ZJK Industrial Co., Ltd. (ZJK) AI Stock Analysis

• Market Cap: $198.49M
• Dividend Yield: N/A
• Average Volume (3M): 168.02K
• Price to Earnings (P/E): 46.6
• Beta (1Y): 1.63
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 403
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial Goods
• EPS (TTM): N/A
• Shares Outstanding: 63,822,250
• 10 Day Avg. Volume: 458,500
• 30 Day Avg. Volume: 168,019
• PEG Ratio: -2.89
• Price to Book (P/B): 18.89
• Price to Sales (P/S): 15.00
• P/FCF Ratio: 200.75
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 4.88
• Enterprise Value/Gross Profit: 12.33
• Enterprise Value/Ebitda: 67.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $3.50 ▲(12.54% Upside)

ZJK's overall stock score is primarily influenced by its strong financial performance, particularly in revenue growth and balance sheet stability. However, significant cash flow issues and a high P/E ratio suggest potential risks. The technical analysis indicates bearish momentum, with overbought conditions that could lead to a price correction.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for ZJK's products and services, supporting long-term market presence and expansion.

Balance Sheet Stability

Low leverage enhances financial stability, providing ZJK with flexibility to invest in growth opportunities and weather economic downturns.

Industry Partnerships

Strategic partnerships ensure stable, recurring revenue and enhance product offerings, positioning ZJK for sustained industry leadership.

Negative Factors

Cash Flow Challenges

Declining cash flow growth indicates potential liquidity issues, which could limit ZJK's ability to invest in new projects or manage debt.

Profit Margin Pressure

Decreasing profit margins suggest rising costs or pricing pressures, which could impact long-term profitability if not addressed.

Operational Cost Increase

Rising operational costs may erode profitability, necessitating efficiency improvements to maintain competitive advantage.

ZJK Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

ZJK Industrial Co., Ltd., through its subsidiaries, manufactures and sells precision fasteners, structural parts, and other precision metal parts products in the People's Republic of China, Taiwan, Singapore, the United States, and internationally. It offers screws, nuts, bolts, turning parts, stamping parts, and computer numerical control (CNC) machining parts, as well as surface mounting technology (SMT) products and physical vapor deposition (PVD) products. The company's products are used in new energy vehicles, mobile phones, smart watches, drones, 5G communication base stations, and other electronic equipment. The company was founded in 2011 and is headquartered in Shenzhen, the People's Republic of China. ZJK Industrial Co., Ltd. operates as a subsidiary of DNR Technology Co., Ltd.

How the Company Makes Money

ZJK Industrial Co., Ltd. generates revenue primarily through the sale of its industrial components and systems to a diverse range of clients in multiple sectors. The company's revenue model is built on direct sales, long-term contracts, and customized solutions tailored to meet specific customer needs. Key revenue streams include the manufacturing and distribution of precision parts, assembly services, and maintenance contracts. Additionally, ZJK has established significant partnerships with major firms in the automotive and aerospace industries, which contribute to stable, recurring revenue. Strategic collaborations with technology providers also enhance their product offerings, allowing them to penetrate new markets and expand their customer base, further driving earnings.

ZJK Industrial Co., Ltd. Financial Statement Overview

Summary

ZJK Industrial Co., Ltd. demonstrates strong revenue growth and a stable balance sheet with low leverage. However, declining profitability margins and significant cash flow challenges pose potential risks. The company needs to address its cash flow issues to maintain financial health and support future growth.

Income Statement

ZJK Industrial Co., Ltd. shows strong revenue growth with a 10.08% increase in TTM, supported by a solid gross profit margin of 39.60%. However, the net profit margin has slightly decreased to 8.87% in TTM from 9.74% in the previous year, indicating some pressure on profitability. The EBIT and EBITDA margins have also declined, suggesting increased operational costs or other expenses.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.06 in TTM, indicating low leverage and financial stability. Return on equity remains healthy at 12.23%, although it has decreased from previous years. The equity ratio is robust, reflecting a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth rate to -200.39% in TTM. The operating cash flow to net income ratio is very low at 0.39%, indicating potential liquidity issues. The negative free cash flow to net income ratio suggests that the company is not generating sufficient free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.28M	37.81M	29.06M	24.79M	17.50M
Gross Profit	18.33M	13.57M	11.02M	9.01M	5.32M
EBITDA	3.36M	3.53M	10.16M	9.17M	3.82M
Net Income	4.11M	3.68M	7.69M	7.28M	2.99M
Balance Sheet
Total Assets	64.01M	55.77M	38.28M	32.10M	24.24M
Cash, Cash Equivalents and Short-Term Investments	16.77M	14.81M	2.83M	1.10M	1.00M
Total Debt	2.29M	4.44M	1.59M	3.21M	3.81M
Total Liabilities	26.87M	25.70M	16.58M	17.63M	16.29M
Stockholders Equity	37.12M	30.04M	21.70M	14.47M	7.95M
Cash Flow
Free Cash Flow	-3.45M	2.83M	3.75M	-359.98K	-962.63K
Operating Cash Flow	97.97K	5.34M	4.12M	814.63K	2.36M
Investing Cash Flow	-4.94M	-2.80M	1.29M	-289.75K	-3.32M
Financing Cash Flow	8.86M	6.75M	-2.95M	-357.65K	1.95M

ZJK Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZJK, the sentiment is Positive. The current price of 3.11 is above the 20-day moving average (MA) of 2.35, above the 50-day MA of 2.86, and below the 200-day MA of 4.05, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 69.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZJK.

ZJK Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZJK	61 Neutral	$198.49M	46.63	12.98%	―	―	―
CVRX	49 Neutral	$258.17M	―	-91.88%	―	18.44%	25.42%
0969	44 Neutral	HK$260.75M	―	―	―	-10.09%	25.95%