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ZKH GROUP LTD (ZKH) Stock Fundamental Analysis

NYSE:ZKH - New York Stock Exchange, Inc. - US98877R1041 - ADR - Currency: USD

3.51  -0.09 (-2.5%)

Fundamental Rating

2

Taking everything into account, ZKH scores 2 out of 10 in our fundamental rating. ZKH was compared to 48 industry peers in the Trading Companies & Distributors industry. ZKH has a bad profitability rating. Also its financial health evaluation is rather negative. ZKH is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

ZKH had negative earnings in the past year.
ZKH Yearly Net Income VS EBIT VS OCF VS FCFZKH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 0 -500M -1B -1.5B

1.2 Ratios

ZKH has a worse Return On Assets (-4.43%) than 87.50% of its industry peers.
The Return On Equity of ZKH (-9.69%) is worse than 85.42% of its industry peers.
Industry RankSector Rank
ROA -4.43%
ROE -9.69%
ROIC N/A
ROA(3y)-18.59%
ROA(5y)N/A
ROE(3y)-44.64%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ZKH Yearly ROA, ROE, ROICZKH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 -20 -40 -60

1.3 Margins

The Gross Margin of ZKH (17.23%) is worse than 89.58% of its industry peers.
In the last couple of years the Gross Margin of ZKH has grown nicely.
ZKH does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 17.23%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.69%
GM growth 5YN/A
ZKH Yearly Profit, Operating, Gross MarginsZKH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 0 10 -10

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3

2. Health

2.1 Basic Checks

ZKH does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ZKH has been increased compared to 1 year ago.
Compared to 1 year ago, ZKH has a worse debt to assets ratio.
ZKH Yearly Shares OutstandingZKH Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 50M 100M 150M
ZKH Yearly Total Debt VS Total AssetsZKH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

ZKH has an Altman-Z score of 1.27. This is a bad value and indicates that ZKH is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.27, ZKH is doing worse than 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that ZKH is not too dependend on debt financing.
The Debt to Equity ratio of ZKH (0.17) is better than 72.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF N/A
Altman-Z 1.27
ROIC/WACCN/A
WACC9.29%
ZKH Yearly LT Debt VS Equity VS FCFZKH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 0 1B -1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.81 indicates that ZKH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.81, ZKH perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
A Quick Ratio of 1.62 indicates that ZKH should not have too much problems paying its short term obligations.
ZKH has a better Quick ratio (1.62) than 70.83% of its industry peers.
Industry RankSector Rank
Current Ratio 1.81
Quick Ratio 1.62
ZKH Yearly Current Assets VS Current LiabilitesZKH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2B 4B 6B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 83.40% over the past year.
ZKH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.60%.
Measured over the past years, ZKH shows a very strong growth in Revenue. The Revenue has been growing by 23.00% on average per year.
EPS 1Y (TTM)83.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%91.16%
Revenue 1Y (TTM)-29.6%
Revenue growth 3Y23%
Revenue growth 5YN/A
Sales Q2Q%-63.67%

3.2 Future

The Earnings Per Share is expected to grow by 45.78% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.58% on average over the next years.
EPS Next Y51.91%
EPS Next 2Y56.82%
EPS Next 3Y45.78%
EPS Next 5YN/A
Revenue Next Year-0.89%
Revenue Next 2Y5.77%
Revenue Next 3Y7.58%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ZKH Yearly Revenue VS EstimatesZKH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B 10B
ZKH Yearly EPS VS EstimatesZKH Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 0 1 -1 2 -2

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ZKH. In the last year negative earnings were reported.
ZKH is valuated quite expensively with a Price/Forward Earnings ratio of 26.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZKH indicates a slightly more expensive valuation: ZKH is more expensive than 68.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. ZKH is around the same levels.
Industry RankSector Rank
PE N/A
Fwd PE 26.27
ZKH Price Earnings VS Forward Price EarningsZKH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ZKH Per share dataZKH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

ZKH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ZKH's earnings are expected to grow with 45.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.82%
EPS Next 3Y45.78%

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0

5. Dividend

5.1 Amount

No dividends for ZKH!.
Industry RankSector Rank
Dividend Yield N/A

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ZKH GROUP LTD

NYSE:ZKH (2/21/2025, 8:04:00 PM)

3.51

-0.09 (-2.5%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)11-22 2024-11-22/bmo
Earnings (Next)04-17 2025-04-17/bmo
Inst Owners14.21%
Inst Owner Change-88.41%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap567.06M
Analysts80
Price Target4.42 (25.93%)
Short Float %0.01%
Short Ratio0.33
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1336.63%
Min EPS beat(2)-1880.2%
Max EPS beat(2)-793.07%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-3.89%
Max Revenue beat(2)2.09%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-3.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-411.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.4%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 26.27
P/S 0.47
P/FCF N/A
P/OCF N/A
P/B 1.34
P/tB 1.36
EV/EBITDA N/A
EPS(TTM)-0.26
EYN/A
EPS(NY)0.13
Fwd EY3.81%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS7.54
BVpS2.63
TBVpS2.58
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.43%
ROE -9.69%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 17.23%
FCFM N/A
ROA(3y)-18.59%
ROA(5y)N/A
ROE(3y)-44.64%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.69%
GM growth 5YN/A
F-ScoreN/A
Asset Turnover1.31
Health
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.81
Quick Ratio 1.62
Altman-Z 1.27
F-ScoreN/A
WACC9.29%
ROIC/WACCN/A
Cap/Depr(3y)146.53%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.1%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)83.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%91.16%
EPS Next Y51.91%
EPS Next 2Y56.82%
EPS Next 3Y45.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-29.6%
Revenue growth 3Y23%
Revenue growth 5YN/A
Sales Q2Q%-63.67%
Revenue Next Year-0.89%
Revenue Next 2Y5.77%
Revenue Next 3Y7.58%
Revenue Next 5YN/A
EBIT growth 1Y58.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year48.2%
EBIT Next 3Y40.35%
EBIT Next 5YN/A
FCF growth 1Y-12.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.64%
OCF growth 3YN/A
OCF growth 5YN/A