ZHIHU INC - ADR (ZH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZH - US98955N2071 - ADR
3.755 USD
+0.07 (+2.04%)
We assign a fundamental rating of 3 out of 10 to ZH. ZH was compared to 70 industry peers in the Interactive Media & Services industry. While ZH seems to be doing ok healthwise, there are quite some concerns on its profitability. ZH has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year ZH was profitable.
- In the past 5 years ZH always reported negative net income.
- ZH had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 2.40%, ZH is doing good in the industry, outperforming 65.71% of the companies in the same industry.
- ZH has a Return On Equity of 3.33%. This is in the better half of the industry: ZH outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 3.33% | ||
| ROIC | N/A |
ROA(3y)-12.02%
ROA(5y)-16.92%
ROE(3y)-16.82%
ROE(5y)-23.19%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- ZH's Profit Margin of 4.38% is fine compared to the rest of the industry. ZH outperforms 67.14% of its industry peers.
- The Gross Margin of ZH (62.83%) is comparable to the rest of the industry.
- ZH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 4.38% | ||
| GM | 62.83% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.89%
GM growth 5Y5.41%
2. Health
2.1 Basic Checks
- ZH does not have a ROIC to compare to the WACC, probably because it is not profitable.
- ZH has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ZH has been reduced compared to 5 years ago.
- ZH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- ZH has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of ZH (0.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.54%
2.3 Liquidity
- ZH has a Current Ratio of 3.48. This indicates that ZH is financially healthy and has no problem in meeting its short term obligations.
- ZH has a Current ratio of 3.48. This is in the better half of the industry: ZH outperforms 78.57% of its industry peers.
- A Quick Ratio of 3.48 indicates that ZH has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.48, ZH is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
- The earnings per share for ZH have decreased strongly by -43.35% in the last year.
- ZH shows a strong growth in Revenue. In the last year, the Revenue has grown by 118.85%.
EPS 1Y (TTM)-43.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%12.69%
Revenue 1Y (TTM)118.85%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-24.56%
3.2 Future
- Based on estimates for the next years, ZH will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.28% on average per year.
- The Revenue is expected to decrease by -1.72% on average over the next years.
EPS Next Y-825.35%
EPS Next 2Y-179.63%
EPS Next 3Y-100.83%
EPS Next 5Y14.28%
Revenue Next Year20.64%
Revenue Next 2Y19.18%
Revenue Next 3Y6.38%
Revenue Next 5Y-1.72%
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 7.82, which indicates a rather cheap valuation of ZH.
- ZH's Price/Earnings ratio is rather cheap when compared to the industry. ZH is cheaper than 87.14% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. ZH is valued rather cheaply when compared to this.
- ZH is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A cheap valuation may be justified as ZH's earnings are expected to decrease with -100.83% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-179.63%
EPS Next 3Y-100.83%
5. Dividend
5.1 Amount
- ZH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ZHIHU INC - ADR / ZH FAQ
What is the ChartMill fundamental rating of ZHIHU INC - ADR (ZH) stock?
ChartMill assigns a fundamental rating of 3 / 10 to ZH.
What is the valuation status for ZH stock?
ChartMill assigns a valuation rating of 2 / 10 to ZHIHU INC - ADR (ZH). This can be considered as Overvalued.
What is the profitability of ZH stock?
ZHIHU INC - ADR (ZH) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for ZH stock?
The Price/Earnings (PE) ratio for ZHIHU INC - ADR (ZH) is 7.82 and the Price/Book (PB) ratio is 0.57.
What is the expected EPS growth for ZHIHU INC - ADR (ZH) stock?
The Earnings per Share (EPS) of ZHIHU INC - ADR (ZH) is expected to decline by -825.35% in the next year.