Ermenegildo Zegna N.V. — Earnings Quality Grade F
ZGN · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 43 days, change -3 days YoY
AR growth -8.7% vs revenue growth -1.5%
Revenue -1.5%, CFFO 20.2%. Cash follows revenue
Expense Quality
Inventory -2.7% vs COGS -4.2%. Normal
CapEx growth -18.0% vs revenue -1.5%. Normal
SG&A/Gross Profit = 89.2%, exceeds 70%
Gross margin 67.5%, change +0.9pp. Stable
Cash Flow Quality
CFFO/NI = 3.40. Profits backed by cash
FCF $0.2B, FCF/NI = 2.36
Accruals ratio = -8.4%. Low accruals
Cash $0.3B covers only 30% of debt $1.0B
Balance Sheet Health
Goodwill+Intangibles $0.6B = 54% of equity. Over 50%
Debt/EBITDA = 2.2x. Healthy
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -10% YoY. Normal
Manipulation Score
M-Score = -2.95 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25