ZTO Express (Cayman) Inc. American Depositary Shares each representing one Class A ordinary share. (ZTO)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

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

ZTO Express is a Chinese logistics operator moving parcels and providing less-than-truckload, warehousing, distribution and freight forwarding services. In fiscal Q2 2026, the latest reported quarter, revenue was $14.5B and net income $3.1B, a 20.97% net margin. The supplied growth figures show 21.95% revenue growth against 6.28% profit growth, so the top line is expanding faster than the bottom line—often a sign of price competition or cost pressure in express delivery. Still, the business earned a 16.28% return on equity per FairStock, and it generated $6.0B in trailing free cash flow, a 30.5% free cash flow yield against a $19.5B market cap. At the 2026-10-13 close of $20.67, FairStock calculates a P/E of 10.82, P/B of 1.67, EV/EBITDA of 2.59 and PEG of 1.72. The Graham Number is $59.96, implying a 65.53% margin of safety—a wide gap, though I treat such formulas as rough guides. Debt/equity is modest at 0.35, and a Piotroski F-score of 8/9 signals improving fundamentals. But return on capital employed is only 7.38%, and the Altman Z-score of 1.40 is weak, so the balance sheet is not fortress-like. The beta of -0.23 is unusual and may reflect limited historical trading or China-specific factors. FairStock’s 71/100 score and a “none” Lynch category—only 0 years of filed results, need 3—warn that the record is short for classification. I would want durable pricing power and consistent cash conversion before calling it a classic bargain.

In plain English: ZTO Express moves packages and provides freight, warehouse and delivery services in China. The company is profitable and produces a lot of cash compared with its market value, and its shares look cheaper than many companies based on the numbers given. However, profit is growing more slowly than sales, and some financial-risk measures are not strong.

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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