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ZKH GROUP LTD (ZKH) Stock Fundamental Analysis

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

2.95  -0.02 (-0.67%)

Fundamental Rating

3

Overall ZKH gets a fundamental rating of 3 out of 10. We evaluated ZKH against 49 industry peers in the Trading Companies & Distributors industry. ZKH scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ZKH has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year ZKH has reported negative net income.
ZKH had a positive operating cash flow in the past year.
In the past 5 years ZKH always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: ZKH reported negative operating cash flow in multiple years.
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 2024 0 -500M -1B -1.5B

1.2 Ratios

With a Return On Assets value of -4.05%, ZKH is not doing good in the industry: 87.76% of the companies in the same industry are doing better.
ZKH has a Return On Equity of -8.65%. This is amonst the worse of the industry: ZKH underperforms 85.71% of its industry peers.
Industry RankSector Rank
ROA -4.05%
ROE -8.65%
ROIC N/A
ROA(3y)-11.79%
ROA(5y)-14.07%
ROE(3y)-26.23%
ROE(5y)-32.12%
ROIC(3y)N/A
ROIC(5y)N/A
ZKH Yearly ROA, ROE, ROICZKH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 -20 -40 -60

1.3 Margins

ZKH has a worse Gross Margin (17.24%) than 87.76% of its industry peers.
In the last couple of years the Gross Margin of ZKH has grown nicely.
The Profit Margin and Operating Margin are not available for ZKH so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 17.24%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.27%
GM growth 5YN/A
ZKH Yearly Profit, Operating, Gross MarginsZKH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 0 10 -10

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4

2. Health

2.1 Basic Checks

ZKH does not have a ROIC to compare to the WACC, probably because it is not profitable.
ZKH has more shares outstanding than it did 1 year ago.
ZKH has a better debt/assets ratio than last year.
ZKH Yearly Shares OutstandingZKH Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 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 2024 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 1.16, we must say that ZKH is in the distress zone and has some risk of bankruptcy.
ZKH has a worse Altman-Z score (1.16) than 81.63% of its industry peers.
The Debt to FCF ratio of ZKH is 2.45, which is a good value as it means it would take ZKH, 2.45 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.45, ZKH is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that ZKH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, ZKH is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 2.45
Altman-Z 1.16
ROIC/WACCN/A
WACC8.27%
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 2024 0 1B -1B 2B 3B

2.3 Liquidity

ZKH has a Current Ratio of 1.85. This is a normal value and indicates that ZKH is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.85, ZKH perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
ZKH has a Quick Ratio of 1.67. This is a normal value and indicates that ZKH is financially healthy and should not expect problems in meeting its short term obligations.
ZKH has a better Quick ratio (1.67) than 73.47% of its industry peers.
Industry RankSector Rank
Current Ratio 1.85
Quick Ratio 1.67
ZKH Yearly Current Assets VS Current LiabilitesZKH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 2B 4B 6B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 85.10% over the past year.
ZKH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -30.18%.
The Revenue has been growing slightly by 4.60% on average over the past years.
EPS 1Y (TTM)85.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-14.81%
Revenue 1Y (TTM)-30.18%
Revenue growth 3Y4.6%
Revenue growth 5YN/A
Sales Q2Q%4.03%

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 63.22% on average per year.
Based on estimates for the next years, ZKH will show a quite strong growth in Revenue. The Revenue will grow by 11.78% on average per year.
EPS Next Y122.55%
EPS Next 2Y79.09%
EPS Next 3Y63.22%
EPS Next 5YN/A
Revenue Next Year11.91%
Revenue Next 2Y11.57%
Revenue Next 3Y11.78%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ZKH Yearly Revenue VS EstimatesZKH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B 10B
ZKH Yearly EPS VS EstimatesZKH Yearly EPS VS EstimatesYearly EPS VS Estimates 2023 2024 2025 2026 2027 0 1 -1 2 -2

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ZKH. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 17.30, which indicates a rather expensive current valuation of ZKH.
ZKH's Price/Forward Earnings ratio is in line with the industry average.
ZKH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.17.
Industry RankSector Rank
PE N/A
Fwd PE 17.3
ZKH Price Earnings VS Forward Price EarningsZKH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30

4.2 Price Multiples

67.35% of the companies in the same industry are more expensive than ZKH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 23.46
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.
A more expensive valuation may be justified as ZKH's earnings are expected to grow with 63.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y79.09%
EPS Next 3Y63.22%

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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 (6/4/2025, 8:04:00 PM)

2.95

-0.02 (-0.67%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)05-20 2025-05-20/bmo
Earnings (Next)08-20 2025-08-20
Inst Owners14.21%
Inst Owner Change-0.08%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap476.59M
Analysts80
Price Target4.42 (49.83%)
Short Float %0.01%
Short Ratio0.25
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)-0.94%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)2.09%
Revenue beat(4)1
Avg Revenue beat(4)-2.93%
Min Revenue beat(4)-5.94%
Max Revenue beat(4)2.09%
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-76.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 17.3
P/S 0.39
P/FCF 23.46
P/OCF 14.96
P/B 1.11
P/tB 1.13
EV/EBITDA N/A
EPS(TTM)-0.21
EYN/A
EPS(NY)0.17
Fwd EY5.78%
FCF(TTM)0.13
FCFY4.26%
OCF(TTM)0.2
OCFY6.69%
SpS7.54
BVpS2.67
TBVpS2.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.05%
ROE -8.65%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 17.24%
FCFM 1.67%
ROA(3y)-11.79%
ROA(5y)-14.07%
ROE(3y)-26.23%
ROE(5y)-32.12%
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 3Y8.27%
GM growth 5YN/A
F-Score6
Asset Turnover1.33
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 2.45
Debt/EBITDA N/A
Cap/Depr 151.61%
Cap/Sales 0.95%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.85
Quick Ratio 1.67
Altman-Z 1.16
F-Score6
WACC8.27%
ROIC/WACCN/A
Cap/Depr(3y)97.7%
Cap/Depr(5y)152%
Cap/Sales(3y)0.73%
Cap/Sales(5y)1.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)85.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-14.81%
EPS Next Y122.55%
EPS Next 2Y79.09%
EPS Next 3Y63.22%
EPS Next 5YN/A
Revenue 1Y (TTM)-30.18%
Revenue growth 3Y4.6%
Revenue growth 5YN/A
Sales Q2Q%4.03%
Revenue Next Year11.91%
Revenue Next 2Y11.57%
Revenue Next 3Y11.78%
Revenue Next 5YN/A
EBIT growth 1Y49.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year91.84%
EBIT Next 3Y46.77%
EBIT Next 5YN/A
FCF growth 1Y123.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y140.33%
OCF growth 3YN/A
OCF growth 5YN/A