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Zalando SE (DE:ZAL)
XETRA:ZAL
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Zalando (ZAL) AI Stock Analysis

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DE:ZAL

Zalando

(XETRA:ZAL)

Rating:65Neutral
Price Target:
€29.00
▲(8.57%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
Market Share Opportunities
Zalando offers substantial market share opportunities due to its class-leading operational service, a wide selection of brands, and a strong position in faster-growing categories.
Strategic Partnerships
The partnership with NEXT is expected to raise awareness for ZEOS's integrated service offering, potentially marking an inflection point for brand and merchant traction.
Negative Factors
Competitive Market
Zalando has a growth problem vs. expectations because online penetration will increase slower than pre-pandemic.
Valuation Concerns
Zalando remains an expensive mature business with growth expectations that are too high.

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

Zalando Business Overview & Revenue Model

Company DescriptionZalando 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-and-mortar outlet stores in Berlin, Frankfurt, Cologne, Leipzig, Hamburg, Hanover, Münster, Stuttgart, Mannheim, and Ulm. It serves customers in 23 countries, including Austria, Belgium, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Slovakia, Slovenia, Spain, Sweden, Switzerland, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.
How the Company Makes MoneyZalando generates revenue primarily through the sale of fashion and lifestyle products via its online platform. The company's revenue model is based on direct sales, where it purchases inventory from brands and designers and sells these products to consumers at a markup. Additionally, Zalando operates a partner program, allowing brands and retailers to sell directly to customers through its platform, from which Zalando earns commission fees on each sale. The company also generates revenue through advertising services offered to brands, providing them with marketing solutions to increase their visibility on Zalando's platform. Key partnerships with renowned fashion brands and strategic logistics and technology collaborations further bolster its earnings by enhancing its value proposition and operational efficiency.

Zalando Financial Statement Overview

Summary
Zalando demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is stable, though leverage has slightly increased, warranting monitoring. Cash flow metrics are excellent, indicating strong operational efficiency. Improving net profit margins and managing leverage further will enhance financial stability.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.57B10.14B10.34B10.35B7.98B
Gross Profit4.30B3.68B4.06B4.33B3.39B
EBITDA811.30M555.30M395.30M648.10M596.20M
Net Income251.10M83.00M16.80M234.50M226.10M
Balance Sheet
Total Assets7.98B8.11B7.63B6.90B6.49B
Cash, Cash Equivalents and Short-Term Investments2.69B2.62B2.04B2.29B2.69B
Total Debt1.73B1.85B1.72B1.57B1.77B
Total Liabilities5.32B5.73B5.43B4.68B4.34B
Stockholders Equity2.67B2.37B2.20B2.22B2.15B
Cash Flow
Free Cash Flow447.30M686.30M108.30M283.30M277.30M
Operating Cash Flow654.10M949.50M459.90M616.20M527.40M
Investing Cash Flow-269.80M-320.70M-476.20M-335.90M-217.80M
Financing Cash Flow-325.60M-123.60M-245.90M-639.80M1.35B

Zalando Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.71
Price Trends
50DMA
28.85
Negative
100DMA
30.52
Negative
200DMA
31.32
Negative
Market Momentum
MACD
-0.39
Negative
RSI
42.14
Neutral
STOCH
23.43
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 26.71 is below the 20-day moving average (MA) of 27.95, below the 50-day MA of 28.85, and below the 200-day MA of 31.32, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
€771.23M52.873.90%33.13%
65
Neutral
€7.10B26.2710.57%6.14%140.08%
65
Neutral
€20.20B10.137.83%3.17%0.85%-38.46%
57
Neutral
€65.36M-77.36%-6.33%-65.26%
48
Neutral
€1.15B-47.97%3.44%5.93%
47
Neutral
€139.68M8.26-44.46%21.55%-30.93%-215.26%
$6.32B110.848.72%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:ZAL
Zalando
26.71
2.65
11.01%
DE:TNIE
tonies SE Class A
6.08
0.06
1.00%
DE:MRX
Mister Spex SE
1.91
-0.87
-31.29%
DE:YOU
ABOUT YOU Holding SE
6.77
3.40
100.89%
DE:KTA
Knaus Tabbert AG
13.38
-17.12
-56.13%
ATOGF
AUTO1 Group SE
29.35
21.97
297.70%
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