Ermenegildo Zegna N.V. (ZGN) stock analysis
Close on Nov 12, 2026Market cap $5.74BP/E 32.0Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed10 of 30 checks passed
Ermenegildo Zegna passes 10 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 2/6
- Past performance
- 4/6
- Financial health
- 4/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 10.3%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 21.7% of shareholders' equity, under the 40% we consider low.
EPS growing 10%+ a year
Diluted EPS grew 21.9% a year over the last three fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 149% of total debt.
What to watch
Return on equity under 15%
Return on equity was 10.3% over the last twelve months and averaged 4.1% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew 8.7% a year over the last three fiscal years, short of the 10% we look for.
Interest not well covered
Operating income covers interest expense 2.8 times; we look for at least 5.
Growing slower than the industry
Revenue grew -1.5% over the last twelve months; the Apparel and Other Finished Products Made from Fabrics and Similar Materials median is 2.3%.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth2/6
Revenue growing under 10% a year
Revenue grew 8.7% a year over the last three fiscal years, short of the 10% we look for.
EPS growing 10%+ a year
Diluted EPS grew 21.9% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -1.5% over the last twelve months; the Apparel and Other Finished Products Made from Fabrics and Similar Materials median is 2.3%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin improving
Gross margin was 67.5% over the last twelve months, against 66.6% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 10.3% over the last twelve months and averaged 4.1% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 10.3%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Ermenegildo Zegna's return on equity of 10.3% is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 8.3%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 5.1% over the last twelve months, against a 5-year average of 1.7%.
Net margin above the industry
Ermenegildo Zegna's net margin of 5.1% is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 2.8%.
Financial health4/6
Low debt
Debt is 21.7% of shareholders' equity, under the 40% we consider low.
Debt falling against equity
Debt to equity fell from 110% five years ago to 21.7%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 149% of total debt.
Interest not well covered
Operating income covers interest expense 2.8 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.47 times current liabilities.
Bankruptcy risk (Altman Z)
Needs market value, working capital and retained earnings.
Dividend0/6
No dividend
Ermenegildo Zegna has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for Ermenegildo Zegna. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $15.45M
- Value traded per 1% price move
- $9.19M
Downside
Medium risk
- Typical loss in a bad month
- 16.9%
- Volatility (annualized)
- 42%
- Sharpe ratio, 1 year
- 0.86
- Beta to the S&P 500 (5Y)
- 0.83
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -1.5% | +8.7% | +13.6% | – | |
| Gross profit | -0.2% | +11.7% | – | – | |
| Operating income | -16.4% | -1.9% | – | – | |
| Net income | +27.9% | +24.2% | – | – | |
| EPS, diluted | +26.7% | +21.9% | – | – | |
| Free cash flow | +42.5% | +37.9% | +42.6% | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 10.1% | |
| Return on assets | – | – | 3.5% | |
| Current ratio | – | 2.31 | 1.59 | |
| Debt to equity | – | 1.10 | 0.24 | |
| Net debt to EBITDA | – | 2.42× | 0.07× | |
| Interest coverage | – | -0.5× | 2.8× | |
| Inventory turnover | – | – | 1.2× | |
| Capex to revenue | – | 2.7% | 4.2% | |
| Diluted shares | – | 201M | 261M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Ermenegildo Zegna generated €1.32B from operations and spent €933.96M on capital expenditure, dividends and share buybacks. 39% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 5.1% | 0.68× | 2.91× | 10.1% |
| FY2024 | 4.0% | 0.70× | 3.19× | 8.8% |
| FY2023 | 6.4% | 0.73× | 3.42× | 16.0% |
| FY2022 | 3.4% | 0.61× | 3.82× | 8.0% |
| FY2021 | -10.5% | 0.53× | 4.05× | -22.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero€98.58M
- Cash generatingOperating cash flow above zero€335.56M
- Return on assets improvedROA up on the prior year2.8% → 3.5%
- Earnings backed by cashOperating cash flow above net income€335.56M vs €98.58M
- Less leverageLong-term debt to assets fell6.9% → 5.7%
- Better liquidityCurrent ratio rose1.41 → 1.59
- No dilutionShare count did not rise254M → 261M
- Gross margin improvedGross margin up on the prior year66.60% → 67.51%
- More efficientAsset turnover rose0.70 → 0.68
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