Shengfeng Development Limited Class A (SFWL) AI Stock Analysis

• Market Cap: $93.42M
• Dividend Yield: N/A
• Average Volume (3M): 24.73K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.34
• Revenue Growth: 21.10%
• EPS Growth: 31.75%
• Country: US
• Employees: 1,263
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.13
• Shares Outstanding: 40,617,510
• 10 Day Avg. Volume: 16,175
• 30 Day Avg. Volume: 24,729
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 5.72
• 1Y Price Target: $1.00
• Price Target Upside: -13.04% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: $1.00 ▼(-13.04% Downside)

Shengfeng Development Limited's strong financial performance, with robust revenue growth and stable margins, is the primary driver of its score. Technical indicators support a positive short-term trend, and the valuation suggests the stock is undervalued. The absence of earnings call data and corporate events does not impact the overall assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and competitive positioning.

Operational Efficiency

Improved operational efficiency and cost management enhance profitability and provide a competitive edge, supporting sustainable growth and margin stability.

Cash Generation

Positive operating cash flow reflects strong core business performance, enabling reinvestment in growth opportunities and enhancing financial resilience.

Negative Factors

Increasing Debt

Rising debt levels can strain financial resources and limit flexibility, potentially impacting long-term growth and stability if not managed effectively.

Negative Free Cash Flow

Negative free cash flow due to high capital expenditures may affect liquidity, requiring careful management to ensure continued investment without financial strain.

Leverage Challenges

Increasing leverage could pose risks to financial stability, necessitating prudent debt management to maintain a healthy balance sheet and support growth.

Shengfeng Development Limited Class A Business Overview & Revenue Model

Company Description

Shengfeng Development Limited, through its subsidiaries, provides contract logistics services in the People's Republic of China. The company offers business-to-business freight transportation services, such as full truckload and less than truckload; cloud storage services, including warehouse management, order fulfillment, delivery process management, in-warehouse processing, and inventory optimization management services; and value-added services comprising collection on delivery, delivery upstairs, packaging, pay-at-arrival, return proof of delivery, and shipment protection. It serves clients in various industries, including manufacturing, energy, telecommunications, internet, fashion, fast moving consumer goods, publishing, agriculture, and e-commerce. Shengfeng Development Limited was founded in 2001 and is based in Fuzhou, the People's Republic of China.

How the Company Makes Money

Shengfeng Development Limited generates revenue primarily through its logistics and supply chain management services. The company earns money by offering transportation solutions that include freight forwarding and delivery services, which are billed based on shipment volume, distance, and service level. Additionally, Shengfeng derives income from warehousing services, where customers pay for storage space and inventory management solutions. The company may also benefit from strategic partnerships with other logistics providers and technology firms to enhance its service offerings, thus attracting more business and driving its revenue growth. Significant factors influencing its earnings include the demand for logistics services, operational efficiency, and the ability to maintain competitive pricing.

Shengfeng Development Limited Class A Financial Statement Overview

Summary

Shengfeng Development Limited shows strong revenue and income growth with stable margins. The balance sheet is balanced, but attention is needed on the negative free cash flow due to high capital expenditures.

Income Statement

Shengfeng Development Limited has demonstrated consistent revenue growth over the years, with a notable increase from $232.6 million in 2019 to $504.2 million in 2024. Gross profit and net income margins have also remained stable, contributing to a strong financial position. The EBIT and EBITDA margins improved, indicating enhanced operational efficiency and cost management.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, which indicates a balanced approach to leverage. Stockholders' equity has grown consistently, enhancing the equity ratio. However, the total debt has increased over time, which could present future leverage challenges if not managed carefully.

Cash Flow

Operating cash flow shows a positive trend, signaling good operational cash generation. However, the free cash flow remains negative due to significant capital expenditures, which may impact future liquidity if not paired with revenue growth or cost reduction strategies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	504.16M	404.12M	370.32M	346.70M	287.46M
Gross Profit	46.28M	46.51M	41.53M	41.34M	35.98M
EBITDA	27.36M	29.60M	28.31M	24.84M	22.05M
Net Income	10.88M	10.29M	7.79M	6.90M	6.09M
Balance Sheet
Total Assets	310.13M	265.84M	245.26M	244.21M	232.18M
Cash, Cash Equivalents and Short-Term Investments	34.67M	26.73M	21.29M	18.64M	27.32M
Total Debt	81.30M	61.81M	76.84M	75.57M	76.84M
Total Liabilities	186.68M	153.53M	150.17M	148.31M	147.80M
Stockholders Equity	117.14M	107.95M	91.22M	91.59M	82.62M
Cash Flow
Free Cash Flow	-23.55M	-14.58M	-318.00K	-9.09M	-5.61M
Operating Cash Flow	15.01M	12.11M	6.93M	16.59M	2.33M
Investing Cash Flow	-32.63M	-18.82M	-6.71M	-23.87M	-7.82M
Financing Cash Flow	29.07M	13.19M	6.05M	-2.13M	13.14M

Shengfeng Development Limited Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFWL, the sentiment is Positive. The current price of 1.15 is above the 20-day moving average (MA) of 1.07, above the 50-day MA of 1.03, and above the 200-day MA of 1.02, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 66.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFWL.

Shengfeng Development Limited Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFWL	79 Outperform	$93.42M	8.10	9.93%	―	21.10%	31.75%
Sector *	63 Neutral	$10.74B	15.33	7.44%	2.00%	2.86%	-14.57%
AIRT	55 Neutral	$70.27M	―	-790.22%	―	5.14%	-17.39%
CRGO	55 Neutral	$150.63M	―	-23.18%	―	49.48%	80.17%
GVH	51 Neutral	$6.54M	0.66	18.17%	―	22.89%	-46.58%
PSIG	46 Neutral	$12.73M	―	-5.73%	―	―	―
NCEW	―	$12.83M	―		―	―	―