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Shengfeng Development Limited Class A (SFWL)
NASDAQ:SFWL
US Market

Shengfeng Development Limited Class A (SFWL) AI Stock Analysis

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Shengfeng Development Limited Class A

(NASDAQ:SFWL)

70Outperform
Shengfeng Development Limited scores well due to its strong financial performance driven by revenue growth and stable margins. The stock's technical indicators suggest cautious optimism in the short term, while its valuation offers potential upside given the low P/E ratio. However, negative free cash flow and the absence of dividend yield could be points of concern. The overall score reflects a balanced view of these factors.

Shengfeng Development Limited Class A (SFWL) vs. S&P 500 (SPY)

Shengfeng Development Limited Class A Business Overview & Revenue Model

Company DescriptionShengfeng Development Limited Class A (SFWL) is a company engaged in various sectors including logistics and supply chain management. The company provides comprehensive logistics services, encompassing transportation, warehousing, and distribution. SFWL aims to offer efficient and reliable logistics solutions to businesses, enhancing their supply chain operations.
How the Company Makes MoneyShengfeng Development Limited Class A generates revenue through its logistics and supply chain management services. The company's primary revenue streams include fees from transportation services, warehousing, and distribution services. By optimizing the logistics process for its clients, SFWL earns income through long-term contracts and partnerships with businesses across various industries. These partnerships are crucial as they provide steady revenue and opportunities for expanding service offerings. Additionally, the company may benefit from economies of scale, allowing it to offer competitive pricing while maintaining profitability.

Shengfeng Development Limited Class A Financial Statement Overview

Summary
Shengfeng Development Limited Class A shows strong revenue growth and improving profitability with a balanced leverage approach. However, the negative free cash flow highlights liquidity challenges that need attention for long-term stability.
Income Statement
82
Very Positive
Shengfeng Development Limited Class A has shown consistent revenue growth over the years, with a notable increase from $370.3 million in 2022 to $404.1 million in 2023, representing a revenue growth rate of 9.12%. Gross profit margin improved to 11.51% in 2023, and the net profit margin increased to 2.55%, indicating enhanced operational efficiency. The EBIT margin stood at 3.44%, and the EBITDA margin was 7.32%, reflecting stable earnings before interest, taxes, depreciation, and amortization. Overall, the company demonstrates strong revenue growth and improving profitability.
Balance Sheet
75
Positive
The debt-to-equity ratio decreased to 0.57 in 2023, indicating a conservative approach to leveraging. The return on equity improved to 9.54%, showing effective use of equity to generate profits. The equity ratio of 40.61% suggests a stable financial structure with a moderate level of equity financing. Despite the improvements, maintaining a balanced leverage ratio remains crucial for future stability.
Cash Flow
68
Positive
The operating cash flow to net income ratio improved to 1.18 in 2023, illustrating a positive cash flow generation relative to profits. However, free cash flow remains negative at -$16.6 million, indicating ongoing capital expenditures outpacing cash inflows, which could pose liquidity challenges. The company needs to focus on enhancing free cash flow to ensure sustainable financial health.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
404.12M370.32M346.70M287.46M232.61M
Gross Profit
46.51M41.53M41.34M35.98M28.83M
EBIT
13.91M9.85M8.59M6.20M2.54M
EBITDA
29.60M28.31M24.84M22.05M15.36M
Net Income Common Stockholders
10.29M7.79M6.90M6.09M1.91M
Balance SheetCash, Cash Equivalents and Short-Term Investments
26.73M21.29M18.64M27.32M18.41M
Total Assets
265.84M245.26M244.21M232.18M177.10M
Total Debt
61.81M76.84M75.57M76.84M57.78M
Net Debt
35.09M55.56M56.92M49.52M39.37M
Total Liabilities
153.53M150.17M148.31M147.80M104.40M
Stockholders Equity
107.95M91.22M91.59M82.62M71.17M
Cash FlowFree Cash Flow
-16.60M-318.00K-9.09M-5.61M-4.50M
Operating Cash Flow
12.11M6.93M16.59M2.33M-722.00K
Investing Cash Flow
-18.82M-6.71M-23.87M-7.82M-17.01M
Financing Cash Flow
13.19M6.05M-2.13M13.14M15.77M

Shengfeng Development Limited Class A Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.00
Price Trends
50DMA
0.98
Positive
100DMA
1.01
Negative
200DMA
1.14
Negative
Market Momentum
MACD
<0.01
Negative
RSI
54.47
Neutral
STOCH
91.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFWL, the sentiment is Neutral. The current price of 1 is above the 20-day moving average (MA) of 0.95, above the 50-day MA of 0.98, and below the 200-day MA of 1.14, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.47 is Neutral, neither overbought nor oversold. The STOCH value of 91.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SFWL.

Shengfeng Development Limited Class A Risk Analysis

Shengfeng Development Limited Class A disclosed 70 risk factors in its most recent earnings report. Shengfeng Development Limited Class A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Shengfeng Development Limited Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$82.91M7.639.67%24.75%5.52%
GVGVH
64
Neutral
$7.54M8.3244.81%-11.88%11.17%
64
Neutral
$4.28B11.805.30%250.74%4.12%-9.02%
49
Neutral
$116.10M-23.18%49.48%80.17%
45
Neutral
$42.85M-13.52%3.36%94.32%
45
Neutral
$10.54M-5.73%-1274.56%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SFWL
Shengfeng Development Limited Class A
1.00
-0.78
-43.82%
AIRT
Air T
16.10
-10.03
-38.38%
CRGO
Freightos Limited
2.32
-0.33
-12.45%
PSIG
PS International Group
0.43
-11.43
-96.37%
GVH
Globavend Holdings Ltd.
0.50
-0.79
-61.24%
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.