Kanzhun Ltd Sponsored (BZ) AI Stock Analysis

Compare

134 Followers

Top Page

Kanzhun Ltd Sponsored

(NASDAQ:BZ)

Rating:82Outperform

Price Target:

$20.00

▲( 11.73% Upside)

Kanzhun Ltd receives a strong overall score of 82, driven primarily by its excellent financial performance, indicating robust growth and profitability. The positive sentiment from the earnings call also supports the score, despite moderate technical momentum and high valuation. The company's cautious approach to AI monetization and external tariff war risks slightly temper the outlook.

Positive Factors

Competitive Advantage

Kanzhun has developed a strong competitive moat through its innovative direct recruitment model, supported by extensive enterprise and MAU bases, as well as recruitment facilitation technology.

Financial Performance

Kanzhun's online recruitment service revenue is forecast to increase, with an adjusted operating margin expected to improve from 31% to 41%, driven by enhanced operating leverage and efficiency.

Market Position

Kanzhun is the largest online recruitment platform in China in terms of both revenue and MAUs in 2024, according to CIC and analyst estimates.

Negative Factors

Market Competition

The rapid growth of the online recruitment market, with a projected CAGR of 10% over the next few years, could intensify competition, potentially impacting Kanzhun's market share.

Kanzhun Ltd Sponsored (BZ) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$8.45B

Dividend YieldN/A

Average Volume (3M)3.65M

Price to Earnings (P/E)37.0

Beta (1Y)1.42

Revenue Growth18.00%

EPS Growth39.90%

CountryUS

Employees5,688

SectorIndustrials

Sector Strength90

IndustryStaffing & Employment Services

Share Statistics

EPS (TTM)0.24

Shares Outstanding389,240,700

10 Day Avg. Volume2,540,541

30 Day Avg. Volume3,651,941

Financial Highlights & Ratios

PEG Ratio10.42

Price to Book (P/B)2.25

Price to Sales (P/S)0.00

P/FCF Ratio11.91

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$19.60

Price Target Upside9.50% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

Kanzhun Ltd Sponsored Business Overview & Revenue Model

Company DescriptionKanzhun Ltd Sponsored (BZ) operates in the online recruitment and human resources sector, primarily through its flagship platform, Boss Zhipin. The company focuses on connecting job seekers with potential employers using an innovative mobile app that facilitates direct communication between candidates and company representatives, enhancing the recruitment process's efficiency and effectiveness.

How the Company Makes MoneyKanzhun Ltd generates revenue through its online recruitment platform by offering premium services to employers and recruiters. These services include enhanced job listing visibility, access to a larger pool of candidates, advanced search and filtering options, and data analytics for better recruitment decisions. The company may also monetize through advertising and partnerships with other businesses within the human resources and recruitment ecosystem. Additionally, Kanzhun Ltd could potentially explore new revenue streams such as subscription models or value-added services for job seekers.

Kanzhun Ltd Sponsored Financial Statement Overview

Summary

Kanzhun Ltd displays a strong financial performance across all verticals. The company benefits from rapid revenue growth and improving profitability margins. Its balance sheet is characterized by low leverage and high equity, suggesting financial stability. Cash flow metrics highlight effective cash management and strong cash generation. The overall financial health is robust, with limited risks observed.

Income Statement

Very Positive

Kanzhun Ltd has demonstrated strong revenue growth with a 19.48% increase from the previous year. The company has also improved its profitability, with a gross profit margin of 83.12% and a net profit margin of 20.62% for the TTM. The EBIT margin has improved to 14.27%, indicating better operational efficiency. However, the EBITDA margin remains stable at 14.26%, suggesting some room for improvement in non-operational expenses.

Balance Sheet

Very Positive

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.02, indicating minimal financial leverage. The equity ratio is high at 77.79%, reflecting strong shareholder equity relative to total assets. Return on equity is impressive at 10.02%, showcasing effective use of equity to generate profits. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Positive

Kanzhun Ltd exhibits healthy cash flow dynamics with a free cash flow growth rate of 22.29% over the previous year. The operating cash flow to net income ratio is 2.40, demonstrating efficient conversion of earnings to cash. The free cash flow to net income ratio is 1.75, indicating strong cash generation relative to net income. However, there is potential risk from fluctuating capital expenditures.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
7.11B	5.95B	4.51B	4.26B	1.94B	998.72M
	Gross Profit
5.91B	4.89B	3.76B	3.70B	1.70B	860.91M
	EBIT
1.01B	580.97M	-129.52M	-1.04B	-944.90M	-511.92M
	EBITDA
1.01B	839.72M	157.88M	-846.88M	-836.86M	-464.09M
	Net Income Common Stockholders
1.47B	1.10B	107.25M	-1.07B	-937.79M	-492.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.46B	12.91B	13.21B	12.23B	4.53B	1.55B
	Total Assets
15.00B	17.94B	14.83B	13.64B	5.08B	1.88B
	Total Debt
275.42M	280.09M	295.03M	310.90M	135.93M	94.88M
	Net Debt
-5.98B	-2.19B	-9.46B	-11.03B	-3.86B	-312.48M
	Total Liabilities
3.24B	4.51B	3.19B	2.97B	7.38B	3.54B
	Stockholders Equity
11.77B	13.43B	11.64B	10.67B	-2.30B	-1.66B
Cash Flow		Free Cash Flow
2.56B	2.09B	662.92M	1.38B	257.70M	-169.70M
	Operating Cash Flow
3.51B	3.05B	1.00B	1.64B	395.91M	-105.66M
	Investing Cash Flow
-1.78B	-9.94B	-2.82B	-601.86M	467.31M	-1.22B
	Financing Cash Flow
-1.38B	-417.02M	-669.23M	6.43B	2.88B	993.48M

Kanzhun Ltd Sponsored Technical Analysis

Technical Analysis Sentiment

Positive

Last Price17.90

Price Trends

50DMA

17.03

Positive

100DMA

16.11

Positive

200DMA

15.19

Positive

Market Momentum

MACD

0.55

Negative

RSI

54.02

Neutral

STOCH

67.62

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BZ, the sentiment is Positive. The current price of 17.9 is above the 20-day moving average (MA) of 16.69, above the 50-day MA of 17.03, and above the 200-day MA of 15.19, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 67.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BZ.

Kanzhun Ltd Sponsored Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BZ	82 Outperform	$8.45B	36.95	11.20%	―	18.00%	39.90%
UPWK	82 Outperform	$2.17B	9.72	49.80%	―	7.21%	396.32%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
RHI	62 Neutral	$4.83B	23.63	14.49%	4.78%	-7.81%	-40.22%
NSP	53 Neutral	$2.67B	42.94	48.65%	3.58%	1.90%	-60.33%
KELYA	52 Neutral	$436.09M	11.43	-1.60%	2.53%	-3.49%	-140.04%
ZIP	46 Neutral	$498.89M	225.24	-2897.28%	―	-20.95%	-152.29%

* Industrials Sector Average

Performance Comparison

Kanzhun Ltd Sponsored

17.25

-4.19

-19.54%

NSP

Insperity

66.79

-33.78

-33.59%

KELYA

Kelly Services

11.85

-9.96

-45.67%

RHI

Robert Half

46.11

-19.05

-29.24%

UPWK

Upwork

16.22

5.12

46.13%

ZIP

ZipRecruiter

5.59

-4.12

-42.43%

Kanzhun Ltd Sponsored Earnings Call Summary

Earnings Call Date:May 22, 2025

(Q1-2025)

% Change Since: 0.00%|

Next Earnings Date:Aug 21, 2025

Earnings Call Sentiment Positive

The earnings call presented a largely positive outlook with strong revenue and net income growth, improved margins, and significant advancements in AI technology. User growth and engagement metrics were robust, and the company maintained a strong cash position. However, concerns persist regarding the tariff war and the cautious approach to AI monetization, which may limit potential revenue growth. Overall, the positive aspects significantly outweigh the concerns.

Q1-2025 Updates

Positive Updates

Strong Year-on-Year Revenue Growth

GAAP revenue for the first quarter of 2025 reached RMB 1.92 billion, reflecting a 13% year-on-year increase.

Significant Net Income Increase

Net income increased by 112% year-on-year, reaching RMB 510 million in the first quarter.

User Growth and Engagement

The company added over 15 million verified new users, with monthly active users reaching 57.56 million, up 24% year-on-year.

Improvement in Operating Margin

Adjusted operating margin improved to 36%, up 13 percentage points year-on-year.

AI Technology Advancements

AI-powered tools like interview robots and recruitment assistants have shown promising results, improving efficiency and user experience.

Robust Cash Position

Net cash provided by operating activities reached RMB 1.0 billion, and the company's cash position totaled RMB 14.8 billion.

Negative Updates

Ongoing Tariff War Concerns

While the impact of the tariff war has not intensified, it remains a concern for the company and its effects on recruitment in export-related industries.

Limited AI Monetization

Despite advancements in AI technology, the company remains cautious in monetizing these features, potentially slowing revenue growth from AI innovations.

Company Guidance

In the first quarter of 2025, Kanzhun Limited demonstrated strong financial performance, achieving a GAAP revenue of RMB 1.92 billion, reflecting a 13% year-on-year increase. The company's net income surged by 112% year-on-year to RMB 510 million. Adjusted operating income was reported at RMB 690 million, with an adjusted operating margin of 36%, up 13 percentage points from the previous year. The company added over 15 million verified new users, with average verified monthly active users reaching 57.56 million, a 24% increase year-on-year. User growth was driven by a 45% increase in new blue-collar users, contributing to over 39% of revenue, and a 23% rise in revenue from Tier 3 and lower-tier cities. Moreover, the company saw a 12% year-on-year increase in paid enterprise customers, totaling 6.38 million. AI integration played a crucial role, with AI-powered tools enhancing recruitment efficiency and user engagement, contributing to a 25% increase in recruitment results for enterprise users utilizing AI agents. The company's strong cash position of RMB 14.8 billion supports its growth initiatives and potential shareholder returns. Looking ahead, Kanzhun Limited anticipates second-quarter revenues between RMB 2.05 billion and RMB 2.08 billion, representing a year-on-year growth of 7.0% to 8.5%.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.