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Zalando
(XETRA:ZAL)
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Rating:59Neutral
Price Target:
€23.00
▼(-0.95% Downside)
Action:Reiterated
Date:08/08/26
The score is supported primarily by improving financial stability and strong free cash flow generation. It is weighed down by weak technical positioning (below key moving averages with muted momentum) and an expensive valuation (P/E ~62.8) alongside thin net profitability (~0.9%), which increases sensitivity to any margin or demand setbacks.
Positive Factors
Strong free cash flow generation
Zalando’s substantial operating and free cash flow indicates meaningful cash-generation capacity beyond reported earnings. Continued improvement in free cash flow can support technology investment, logistics infrastructure, working-capital needs, and strategic flexibility over the coming quarters.
Negative Factors
Thin net profitability
A net margin below 1% leaves limited protection against changes in demand, fulfillment costs, returns, or promotional intensity. Even modest operational pressure could therefore materially reduce earnings, making durable bottom-line improvement dependent on continued cost discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Zalando’s substantial operating and free cash flow indicates meaningful cash-generation capacity beyond reported earnings. Continued improvement in free cash flow can support technology investment, logistics infrastructure, working-capital needs, and strategic flexibility over the coming quarters.
Read all positive factors
Zalando (ZAL) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€6.41B
Dividend YieldN/A
Average Volume (3M)1.00M
Price to Earnings (P/E)70.5
Beta (1Y)0.94
Revenue Growth23.48%
EPS Growth-63.82%
CountryDE
Employees17,417
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.37
Shares Outstanding250,250,460
10 Day Avg. Volume1,070,162
30 Day Avg. Volume1,003,267
Financial Highlights & Ratios
PEG Ratio-2.12
Price to Book (P/B)2.34
Price to Sales (P/S)0.53
P/FCF Ratio6.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€36.19Price Target Upside55.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.43
Revenue Forecast (FY)€13.84B
Zalando Business Overview & Revenue Model
Company Description
Zalando SE functions as a leading e-commerce platform focused on fashion and lifestyle merchandise. It offers an extensive range of apparel, footwear, accessories, and beauty products, all provided with complimentary delivery and a straightforward...
How the Company Makes Money
Zalando primarily makes money through two main business models: (1) a direct-to-consumer retail model and (2) a platform-services model for brands and retailers.
1) Direct-to-consumer retail (wholesale/retail model)
- Merchandise sales: Zalando b...
Zalando Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
70
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.51B | 12.35B | 10.57B | 10.14B | 10.34B | 10.35B |
| Gross Profit | 5.39B | 4.61B | 4.30B | 3.68B | 4.06B | 4.33B |
| EBITDA | 1.00B | 812.80M | 811.30M | 572.50M | 411.90M | 660.20M |
| Net Income | 94.70M | 215.10M | 251.10M | 83.00M | 16.80M | 234.50M |
Balance Sheet | ||||||
| Total Assets | 8.80B | 9.69B | 7.98B | 8.11B | 7.63B | 6.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.46B | 1.88B | 2.69B | 2.62B | 2.04B | 2.29B |
| Total Debt | 1.37B | 1.44B | 1.73B | 1.85B | 1.72B | 1.57B |
| Total Liabilities | 6.23B | 6.87B | 5.32B | 5.73B | 5.43B | 4.68B |
| Stockholders Equity | 2.57B | 2.83B | 2.67B | 2.37B | 2.20B | 2.22B |
Cash Flow | ||||||
| Free Cash Flow | 841.00M | 1.03B | 447.30M | 686.30M | 108.30M | 283.30M |
| Operating Cash Flow | 1.02B | 1.13B | 654.10M | 949.50M | 459.90M | 616.20M |
| Investing Cash Flow | -732.80M | -1.08B | -269.80M | -320.70M | -476.20M | -335.90M |
| Financing Cash Flow | -1.08B | -756.40M | -325.60M | -123.60M | -245.90M | -639.80M |
Zalando Technical Analysis
Positive
23.22
Price Trends
23.37
Positive
24.76
Positive
23.29
Positive
Market Momentum
1.00
Negative
69.48
Neutral
84.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ZAL, the sentiment is Positive. The current price of 23.22 is below the 20-day moving average (MA) of 24.34, below the 50-day MA of 23.37, and below the 200-day MA of 23.29, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 69.48 is Neutral, neither overbought nor oversold. The STOCH value of 84.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ZAL.
Zalando Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | €2.60B | 12.23 | 14.07% | 0.10% | -4.64% | -1.35% | |
59 Neutral | €6.41B | 70.51 | 3.47% | ― | 23.48% | -63.82% | |
56 Neutral | €105.09M | -4.06 | -17.93% | ― | -5.24% | 67.43% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | €88.33M | 47.79 | 1.47% | ― | 26.48% | ― | |
44 Neutral | €3.69B | -8.34 | -23.66% | 2.46% | -20.70% | -366.24% | |
41 Neutral | €34.55M | -1.14 | -68.17% | ― | -12.21% | 62.09% |
* General Sector Average
DE:ZAL
Zalando
26.09
1.48
6.01%
DE:PUM
PUMA SE NPV
25.12
4.52
21.94%
DE:BOSS
Hugo Boss
38.61
-1.79
-4.42%
DE:GFG
Global Fashion Group
0.46
0.15
48.39%
DE:BIKE
Bike24 Holding AG
2.00
-1.44
-41.86%
DE:MRX
Mister Spex SE
1.02
-0.45
-30.48%
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.