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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
ZTO Express (Cayman)'s Interest Coverage for the quarter that ended in Mar. 2026 was 49.61.
ZTO Express (Cayman)'s debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.41.
As of today, ZTO Express (Cayman)'s Altman Z-Score is 3.73.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
ZTO Express (Cayman) has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
ZTO Express (Cayman) Financial Strength Related Terms
ZTO vs CHRW, EXPD, FDXF: Financial Strength Comparison
For the Integrated Freight & Logistics subindustry, ZTO Express (Cayman)'s Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ZTO Express (Cayman) Financial Strength vs Transportation Industry
For the Transportation industry and Industrials sector, ZTO Express (Cayman)'s Financial Strength distribution charts can be found below:
* The bar in red indicates where ZTO Express (Cayman)'s Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
ZTO Express (Cayman) has a Z-score of 3.73, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 3.73 is strong.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ZTO Express (Cayman) (ZTO) has a Financial Strength of 8 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on ZTO Express (Cayman) and its competitors. This is 11% below median its historical median of 9.00. Over the past decade, ZTO Express (Cayman)'s Financial Strength has ranged from 8.00 to 10.00.
Is ZTO Express (Cayman)'s Financial Strength too high?
ZTO Express (Cayman)'s current Financial Strength of 8 is 11% below median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 10.00. Overall, ZTO Express (Cayman) has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ZTO Express (Cayman)'s Financial Strength compare to CHRW and EXPD?
ZTO Express (Cayman)'s Financial Strength of 8 can be compared against companies in the Transportation industry. Historically, ZTO Express (Cayman)'s own Financial Strength has ranged from 8.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Transportation company?
A good Financial Strength depends on the Transportation industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on ZTO Express (Cayman) and its competitors. ZTO Express (Cayman)'s current Financial Strength is 8, which is 11% below median its own 10-year median of 9.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZTO Express (Cayman) stock overvalued right now?
Based on GuruFocus' analysis, ZTO Express (Cayman) (ZTO) is currently considered Modestly Undervalued. The stock's GF Value™ is $29.12, compared to a current price of $21.51 — trading 26.1% below its estimated fair value. The current Financial Strength is 8, which is 11% below median its 10-year median of 9.00. ZTO Express (Cayman)'s overall GF Score™ is 94/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For ZTO Express (Cayman) (ZTO), the current Financial Strength is 8 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ZTO Express (Cayman) (ZTO) Overvalued in 2026?
Based on GuruFocus' analysis, ZTO Express (Cayman) stock appears to be undervalued.
The current stock price of $21.51 is trading 26.1% below its estimated GF Value™ of $29.12.
GuruFocus considers ZTO Express (Cayman) to be Modestly Undervalued.
Key valuation signals for ZTO:
Financial Strength: 8 (11% below median its 10-year median of 9.00)
GF Value™: $29.12 vs. price of $21.51 (26.1% below fair value)
No single metric tells the full story. See the ZTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ZTO Express is China's largest express delivery company by parcel volume, with a volume share of 19.4% in 2024. It operates a network partner model where it provides line-haul transportation and sorting services, while its local network partners provide first-mile pickup and last-mile delivery services under the ZTO brand name. Headquartered in Shanghai, the company was founded in 2002 by Meisong Lai, who remains chair, CEO, and its major shareholder with 78% voting rights as of March 31, 2025. ZTO's strategic shareholder is leading China e-commerce company Alibaba Group with around an 8.9% interest.
94GF Score
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