Ermenegildo Zegna N.V. (ZGN) AI Stock Analysis

Ermenegildo Zegna N.V. is an apparel manufacturer founded in 1910 and headquartered in Trivero, Italy. The company designs, manufactures, and distributes upscale clothing, footwear, leather goods, and accessories under the Zegna and Thom Browne brands. Its product lineup includes luxury leisurewear, formal attire such as suits and tuxedos, fragrances, shoes, bags, and belts. Under the Thom Browne label, it also offers luxury womenswear and children's apparel, alongside licensed items like eyewear, watches, and jewelry. Ermenegildo Zegna serves global customers across Europe, the Middle East, Africa, North America, Latin America, and the Asia Pacific through retail stores and online channels.

Revenue grew at a 5-year CAGR of 12.5% from FY2020 to FY2025. Annual revenue expanded from $1.29B in FY2021 to $1.90B in FY2023, before moderating to $1.95B in FY2024 and declining 5.4% to $1.84B in FY2025. Gross margin reached 66.6% in FY2024 before falling to 55.6% in FY2025, while net income was $94.7M in FY2025 with an operating margin of 8.5%. Over the trailing twelve months, revenue reached $1.98B with an operating margin of 7.2% and EPS of $0.35. For the latest quarter ending June 30, 2026, quarterly revenue grew 6.4% year-over-year, but quarterly earnings fell 49.2%.

As of June 30, 2026, Ermenegildo Zegna held $294.4M in cash and short-term investments against $1.15B in total debt, resulting in net debt of $857.1M. Shareholders' equity was $1.04B, giving a debt-to-equity ratio of 1.11 and a current ratio of 1.47. In FY2025, the business generated operating cash flow of $322.3M and free cash flow of $242.2M. Capital expenditures used $80.1M, dividends paid totaled $29.3M, and share issuance was $107.2M.

At a market cap of $3.47B and an enterprise value of $4.32B, Ermenegildo Zegna trades at a trailing P/E of 36.9x and a forward P/E of 22.6x. Both multiples are higher than the median of its US-listed Consumer Cyclical peers, which stand at 18.0x and 14.1x, respectively. Its EV-to-EBITDA ratio of 9.0x sits below the peer median of 11.1x. Over the past year, ZGN stock gained 30.5%, outperforming the SPY return of 16.8%, though its 5-year return of 37.9% trails the SPY return of 83.0%.

Ermenegildo Zegna pays an annual forward dividend of $0.14 per share, translating to a dividend yield of 1.06%. The payout ratio is 40.0%, and dividends have been paid for 5 consecutive years. Its last ex-dividend date occurred on July 6, 2026.

Wall Street sentiment includes 7 Strong Buy, 2 Buy, 3 Hold, and 1 Sell recommendations. The mean price target is $14.54, which represents 12.6% upside from the last close of $12.91 on October 16, 2026. For FY2026 ending December 31, 2026, consensus estimates project revenue of $2.05B and EPS of $0.39. The company beat EPS estimates in 1 of the last 4 quarters. The next earnings date is October 22, 2026.

This page is an AI-written research summary of Ermenegildo Zegna N.V. (ZGN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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