Is ZKH Group Stock a Good Investment?
ZKH Group Investment Advice | ZKH |
- Examine ZKH Group's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research ZKH Group's leadership team and their track record. Good management can help ZKH Group navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Industrial Machinery & Supplies & Components space and any emerging trends that could impact ZKH Group's business and its evolving consumer preferences.
- Compare ZKH Group's performance and market position to its competitors. Analyze how ZKH Group is positioned in terms of product offerings, innovation, and market share.
- Check if ZKH Group pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about ZKH Group's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in ZKH Group Limited stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if ZKH Group Limited is a good investment.
Sell | Buy |
Strong Sell
Market Performance | OK | Details | |
Volatility | Relatively risky | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine ZKH Group Stock
Researching ZKH Group's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 26.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.4. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. ZKH Group Limited recorded a loss per share of 0.36. The entity had not issued any dividends in recent years.
To determine if ZKH Group is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding ZKH Group's research are outlined below:
| ZKH Group Limited had very high historical volatility over the last 90 days | |
| ZKH Group Limited has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the last year's revenue of 8.72 B. Reported Net Loss for the year was (304.9 M) with profit before taxes, overhead, and interest of 1.32 B. | |
| ZKH Group generates negative cash flow from operations | |
| ZKH Group Limited has a frail financial position based on the latest SEC disclosures | |
| Latest headline from news.google.com: ZKH Group Limited Sees Significant Increase in Short Interest - MarketBeat |
ZKH Group Quarterly Accounts Payable |
|
Earnings surprises can significantly impact ZKH Group's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises ZKH Group's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-05-21 | 2024-03-31 | -0.44 | -0.27 | 0.17 | 38 | ||
2024-08-22 | 2024-06-30 | 0.03 | -0.21 | -0.24 | 800 | ||
2024-09-30 | 2024-09-30 | -0.02 | -0.4 | -0.38 | 1900 |
ZKH Group's market capitalization trends
The company currently falls under 'Small-Cap' category with a total capitalization of 597.75 M.Market Cap |
|
ZKH Group's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.04) | (0.04) | |
| Return On Capital Employed | (0.12) | (0.12) | |
| Return On Assets | (0.04) | (0.04) | |
| Return On Equity | (0.09) | (0.09) |
Determining ZKH Group's profitability involves analyzing its financial statements and using various financial metrics to determine if ZKH Group is a good buy. For example, gross profit margin measures ZKH Group's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of ZKH Group's profitability and make more informed investment decisions.
Basic technical analysis of ZKH Stock
As of the 25th of November, ZKH Group maintains the Mean Deviation of 2.73, downside deviation of 4.16, and Risk Adjusted Performance of 0.0139. Compared to fundamental indicators, the technical analysis model lets you check practical technical drivers of ZKH Group Limited, as well as the relationship between them.Understand ZKH Group's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing ZKH Group's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0139 | |||
| Market Risk Adjusted Performance | 0.1252 | |||
| Mean Deviation | 2.73 | |||
| Semi Deviation | 3.95 | |||
| Downside Deviation | 4.16 | |||
| Coefficient Of Variation | 12822.75 | |||
| Standard Deviation | 3.74 | |||
| Variance | 13.96 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.0009) | |||
| Total Risk Alpha | (0.57) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | 0.1152 | |||
| Maximum Drawdown | 20.13 | |||
| Value At Risk | (5.63) | |||
| Potential Upside | 5.07 | |||
| Downside Variance | 17.27 | |||
| Semi Variance | 15.57 | |||
| Expected Short fall | (2.68) | |||
| Skewness | (0.35) | |||
| Kurtosis | 2.08 |
| Risk Adjusted Performance | 0.0139 | |||
| Market Risk Adjusted Performance | 0.1252 | |||
| Mean Deviation | 2.73 | |||
| Semi Deviation | 3.95 | |||
| Downside Deviation | 4.16 | |||
| Coefficient Of Variation | 12822.75 | |||
| Standard Deviation | 3.74 | |||
| Variance | 13.96 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.0009) | |||
| Total Risk Alpha | (0.57) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | 0.1152 | |||
| Maximum Drawdown | 20.13 | |||
| Value At Risk | (5.63) | |||
| Potential Upside | 5.07 | |||
| Downside Variance | 17.27 | |||
| Semi Variance | 15.57 | |||
| Expected Short fall | (2.68) | |||
| Skewness | (0.35) | |||
| Kurtosis | 2.08 |
Consider ZKH Group's intraday indicators
ZKH Group intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of ZKH Group stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
ZKH Group Corporate Filings
6K | 22nd of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 19th of April 2024 Other Reports | ViewVerify | |
| 2nd of April 2024 Other Reports | ViewVerify | |
13A | 14th of February 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
ZKH Stock media impact
Far too much social signal, news, headlines, and media speculation about ZKH Group that are available to investors today. That information is available publicly through ZKH media outlets and privately through word of mouth or via ZKH internal channels. However, regardless of the origin, that massive amount of ZKH data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of ZKH Group news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of ZKH Group relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to ZKH Group's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive ZKH Group alpha.
ZKH Group Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards ZKH Group can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
ZKH Group Corporate Directors
| Shuangyi Chen | VP Director | Profile | |
| Yang Liu | Chief Director | Profile | |
| Junyu Li | VP Director | Profile | |
| Changxiang Yang | VP Director | Profile |
Already Invested in ZKH Group Limited?
The danger of trading ZKH Group Limited is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of ZKH Group is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than ZKH Group. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile ZKH Group Limited is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether ZKH Group Limited offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of ZKH Group's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Zkh Group Limited Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Zkh Group Limited Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in ZKH Group Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in industry. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ZKH Group. If investors know ZKH will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ZKH Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.36) | Revenue Per Share 82.533 | Quarterly Revenue Growth 0.085 | Return On Assets (0.04) | Return On Equity (0.18) |
The market value of ZKH Group Limited is measured differently than its book value, which is the value of ZKH that is recorded on the company's balance sheet. Investors also form their own opinion of ZKH Group's value that differs from its market value or its book value, called intrinsic value, which is ZKH Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ZKH Group's market value can be influenced by many factors that don't directly affect ZKH Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between ZKH Group's value and its price, as these two are different measures arrived at by various means. Investors typically determine if ZKH Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ZKH Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.