Ermenegildo Zegna N.V. cash flow to debt ratio of 32.98% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Ermenegildo Zegna N.V.'s free cash flow has increased 57.67% from $153.60M last year to $242.19M, signaling increasing performance

Ermenegildo Zegna N.V.'s debt to equity ratio is 0.95, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Ermenegildo Zegna N.V.'s debt has decreased relative to shareholder equity from 1.13 last year to 0.95 today, signaling strengthened financials

Ermenegildo Zegna N.V. has a net debt to EBITDA ratio of 1.93x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Ermenegildo Zegna N.V.'s interest coverage ratio of 3.79 indicates that earnings with good margin can cover interest payments on company debt

Ermenegildo Zegna N.V.'s profit margin has increased (29.83%) in the last year from 3.96% to 5.14%, signaling increasing performance

Ermenegildo Zegna N.V.'s short-term assets of $1.19G exceed its short-term liabilities of $750.07M

Ermenegildo Zegna N.V.'s return on assets of 3.46% is lower than the 5.00% threshold, indicating inefficient asset utilization

Ermenegildo Zegna N.V.'s return on equity of 10.25%, is lower than 15.00%, indicating bad performance

Ermenegildo Zegna N.V.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Ermenegildo Zegna N.V. had positive net income in 4.00 out of 5 years, indicating stable and consistent earnings

Ermenegildo Zegna N.V. has positive free cash flow, indicating the company generates cash after capital expenditures

Ermenegildo Zegna N.V. has a free cash flow yield of 6.93%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Ermenegildo Zegna N.V.'s yearly earnings has increased 22.84% since last year from $77.08M to $94.69M, signaling increasing performance

Ermenegildo Zegna N.V.'s yearly revenue has decreased -5.41% since last year from $1.95G to $1.84G, signaling decreasing performance

ROIC 5.25% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Ermenegildo Zegna N.V.'s 3-year revenue CAGR of 7.24% is positive, indicating growing revenue over the past 3 years

Ermenegildo Zegna N.V. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance

Ermenegildo Zegna N.V. had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity

Ermenegildo Zegna N.V. is undervalued relative to its fair value price of 13.21 based on Discounted Cash Flow model

Ermenegildo Zegna N.V. has an earnings yield of 2.85%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Ermenegildo Zegna N.V. is overvalued relative to its fair value price of 7.40 based on EBITDA multiple model

Ermenegildo Zegna N.V. has an EV/EBITDA ratio of 10.85x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Ermenegildo Zegna N.V. is overvalued relative to its fair value price of 11.64 based on Earnings Fair Value model

Ermenegildo Zegna N.V. has a PEG-ratio over 1 which is considered overvalued

Ermenegildo Zegna N.V. has a price-to-book ratio of 3.14x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Ermenegildo Zegna N.V. has a price-to-sales ratio of 1.81x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue