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ZKH GROUP LTD (ZKH) Stock Fundamental Analysis

NYSE:ZKH - US98877R1041 - ADR

2.99 USD
+0.02 (+0.67%)
Last: 8/22/2025, 5:52:35 PM
2.97 USD
-0.02 (-0.67%)
After Hours: 8/22/2025, 5:52:35 PM
Fundamental Rating

3

Overall ZKH gets a fundamental rating of 3 out of 10. We evaluated ZKH against 48 industry peers in the Trading Companies & Distributors industry. While ZKH seems to be doing ok healthwise, there are quite some concerns on its profitability. 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

ZKH had negative earnings in the past year.
ZKH had a positive operating cash flow in the past year.
ZKH had negative earnings in each of the past 5 years.
In multiple years ZKH reported negative operating cash flow during the last 5 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: 83.33% of the companies in the same industry are doing better.
The Return On Equity of ZKH (-8.65%) is worse than 81.25% 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

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.
The number of shares outstanding for ZKH has been increased compared to 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 1.17. 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 1.17 is on the low side compared to the rest of the industry. ZKH is outperformed by 77.08% 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.
ZKH has a better Debt to FCF ratio (2.45) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that ZKH is not too dependend on debt financing.
ZKH has a better Debt to Equity ratio (0.12) than 72.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 2.45
Altman-Z 1.17
ROIC/WACCN/A
WACC7.06%
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.
Looking at the Current ratio, with a value of 1.85, ZKH is in line with its industry, outperforming 43.75% of the companies in the same industry.
A Quick Ratio of 1.67 indicates that ZKH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.67, ZKH is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
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

ZKH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 85.10%, which is quite impressive.
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

The Earnings Per Share is expected to grow by 62.97% on average over the next years. This is a very strong growth
ZKH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.62% yearly.
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

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
A Price/Forward Earnings ratio of 18.64 indicates a rather expensive valuation of ZKH.
Based on the Price/Forward Earnings ratio, ZKH is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, ZKH is valued a bit cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 18.64
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

Based on the Price/Free Cash Flow ratio, ZKH is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 23.74
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

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

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ZKH GROUP LTD

NYSE:ZKH (8/22/2025, 5:52:35 PM)

After market: 2.97 -0.02 (-0.67%)

2.99

+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)08-22 2025-08-22
Inst Owners18.12%
Inst Owner Change-0.76%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap483.05M
Analysts80
Price Target4.32 (44.48%)
Short Float %0.05%
Short Ratio0.21
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)-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 18.64
P/S 0.4
P/FCF 23.74
P/OCF 15.14
P/B 1.12
P/tB 1.14
EV/EBITDA N/A
EPS(TTM)-0.21
EYN/A
EPS(NY)0.16
Fwd EY5.36%
FCF(TTM)0.13
FCFY4.21%
OCF(TTM)0.2
OCFY6.61%
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 1.17
F-Score6
WACC7.06%
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 Year101.88%
EBIT Next 3Y48.53%
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