What is $ZTO?
ZTO Express, a Chinese shipping and logistics company. ZTO Express says it is one of the largest express delivery companies in the world, in terms of total parcel volume in 2015.
In 2015, the company had a total parcel volume of 2.95 billion. In comparison, UPS delivered an average of 18.3 million packages globally a day in 2015, which would translate to about 6.7 billion packages for the year, but not all would be considered express delivery.
$ZTO is currently growing its revenues at about 50% Y/Y; has no debt; and continues to expand its reach and contracts with companies like $JD and $BABA to keep up with the growing demand of China's booming e-Commerce sector.
I've been following and investing in this company for a little over a year now with a cost average of $13.94. I think it's slightly underpriced now, but I would consider it to be a long-term investment rather than a short, pump and dump.
So long as $BABA and $JD continue to perform, you can safely assume that $ZTO will grow at a similar rate. I like $ZTO because of the diversity it adds to my portfolio, and the GAAP transparency is much greater than those of said retailers.
PE: 25x
ROE: 16%
ROA: 12% (relatively high for the logistics industry)
ROC: 19%
Submitted May 21, 2018 at 08:31AM by notwiththatattidude https://ift.tt/2s0MXSP
