(ZGN) Ermenegildo Zegna - Overview
Sector: Consumer Cyclical | Industry: Apparel Manufacturing | Exchange: NYSE (USA) | Market Cap: 3.530m USD | Total Return: 46.5% in 12m
Industry Rotation: -26.2
Avg Turnover: 8.39M
EPS Trend: 12.8%
Qual. Beats: -1
Rev. Trend: 69.1%
Warnings
Choppy
Tailwinds
No distinct edge detected
Ermenegildo Zegna N.V. (ZGN) is an Italian luxury fashion house specializing in the design, manufacturing, and global distribution of high-end apparel and accessories. The company operates a multi-brand portfolio including its namesake ZEGNA label, Thom Browne, and TOM FORD FASHION, covering segments from formalwear and leisurewear to leather goods and fragrances.
The business model is characterized by vertical integration, as the company maintains significant control over its textile production and supply chain to ensure material quality. Within the luxury goods sector, this structure allows for higher margin retention and distinct positioning against competitors that rely more heavily on third-party manufacturing.
Distribution is managed through a mix of direct-to-consumer retail stores and digital platforms. Investors may find it useful to examine the companys detailed valuation metrics on ValueRay. Founded in 1910 and headquartered in Trivero, the firm remains a subsidiary of Monterubello Società Semplice.
- Direct-to-consumer expansion in China drives organic revenue growth and margin improvement
- Integration of Tom Ford Fashion acquisition impacts group profitability and debt levels
- High-net-worth consumer spending resilience mitigates broader luxury sector slowdown risks
- Thom Browne brand performance determines long-term valuation multiples beyond core tailoring
- Raw material cost fluctuations in wool and leather affect manufacturing gross margins
| Net Income: 175.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 4.95 > 1.0 |
| NWC/Revenue: 11.40% < 20% (prev 8.09%; Δ 3.31% < -1%) |
| CFO/TA 0.22 > 3% & CFO 619.7m > Net Income 175.3m |
| Net Debt (757.3m) to EBITDA (586.0m): 1.29 < 3 |
| Current Ratio: 1.59 > 1.5 & < 3 |
| Outstanding Shares: last quarter (266.3m) vs 12m ago 3.04% < -2% |
| Gross Margin: 64.12% > 18% (prev 0.64%; Δ 6.35k% > 0.5%) |
| Asset Turnover: 137.7% > 50% (prev 123.1%; Δ 14.59% > 0%) |
| Interest Coverage Ratio: 5.64 > 6 (EBITDA TTM 586.0m / Interest Expense TTM 61.4m) |
| A: 0.16 (Total Current Assets 1.19b - Total Current Liabilities 750.1m) / Total Assets 2.83b |
| B: 0.26 (Retained Earnings 739.3m / Total Assets 2.83b) |
| C: 0.12 (EBIT TTM 346.3m / Avg Total Assets 2.80b) |
| D: 0.31 (Book Value of Equity 535.4m / Total Liabilities 1.73b) |
| Altman-Z'' Score: 3.02 = A |
| DSRI: 0.96 (Receivables 260.4m/240.5m, Revenue 3.86b/3.41b) |
| GMI: 1.00 (GM 64.12% / 64.32%) |
| AQI: 0.97 (AQ_t 0.28 / AQ_t-1 0.28) |
| SGI: 1.13 (Revenue 3.86b / 3.41b) |
| TATA: -0.16 (NI 175.3m - CFO 619.7m) / TA 2.83b) |
| Beneish M-Score: -3.14 (Cap -4..+1) = AA |
Over the past week, the price has changed by -4.41%, over one month by +9.39%, over three months by +6.25% and over the past year by +46.52%.
- StrongBuy: 2
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 13.2 | 4.8% |
P/E Trailing = 29.2444
P/E Forward = 21.9298
P/S = 1.8415
P/B = 2.9147
Revenue TTM = 3.86b EUR
EBIT TTM = 346.3m EUR
EBITDA TTM = 586.0m EUR
Long Term Debt = 162.1m EUR (from longTermDebt, last quarter)
Short Term Debt = 224.9m EUR (from shortTermDebt, last quarter)
Debt = 977.4m EUR (from shortLongTermDebtTotal, last quarter)
Net Debt = 757.3m EUR (from netDebt column, last quarter)
Enterprise Value = 3.69b EUR (3.01b + Debt 977.4m - CCE 295.7m)
Interest Coverage Ratio = 5.64 (Ebit TTM 346.3m / Interest Expense TTM 61.4m)
EV/FCF = 8.52x (Enterprise Value 3.69b / FCF TTM 433.8m)
FCF Yield = 11.74% (FCF TTM 433.8m / Enterprise Value 3.69b)
FCF Margin = 11.25% (FCF TTM 433.8m / Revenue TTM 3.86b)
Net Margin = 4.54% (Net Income TTM 175.3m / Revenue TTM 3.86b)
Gross Margin = 64.12% ((Revenue TTM 3.86b - Cost of Revenue TTM 1.38b) / Revenue TTM)
Gross Margin QoQ = 56.01% (prev 67.48%)
Tobins Q-Ratio = 1.30 (Enterprise Value 3.69b / Total Assets 2.83b)
Interest Expense / Debt = 2.55% (Interest Expense 24.9m / Debt 977.4m)
Taxrate = 14.49% (10.4m / 71.5m)
NOPAT = 296.1m (EBIT 346.3m * (1 - 14.49%))
Current Ratio = 1.59 (Total Current Assets 1.19b / Total Current Liabilities 750.1m)
Debt / Equity = 0.95 (Debt 977.4m / totalStockholderEquity, last quarter 1.03b)
Debt / EBITDA = 1.29 (Net Debt 757.3m / EBITDA 586.0m)
Debt / FCF = 1.75 (Net Debt 757.3m / FCF TTM 433.8m)
Total Stockholder Equity = 921.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.26% (Net Income 175.3m / Total Assets 2.83b)
RoE = 19.02% (Net Income TTM 175.3m / Total Stockholder Equity 921.2m)
RoCE = 31.97% (EBIT 346.3m / Capital Employed (Equity 921.2m + L.T.Debt 162.1m))
RoIC = 23.50% (NOPAT 296.1m / Invested Capital 1.26b)
WACC = 8.52% (E(3.01b)/V(3.99b) * Re(10.58%) + D(977.4m)/V(3.99b) * Rd(2.55%) * (1-Tc(0.14)))
Discount Rate = 10.58% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 67.42 | Cagr: 12.69%
[DCF] Terminal Value 77.30% ; FCFF base≈374.9m ; Y1≈393.5m ; Y5≈460.0m
[DCF] Fair Price = 24.67 (EV 7.38b - Net Debt 757.3m = Equity 6.62b / Shares 268.2m; r=8.52% [WACC]; 5y FCF grow 5.37% → 3.0% )
EPS Correlation: 12.76 | EPS CAGR: -3.41% | SUE: -3.98 | # QB: -1
Revenue Correlation: 69.06 | Revenue CAGR: 13.60% | SUE: N/A | # QB: 0
EPS current Year (2026-12-31): EPS=0.41 | Chg30d=+1.93% | Revisions=+33% | GrowthEPS=-8.3% | GrowthRev=+4.3%
EPS next Year (2027-12-31): EPS=0.53 | Chg30d=+0.11% | Revisions=+20% | GrowthEPS=+28.7% | GrowthRev=+7.4%
[Analyst] Revisions Ratio: +33%