Ermenegildo Zegna N.V. Ordinary Shares (ZGN)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Zegna as a luxury apparel maker with a global footprint and 7,600 employees, but the figures presented do not describe a high-quality bargain. FairStock calculations tied to the 2026-10-13 close of $12.94 show a market cap of $3.2B, a P/E of 38.06, and a P/B of 2.96. Against that, FairStock shows return on equity of 8.72% and return on capital employed of only 3.57%. Those are modest returns for a branded consumer business and suggest that any economic moat is not showing up in the numbers. The balance sheet gives me pause: debt-to-equity is 1.05, the Altman Z-Score is 1.45, and the Piotroski F-Score is 0/9. That combination points to leverage and weak financial momentum. The Graham Number is $4.33, far below the recent $12.94 price, for a margin of safety of -198.85%; in other words, the price is not offering a Graham-style discount. The 1.11% dividend yield is modest, and the beta of 0.88 suggests the shares have been less volatile than the market, but that is not enough to offset the valuation. Growth is unclear because revenue and profit growth are listed as N/A, and the Lynch category is none because there are not yet three years of filed results. I would want to see several years of rising returns, falling leverage, and improving financial scores before treating this as a durable compounding story. At today's price, the stock looks expensive relative to the business quality shown.

In plain English: Ermenegildo Zegna makes luxury clothing and accessories for men, women, and children and sells them worldwide. The numbers suggest the business is not very strong: it earns low returns on the money invested in it, carries meaningful debt, and gets weak financial-health scores. At the recent share price, the stock looks expensive compared with its earnings and book value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer