ZKH Group Ltd

ZKH
About the company

ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People's Republic of China.

Country: Cayman IslandsPrice: $1.29Market Cap: $203.5M

Investment snapshot

18%positive consensus
Scored 1d ago

Positive

3

BUY / PASS

Neutral / negative

3 / 10

NEUTRAL / FAIL

Median fair value

—

No comparable estimates

Models with upside

0 / 17

Positive margin of safety

Strongest signal

9 of 12 pass — Buffett, Piotroski and Marks object

Key risk

No clean pass — all 13 investors flag at least one valuation criterion

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

MetricGraham

Defensive Value

Buffett

Quality Compounder

Lynch

GARP

Greenblatt

Magic Formula

Piotroski

F-Score

Dreman

Contrarian Value

Munger

Quality Focus

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Marks

Risk-Aware Value

Ackman

Activist Value

Templeton

Global Bargain Hunter

Sleep

Scale Economies Shared

Asness

Systematic Factors

Neff

Low-P/E Total Return

Schloss

Asset-Value Discipline

O'Shaughnessy

Systematic Factor Composite

VerdictFAILFAILFAILFAIL · Rank #2379 (Top 76.8%)PASSFAILPASSFAILFAILFAILFAILNEUTRALPASSFAILFAILNEUTRALNEUTRAL
Score
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Intrinsic Value (annual)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Margin of SafetyN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Financial Basis

Annual history · FY 2025

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025 · Market data at 2026-11-01

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2025

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2025

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025 · Qualitative assessment

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025 · Qualitative assessment

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025 · Market data at 2026-11-01

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025 · Price history 2025-01-01–2026-11-01

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025 · Qualitative assessment

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025 · Price history 2025-01-01–2026-11-01

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Annual history · FY 2025 · Price history 2025-01-01–2026-11-01

Latest source filing: 2026-04-24

Score computed: 2026-11-14

Where It Passes

  • Debt & Leverage75% pass✓ 12✗ 3▾

    9 of 12 pass — Buffett, Piotroski and Marks object

    LT Debt vs Net Current AssetsLT Debt $6.1M vs NCA $387.7M
    ✓GrahamLT Debt <= Net Current Assets
    Debt/Equity & Interest CoverageD/E: 0.02, IC: -56.0x
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Total Debt / Equity0.02
    ✓Lynch< 0.33
    Cash - Long-term Debt$141.2M
    ✓LynchPositive preferred
    LT Debt / Total Assets Change0.59% -> 0.65%
    ✗PiotroskiDecreased YoY
    Current Assets / Current Liabilities1.79
    ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)
    Total Debt / Shareholders' Equity0.02
    ✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x
    Debt Levels0.02
    ✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3
    Interest Coverage & Debt/EBITDAIC=-56.0x, D/EBITDA=N/A
    ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity0.02
    ✓Ackman<= 1.0
    Negative debt-to-equity (higher means less debt)-0.0153; #699/4210 (top 16.6%)
    ✓AsnessTop 30% of eligible cross-section

Where It Falls Short

  • Valuation0% pass✓ 9✗ 19▾

    No clean pass — all 13 investors flag at least one valuation criterion

    Price / 3-yr avg EPS
    ✗Graham<= 15x
    Price-to-Book Ratio0.5x
    ✓Graham<= 1.5x
    P/E x P/B
    ✗Graham<= 22.5
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    EBIT / Enterprise Value-48.7%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=-48.7%, ROC=-11.4%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / EPS
    ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
    Price / (CFO / Shares)163.2x
    ✗Dreman< 8x
    Price / Book Value per Share0.5x
    ✓Dreman< 1.2x✓Templeton< 1.5x✓SchlossP/B <= 0.80x (app cutoff)
    Valuation ReasonablenessOE Yield=-10.1%
    ✗MungerP/E < 25 or Owner Earnings Yield > 5%
    P/E or FCF YieldFCF Yield=-3.1%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    P/B or P/E vs. Historical AverageP/B=0.5x
    ✓MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Price / FCF per ShareN/A (negative FCF)
    ✗Ackman<= 25
    Price vs. Trailing Low100% of trailing low ($0.04)
    ✓Templeton<= 120% of trailing low (certified split-adjusted live window)
    Net income / market capitalization-9.81%; #4173/6340 (top 65.8%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Positive book equity / market capitalization+2.0657; #662/6449 (top 10.3%)
    ✓AsnessTop 30% of eligible cross-section
    Price / Diluted EPS
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / Tangible Book Value per Share0.50x
    ✓SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change
    ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Revenue / market capitalization+6.3122; #449/5247 (top 8.6%)
    ✓OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization-3.11%; #2841/4519 (top 62.9%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date-57.70%; #5347/6202 (top 86.2%)
    ✗OshaughnessyTop 10% of eligible cross-section
  • Growth0% pass✓ 1✗ 12▾

    No clean pass — all 8 investors flag at least one growth criterion

    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthInv: 11.7% vs Rev: 7.0%
    ✗LynchInventory growth < Revenue growth
    EPS Growth Direction
    ✗DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    Positive Net Income Frequency0/5 years positive
    ✗MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth2.8%
    ✗Ackman>= 5%
    Positive EPS Growth Frequency
    ✗AckmanPositive EPS growth in >= 3 of last 5 years
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Revenue growth vs. gross and operating margin trendgross margin 16.7% -> 16.4%, operating margin -4.6% -> -2.4%
    ✓SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR
    ✗SleepCAGR > 7%
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
  • Cash Flow10% pass✓ 2✗ 10▾

    9 of 10 flag ZKH's cash flow — Buffett, Lynch, Dreman +6 more

    Free Cash Flow Proxy$-20.0M
    ✗BuffettPositive and growing
    FCF Positive and Growing$-6.3M
    ✗LynchPositive and growing
    Operating Cash Flow$1.3M
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=0.13%, ROA=-2.14%
    ✓PiotroskiCFO/Assets > ROA
    Price / (CFO / Shares)163.2x
    ✗Dreman< 8x
    P/E or FCF YieldFCF Yield=-3.1%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    FCF Positive1/5 years FCF positive
    ✗MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap-3.1%
    ✗Ackman>= 4%
    Price / FCF per ShareN/A (negative FCF)
    ✗Ackman<= 25
    Positive Operating Cash Flow frequency2/5 years positive
    ✗SleepPositive OCF in >= 70% of available years
    Operating Cash Flow - Capital Expenditures$-6.3M
    ✗Neff> $0 (app proxy for a strong fundamental case)
    (Operating cash flow - capex) / market capitalization-3.11%; #2841/4519 (top 62.9%)
    ✗OshaughnessyTop 10% of eligible cross-section
  • Profitability13% pass✓ 6✗ 29▾

    14 of 16 flag ZKH's profitability — Graham, Buffett, Lynch +11 more

    Positive EPS (10 years)0/6 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Net Income Positive (10+ years)0/6 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)-7.6%
    ✗Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)-2.4% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy$-20.0M
    ✗BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    ROE-4.8%
    ✗Lynch> 15%
    EBIT / Enterprise Value-48.7%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=-48.7%, ROC=-11.4%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Net Income / Total Assets-2.14%
    ✗PiotroskiROA > 0
    ROA Change YoY-4.05% -> -2.14% (delta: +1.91%)
    ✓PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=0.13%, ROA=-2.14%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY17.2% -> 16.4%
    ✗PiotroskiImproved YoY
    Pre-Tax Income / Revenue-1.5%
    ✗Dreman>= 8%
    Net Income / Shareholders' Equity-4.8%
    ✗Dreman> 12%
    Margin of SafetyP/B=0.5x
    ✓PabraiP/B < 1.5 or P/E < 15
    Return on Equity-7.6% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency0/5 years positive
    ✗MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue-2.4%
    ✗Ackman>= 15%
    Net Income / Shareholders Equity-4.8%
    ✗Ackman>= 15%
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend-4.6% (2023) -> -2.4% (2025)
    ✓TempletonNon-negative operating-margin trend over 3 years
    Revenue growth vs. gross and operating margin trendgross margin 16.7% -> 16.4%, operating margin -4.6% -> -2.4%
    ✓SleepRevenue rising; gross margin flat or falling; operating margin holding
    Net income / market capitalization-9.81%; #4173/6340 (top 65.8%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Gross profit / total assets+22.60%; #1882/3702 (top 50.8%)
    ✗AsnessTop 30% of eligible cross-section
    Net income / positive book equity-4.75%; #3197/5226 (top 61.2%)
    ✗AsnessTop 30% of eligible cross-section
    Negative 5-year standard deviation of ROA-0.0328; #2019/5884 (top 34.3%)
    ✗AsnessTop 30% of eligible cross-section
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
    Positive Diluted-EPS Years0/5 years positive
    ✗Schloss>= 70% positive over 5-10 observed years (app rule)
  • Efficiency13% pass✓ 2✗ 9▾

    7 of 8 flag ZKH's efficiency — Graham, Buffett, Greenblatt +4 more

    Current Ratio1.79
    ✗Graham>= 2.0
    ROIC (3-5 yr avg)-12.0%
    ✗Buffett> 10%
    ROIC - WACC-22.0%
    ✗BuffettPositive (WACC = 10%)
    EBIT / (NWC + Net Fixed Assets)-11.4%
    ✗Greenblatt> 25%
    Current Ratio Change YoY1.85 -> 1.79
    ✗PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY1.33x -> 1.38x
    ✓PiotroskiImproved YoY
    Current Assets / Current Liabilities1.79
    ✓Dreman> 1.5
    Return on Invested Capital-5.6%
    ✗Munger> 15%
    ROIC (high and growing)FY2023: ROIC=-8.3%; FY2024: ROIC=-8.5%; FY2025: ROIC=-5.6%
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROICN/A (non-positive net income)
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)0/3 years above 12% (latest -5.6%)
    ✗SleepROIC > 12% in a majority of years
  • Verdicts21% pass✓ 3✗ 11▾

    Split decision: 10 FAIL · 3 PASS · 3 NEUTRAL

    Overall verdict
    ✗GrahamFAIL (3/9)✗BuffettFAIL (1/9)✗LynchFAIL (2/7)✗GreenblattRank #2379✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✓MungerPASS (2/4)✗PabraiFAIL (1/3)✗AkreFAIL (2/6)✗MarksFAIL (1/5)✗AckmanFAIL (2/9)•TempletonNEUTRAL (5/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1305/2370 (Top 55.1%))✗NeffFAIL (1/6)•SchlossNEUTRAL (4/7)•OshaughnessyNEUTRAL (Not ranked)

Business & financials

Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Retail
SIC Sector: Building Materials Retail
Size: Micro Cap($203.5M)
Revenue: $1.3B+7.0% YoY
Net Income: $20.0M+45.6% YoY

Financial Snapshot

Operating Margin-2.4%
Return on Equity-4.8%
Debt / Equity0.02
Current Ratio1.79
EPS (Diluted)$-0.00
Buybacks (1y)$5.9M
Buybacks (2y)$11.4M
Shares Retired0.7% / 1.3% 2y

Similar Companies

COSTCOSTCO WHOLESALE CORP /NEW
$490.2B
HDHOME DEPOT, INC.
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TJXTJX COMPANIES INC /DE/
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FASTFASTENAL CO
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Shareholder Return

Fiscal 2025

Retired 0.7% of shares last year, 1.3% over two.

Buybacks
$5.9M
Dividends
—

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

MetricFY 2025
Sources
  • 20-F · 2026-04-24
FY 2024
Sources
  • 20-F · 2025-04-17
FY 2023
Sources
  • 20-F · 2024-04-19
FY 2022
Sources
  • 20-F · 2024-04-19
FY 2021
Sources
  • 20-F · 2024-04-19
Market Cap$203.5Mcurrent$20.1Best.$96.2Best.$19.9Best.--
Revenue$1.3B↑7%$1.2B↓2%$1.2B↑3%$1.2B↓1%$1.2B
Operating Income-$30.5M↑34%-$46.4M↑17%-$56.1M↑43%-$98.5M↑43%-$174.3M
Net Income-$20.0M↑46%-$36.7M↑14%-$42.8M↑59%-$105.7M↑40%-$176.2M
EPS (Diluted)$-0.00↑58%$-0.01↑92%$-0.09↑34%$-0.13↑28%$-0.19
Gross Margin16.4%↓5%17.2%↑4%16.7%↑5%15.8%↑17%13.6%
Operating Margin-2.4%↑39%-3.9%↑15%-4.6%↑45%-8.2%↑43%-14.5%
ROE-4.8%↑45%-8.7%↑9%-9.5%↓152%18.1%↓55%40.6%
Total Debt$6.4M↑18%$5.5M↓93%$82.3M↑129%$35.9M--
Shareholders' Equity$420.4M↓1%$424.6M↓6%$451.9M↑177%-$584.6M↓35%-$434.1M
Current Ratio1.79↓3%1.85↑7%1.73↓4%1.80—
Debt / Equity0.02↑19%0.01↓93%0.18↑397%-0.06—
Operating Cash Flow$1.3M↓96%$31.4M↑139%-$79.9M↓10%-$72.4M↑67%-$217.0M
Free Cash Flow-$6.3M↓131%$20.5M↑124%-$87.0M↓12%-$77.7M↑68%-$239.8M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Retail

ZKH vs Peers — Financial Grading

Revenue$1.3BBottom 25%
Net Income$20.0MBottom 25%
ROE-4.8%Bottom 25%
D/E0.02Top 25%
Op. Margin-2.4%Bottom 25%
Curr. Ratio1.79Top 25%
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
COSTCO WHOLESALE CORP /NEWCOST$490.2B$1106.21$275.2B$8.1B27.8%0.203.8%1.032/95/96/71/3F-Score 63/11
HOME DEPOT, INC.HD$347.9B$348.69$164.7B$14.2B110.5%4.0012.7%1.063/95/93/71/3F-Score 43/11
TJX COMPANIES INC /DE/TJX$148.4B$134.37$60.4B$5.5B53.9%0.28—1.143/96/97/71/3F-Score 74/11
FASTENAL COFAST$63.3B$55.19$8.2B$1.3B31.9%0.0320.2%4.854/97/95/71/3F-Score 75/11
AUTOZONE INCAZO$52.5B$3259.70$18.9B$2.5B-73.2%-2.6119.1%0.883/96/92/71/3F-Score 64/11
KROGER COKR$41.8B$70.80$147.6B$1.0B17.1%2.681.3%0.803/94/93/70/3F-Score 73/11
WILLIAMS SONOMA INCWSM$29.9B$254.05$7.8B$1.1B52.3%—18.1%1.393/96/93/71/3F-Score 53/11
CASEYS GENERAL STORES INCCASY$26.3B$712.08$17.6B$714.4M18.1%0.62—1.013/93/92/70/3F-Score 93/11