Zalando SECHIX:ZALD 85 ROE % is -12.69% as of Mar. 2026. GuruFocus rates CHIX:ZALD with a GF Score™ of 85/100 and a GF Value™ of €29.35 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,097 Retail - Cyclical companies, Zalando SE ranks worse than 58.89% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zalando SE's annualized net income for the quarter that ended in Mar. 2026 was €-350 Mil. Zalando SE's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €2,762 Mil. Therefore, Zalando SE's annualized ROE % for the quarter that ended in Mar. 2026 was -12.69%.
The historical rank and industry rank for Zalando SE's ROE % or its related term are showing as below:
CHIX:ZALd'
s ROE % Range Over the Past 10 Years
Min: 0.76 Med: 7.42 Max: 11.79
Current: 4.25
During the past 13 years, Zalando SE's highest ROE % was 11.79%. The lowest was 0.76%. And the median was 7.42%.
CHIX:ZALd's ROE % is ranked worse than 58.89% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs CHIX:ZALd: 4.25
Zalando SE (CHIX:ZALd) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Zalando SE ROE % Related Terms
Zalando SE ROE % Historical Data
* Premium members only.
The historical data trend for Zalando SE's ROE % 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.
For the Internet Retail subindustry, Zalando SE's ROE %, along with its competitors' market caps and ROE % 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.
Zalando SE ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Zalando SE's ROE % distribution charts can be found below:
* The bar in red indicates where Zalando SE's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Zalando SE (CHIX:ZALD) has a ROE % of -12.69% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zalando SE and its competitors. Over the past decade, Zalando SE's ROE % has ranged from 0.76 to 11.79. According to the industry distribution chart, Zalando SE ranks #646 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 58.9%.
Is Zalando SE's ROE % too high?
Zalando SE's current ROE % is -12.69%. Over the past 10 years, this metric has ranged from a low of 0.76 to a high of 11.79. Based on the distribution chart, Zalando SE ranks #646 out of 1097 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Zalando SE has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zalando SE's ROE % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Zalando SE ranks #646 out of 1097 companies for ROE %. This places Zalando SE in the lower half of its industry. The industry median ROE % is 6.46. Historically, Zalando SE's own ROE % has ranged from 0.76 to 11.79 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zalando SE and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zalando SE's current ROE % is -12.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zalando SE stock overvalued right now?
Based on GuruFocus' analysis, Zalando SE (CHIX:ZALD) is currently considered Modestly Undervalued. The stock's GF Value™ is €29.35, compared to a current price of €23.93 — trading 18.5% below its estimated fair value. The current ROE % is -12.69%. Zalando SE's overall GF Score™ is 85/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Zalando SE (CHIX:ZALD), the current ROE % is -12.69% 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 Zalando SE (CHIX:ZALD) Overvalued in 2026?
Based on GuruFocus' analysis, Zalando SE stock appears to be undervalued.
The current stock price of €23.93 is trading 18.5% below its estimated GF Value™ of €29.35.
GuruFocus considers Zalando SE to be Modestly Undervalued.
Key valuation signals for CHIX:ZALD:
ROE %: -12.69%
GF Value™: €29.35 vs. price of €23.93 (18.5% below fair value)
No single metric tells the full story. See the CHIX:ZALD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zalando, founded in 2008, is Europe's biggest pure-play online fashion platform. Zalando is present in 25 European countries, and its major market is the DACH region, comprising Germany, Austria, and Switzerland. After the About You acquisition, it has 17 fulfillment centers, offers over 7,000 brands, and as of September 2025, had 62 million active users (more than 10% of the population in countries where the firm has a presence).
85GF Score
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