ZKH GROUP LTD (ZKH)
US98877R1041 - ADR
Taking everything into account, ZKH scores 3 out of 10 in our fundamental rating. ZKH was compared to 51 industry peers in the Trading Companies & Distributors industry. ZKH has a bad profitability rating. Also its financial health evaluation is rather negative. ZKH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ZKH had negative earnings in the past year.
In the past year ZKH has reported a negative cash flow from operations.
1.2 Ratios
ZKH's Return On Assets of -22.58% is on the low side compared to the rest of the industry. ZKH is outperformed by 94.12% of its industry peers.
Looking at the Return On Equity, with a value of -51.93%, ZKH is doing worse than 96.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.58% | ||
| ROE | -51.93% | ||
| 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
1.3 Margins
ZKH's Gross Margin of 16.64% is on the low side compared to the rest of the industry. ZKH is outperformed by 90.20% of its industry peers.
ZKH's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for ZKH so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 16.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.69%
GM growth 5YN/A
2. Health
2.1 Basic Checks
ZKH does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ZKH has more shares outstanding
Compared to 1 year ago, ZKH has a worse debt to assets ratio.
2.2 Solvency
ZKH has an Altman-Z score of 1.06. This is a bad value and indicates that ZKH is not financially healthy and even has some risk of bankruptcy.
ZKH's Altman-Z score of 1.06 is on the low side compared to the rest of the industry. ZKH is outperformed by 82.35% of its industry peers.
ZKH has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
ZKH's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. ZKH outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACCN/A
WACC7.05%
2.3 Liquidity
A Current Ratio of 1.73 indicates that ZKH should not have too much problems paying its short term obligations.
ZKH's Current ratio of 1.73 is in line compared to the rest of the industry. ZKH outperforms 45.10% of its industry peers.
A Quick Ratio of 1.56 indicates that ZKH should not have too much problems paying its short term obligations.
The Quick ratio of ZKH (1.56) is better than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
ZKH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.54%, which is quite impressive.
Looking at the last year, ZKH shows a small growth in Revenue. The Revenue has grown by 4.88% in the last year.
The Revenue has been growing by 23.00% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)22.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%42.22%
Revenue 1Y (TTM)4.88%
Revenue growth 3Y23%
Revenue growth 5YN/A
Sales Q2Q%-4.04%
3.2 Future
Based on estimates for the next years, ZKH will show a very strong growth in Earnings Per Share. The EPS will grow by 78.69% on average per year.
Based on estimates for the next years, ZKH will show a very strong growth in Revenue. The Revenue will grow by 21.25% on average per year.
EPS Next Y137.8%
EPS Next 2Y109.86%
EPS Next 3Y78.69%
EPS Next 5YN/A
Revenue Next Year15.97%
Revenue Next 2Y22.3%
Revenue Next 3Y21.25%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ZKH reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
ZKH is valuated cheaply with a Price/Forward Earnings ratio of 0.74.
Based on the Price/Forward Earnings ratio, ZKH is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ZKH to the average of the S&P500 Index (20.16), we can say ZKH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 0.74 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as ZKH's earnings are expected to grow with 78.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y109.86%
EPS Next 3Y78.69%
5. Dividend
5.1 Amount
No dividends for ZKH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZKH GROUP LTD
NYSE:ZKH (7/1/2024, 3:22:48 PM)
After market: 3.75 -0.03 (-0.79%)3.78
-0.12 (-3.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap608.84M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 0.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.58% | ||
| ROE | -51.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 16.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)22.54%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y137.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.88%
Revenue growth 3Y23%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y