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ZKH GROUP LTD (ZKH) Stock Fundamental Analysis

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

3.1  -0.06 (-1.77%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ZKH. ZKH was compared to 48 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 is not valued too expensively and it also shows a decent growth rate.


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

ZKH has a worse Return On Assets (-4.05%) than 83.33% of its industry peers.
With a Return On Equity value of -8.65%, ZKH is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
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

The Gross Margin of ZKH (17.24%) is worse than 87.50% 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

ZKH has an Altman-Z score of 1.19. This is a bad value and indicates that ZKH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ZKH (1.19) is worse than 81.25% 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 72.92% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that ZKH is not too dependend on debt financing.
ZKH has a Debt to Equity ratio of 0.12. This is in the better half of the industry: ZKH outperforms 70.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 2.45
Altman-Z 1.19
ROIC/WACCN/A
WACC7.6%
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.
The Current ratio of ZKH (1.85) is comparable to the rest of the 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 Quick ratio of 1.67. This is in the better half of the industry: ZKH outperforms 70.83% 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.
The Revenue for ZKH has decreased by -30.18% in the past year. This is quite bad
ZKH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.60% yearly.
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 62.97% 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 11.62% on average per year.
EPS Next Y113.93%
EPS Next 2Y77.04%
EPS Next 3Y62.97%
EPS Next 5YN/A
Revenue Next Year11.68%
Revenue Next 2Y11.13%
Revenue Next 3Y11.62%
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

ZKH reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 19.33, ZKH is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZKH is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ZKH to the average of the S&P500 Index (36.44), we can say ZKH is valued slightly cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 19.33
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

Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZKH indicates a somewhat cheap valuation: ZKH is cheaper than 64.58% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 24.62
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

The 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 62.97% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y77.04%
EPS Next 3Y62.97%

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0

5. Dividend

5.1 Amount

ZKH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ZKH GROUP LTD

NYSE:ZKH (7/18/2025, 8:21:55 PM)

3.1

-0.06 (-1.77%)

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 Owners18.12%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap500.82M
Analysts80
Price Target4.32 (39.35%)
Short Float %0.02%
Short Ratio0.58
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)-2.31%
PT rev (3m)-2.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-38.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 19.33
P/S 0.41
P/FCF 24.62
P/OCF 15.69
P/B 1.16
P/tB 1.18
EV/EBITDA N/A
EPS(TTM)-0.21
EYN/A
EPS(NY)0.16
Fwd EY5.17%
FCF(TTM)0.13
FCFY4.06%
OCF(TTM)0.2
OCFY6.37%
SpS7.56
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 1.19
F-Score6
WACC7.6%
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 Y113.93%
EPS Next 2Y77.04%
EPS Next 3Y62.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-30.18%
Revenue growth 3Y4.6%
Revenue growth 5YN/A
Sales Q2Q%4.03%
Revenue Next Year11.68%
Revenue Next 2Y11.13%
Revenue Next 3Y11.62%
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