zalando Business Overview & Revenue Model

Company DescriptionZalando (ZAL) is a leading European e-commerce company specializing in fashion and lifestyle products. Founded in 2008 and headquartered in Berlin, Germany, Zalando offers a wide range of clothing, footwear, accessories, and beauty products from a variety of brands. The company serves millions of customers across multiple European countries through its online platforms and apps, providing an extensive selection of products and a seamless shopping experience.
How the Company Makes MoneyZalando makes money primarily through the sale of fashion and lifestyle products on its online platforms. The company's revenue model is based on direct sales from its inventory as well as a platform business model where third-party sellers list and sell their products on Zalando's marketplace. In addition to product sales, Zalando generates revenue through advertising services, allowing brands to promote their products on its platforms. The company also benefits from strategic partnerships with fashion brands and logistics services that enhance its supply chain efficiency and customer reach. Zalando's focus on technological innovation, personalized shopping experiences, and a strong logistics network further contribute to its earnings by improving customer satisfaction and operational efficiency.

Zalando Financial Statement Overview

Summary
Zalando exhibits strong financial health with consistent revenue growth and stable profitability metrics. The cash flow is notably robust, demonstrating efficient operational management. However, the net profit margin has room for improvement, and increased leverage could present risks if profitability declines.
Income Statement
78
Positive
Zalando has shown consistent revenue growth with a notable increase from 2020 to 2025. The TTM Gross Profit Margin stands at 40.86% and the Net Profit Margin at 2.51%, reflecting strong profitability. The EBIT margin is 3.83%, and the EBITDA Margin is 7.67%, both indicating healthy operational efficiency. While margins are stable, the net profit margin shows room for improvement.
Balance Sheet
75
Positive
The debt-to-equity ratio is 0.64, indicating a manageable level of debt relative to equity. The return on equity (ROE) is 10.04%, showcasing effective use of shareholders' funds. The equity ratio is 33.17%, suggesting a balanced capital structure. However, the company's leverage has increased from previous years, which could pose a risk if profitability decreases.
Cash Flow
82
Very Positive
Zalando's cash flow is robust with a Free Cash Flow to Net Income Ratio of 1.69, indicating strong cash generation from operations. The Operating Cash Flow to Net Income Ratio is 2.27, further emphasizing efficient cash conversion. There is a positive Free Cash Flow Growth Rate, highlighting strong cash flow management and growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.75B10.57B10.14B10.34B10.35B7.98B
Gross Profit4.39B4.30B3.68B4.06B4.33B3.39B
EBITDA824.80M811.30M555.30M395.30M648.10M596.20M
Net Income269.90M251.10M83.00M16.80M234.50M226.10M
Balance Sheet
Total Assets8.11B7.98B8.11B7.63B6.90B6.49B
Cash, Cash Equivalents and Short-Term Investments2.48B2.69B2.62B2.04B2.29B2.69B
Total Debt1.71B1.73B1.85B1.72B1.57B1.77B
Total Liabilities5.42B5.32B5.73B5.43B4.68B4.34B
Stockholders Equity2.69B2.67B2.37B2.20B2.22B2.15B
Cash Flow
Free Cash Flow454.90M447.30M686.30M108.30M283.30M277.30M
Operating Cash Flow613.10M654.10M949.50M459.90M616.20M527.40M
Investing Cash Flow-639.50M-269.80M-320.70M-476.20M-335.90M-217.80M
Financing Cash Flow-315.70M-325.60M-123.60M-245.90M-639.80M1.35B

Zalando Technical Analysis

Technical Analysis Sentiment
Negative
Last Price28.09
Price Trends
50DMA
30.13
Negative
100DMA
31.91
Negative
200DMA
31.40
Negative
Market Momentum
MACD
-0.62
Negative
RSI
45.30
Neutral
STOCH
68.60
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 28.09 is above the 20-day moving average (MA) of 28.00, below the 50-day MA of 30.13, and below the 200-day MA of 31.40, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 68.60 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEZAL
65
Neutral
€7.29B27.0010.57%6.14%140.08%
64
Neutral
€734.45M50.353.90%33.13%
62
Neutral
$16.90B11.24-7.48%2.95%1.60%-23.76%
DEAG1
56
Neutral
$5.81B106.318.72%24.93%
DEKTA
51
Neutral
€139.06M8.26-44.46%21.64%-30.93%-215.26%
DEMRX
44
Neutral
€46.29M-77.36%-6.33%-65.26%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:ZAL
Zalando
28.09
4.50
19.08%
DE:TNIE
tonies SE Class A
5.79
-0.91
-13.58%
DE:KTA
Knaus Tabbert AG
13.40
-25.40
-65.46%
DE:MRX
Mister Spex SE
1.36
-1.52
-52.78%
DE:AG1
AUTO1 Group SE
26.46
20.25
326.09%
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.Date of analysis: Jun 20, 2025