ZTO Express (Cayman)MEX:ZTO N 99 Return-on-Tangible-Equity is 16.11% as of Mar. 2026, which is 10% below its 10-year median of 17.82. GuruFocus rates MEX:ZTO N with a GF Score™ of 99/100 and a GF Value™ of MXN537.38. The stock has 4 warning signs investors should review. Among 977 Transportation companies, ZTO Express (Cayman) ranks better than 74.21% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. ZTO Express (Cayman)'s annualized net income for the quarter that ended in Mar. 2026 was MXN22,170 Mil. ZTO Express (Cayman)'s average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN137,602 Mil. Therefore, ZTO Express (Cayman)'s annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 16.11%.
The historical rank and industry rank for ZTO Express (Cayman)'s Return-on-Tangible-Equity or its related term are showing as below:
MEX:ZTO N'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.18 Med: 17.82 Max: 23.58
Current: 17.4
During the past 12 years, ZTO Express (Cayman)'s highest Return-on-Tangible-Equity was 23.58%. The lowest was 12.18%. And the median was 17.82%.
MEX:ZTO N's Return-on-Tangible-Equity is ranked better than 74.21% of 977
companies
in the Transportation industry
Industry Median: 9.02
vs MEX:ZTO N: 17.40
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
ZTO Express (Cayman) Return-on-Tangible-Equity Related Terms
ZTO Express (Cayman) Return-on-Tangible-Equity Historical Data
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The historical data trend for ZTO Express (Cayman)'s Return-on-Tangible-Equity can be seen below:
* 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.
MEX:ZTO N vs EXPD, CHRW, FDXF: Return-on-Tangible-Equity Comparison
For the Integrated Freight & Logistics subindustry, ZTO Express (Cayman)'s Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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) Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, ZTO Express (Cayman)'s Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ZTO Express (Cayman)'s Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 16.11% mean?
ZTO Express (Cayman) (MEX:ZTO N) has a Return-on-Tangible-Equity of 16.11% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ZTO Express (Cayman) and its competitors. This is 10% below median its historical median of 17.82. Over the past decade, ZTO Express (Cayman)'s Return-on-Tangible-Equity has ranged from 12.18 to 23.58. According to the industry distribution chart, ZTO Express (Cayman) ranks #252 out of 977 companies in the Transportation industry, placing it in the top 25.8%.
Is ZTO Express (Cayman)'s Return-on-Tangible-Equity too high?
ZTO Express (Cayman)'s current Return-on-Tangible-Equity of 16.11% is 10% below median its 10-year median of 17.82. Over the past 10 years, this metric has ranged from a low of 12.18 to a high of 23.58. The Transportation industry median Return-on-Tangible-Equity is 9.02. ZTO Express (Cayman)'s value of 16.11% is 78.6% above this industry median. Based on the distribution chart, ZTO Express (Cayman) ranks #252 out of 977 companies in the Transportation industry, which is above the industry midpoint. Overall, ZTO Express (Cayman) has a GF Score™ of 99/100, reflecting its overall financial health beyond just this single metric.
How does ZTO Express (Cayman)'s Return-on-Tangible-Equity compare to EXPD and CHRW?
According to the Transportation industry distribution chart, ZTO Express (Cayman) ranks #252 out of 977 companies for Return-on-Tangible-Equity. This puts ZTO Express (Cayman) in the upper half of its industry. The industry median Return-on-Tangible-Equity is 9.02. ZTO Express (Cayman)'s value of 16.11% is 78.6% above this benchmark. Historically, ZTO Express (Cayman)'s own Return-on-Tangible-Equity has ranged from 12.18 to 23.58 over the past decade. While the company's 10-year median is 17.82 vs. the industry median of 9.02, ZTO Express (Cayman) has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 9.02, based on 977 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ZTO Express (Cayman)'s current Return-on-Tangible-Equity of 16.11% is 78.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ZTO Express (Cayman) and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 9.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZTO Express (Cayman)'s current Return-on-Tangible-Equity is 16.11%, which is 10% below median its own 10-year median of 17.82. 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?
ZTO Express (Cayman) (MEX:ZTO N) has a current Return-on-Tangible-Equity of 16.11%. The stock's GF Value™ is MXN537.38, compared to a current price of MXN426.00 — trading 20.7% below its estimated fair value. The current Return-on-Tangible-Equity is 16.11%, which is 10% below median its 10-year median of 17.82 and 78.6% above the Transportation industry median of 9.02. ZTO Express (Cayman)'s overall GF Score™ is 99/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For ZTO Express (Cayman) (MEX:ZTO N), the current Return-on-Tangible-Equity is 16.11% 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) (MEX:ZTO N) Overvalued in 2026?
Based on GuruFocus' analysis, ZTO Express (Cayman) stock appears to be undervalued.
The current stock price of MXN426.00 is trading 20.7% below its estimated GF Value™ of MXN537.38.
Key valuation signals for MEX:ZTO N:
Return-on-Tangible-Equity: 16.11% (10% below median its 10-year median of 17.82)
GF Value™: MXN537.38 vs. price of MXN426.00 (20.7% below fair value)
Industry Position: 78.6% above the Transportation median (#252 of 977)
No single metric tells the full story. See the MEX:ZTO N 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.
99GF Score
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