Zalando SE (DE:ZAL)
XETRA:ZAL
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Zalando
(XETRA:ZAL)
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Rating:64Neutral
Price Target:
€22.00
▼(-2.53% Downside)
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 cash generation
Zalando's 2025 operating cash flow (€1.13B) and free cash flow (€1.03B) demonstrate durable cash conversion. High FCF relative to accounting earnings (≈4.8x net income) provides recurring capacity to fund logistics, tech and partner investments, de-lever or return cash while insulating operations from short-term earnings swings.
Negative Factors
Thin and compressed margins
Persistently low margins limit the company's ability to generate durable profitability despite scale. Margin compression in 2025 reduces earnings resilience to cost inflation or competitive price pressure, constraining free cash flow sustainability if revenue growth slows or investments increase.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Zalando's 2025 operating cash flow (€1.13B) and free cash flow (€1.03B) demonstrate durable cash conversion. High FCF relative to accounting earnings (≈4.8x net income) provides recurring capacity to fund logistics, tech and partner investments, de-lever or return cash while insulating operations from short-term earnings swings.
Read all positive factors
Zalando (ZAL) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€5.86B
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)30.7
Beta (1Y)1.05
Revenue Growth12.06%
EPS Growth18.20%
CountryDE
Employees15,463
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.42
Shares Outstanding264,193,970
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 Upside51.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.53
Revenue Forecast (FY)€14.05B
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 primarily makes money through a mix of retail sales, partner-driven marketplace/commission income, and business-to-business (B2B) platform services. (1) Retail (wholesale) revenue: Zalando purchases inventory from brands and sells it direc...
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
Positive
22.57
Price Trends
21.29
Positive
22.76
Negative
24.17
Negative
Market Momentum
0.10
Negative
55.25
Neutral
82.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ZAL, the sentiment is Positive. The current price of 22.57 is above the 20-day moving average (MA) of 21.73, above the 50-day MA of 21.29, and below the 200-day MA of 24.17, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ZAL.
Zalando Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | €2.54B | 10.00 | 17.17% | 3.86% | 0.09% | 4.22% | |
64 Neutral | €5.86B | 30.68 | 7.72% | ― | 12.06% | 18.20% | |
59 Neutral | €103.26M | -1.02 | -36.61% | ― | -11.28% | 54.27% | |
58 Neutral | €131.17M | 20.15 | -0.48% | ― | 21.61% | 92.36% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | €3.66B | -5.10 | -30.05% | 2.83% | -2.90% | -211.60% | |
45 Neutral | €44.42M | -0.93 | -49.02% | ― | -16.95% | -24.45% |
* General Sector Average
DE:ZAL
Zalando
22.57
-11.27
-33.30%
DE:PUM
PUMA SE NPV
24.96
5.66
29.35%
DE:BOSS
Hugo Boss
36.78
3.84
11.66%
DE:GFG
Global Fashion Group
0.45
0.20
80.80%
DE:BIKE
Bike24 Holding AG
2.97
1.22
69.71%
DE:MRX
Mister Spex SE
1.31
-0.06
-4.04%
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.