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

• Market Cap: $131.47M
• Dividend Yield: N/A
• Average Volume (3M): 168.02K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 2.01
• 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: 1.72
• 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: 56 Neutral
• Price Target: $2.00 ▼(-0.50% Downside)

ZJK's overall stock score is primarily influenced by its strong financial performance, despite cash flow challenges. The bearish technical indicators and high P/E ratio suggest caution. The lack of earnings call data and corporate events further limit insights into future performance.

Positive Factors

Strategic Partnership

The partnership to build a gigafactory in the U.S. enhances ZJK's market position in high-tech manufacturing, expanding its footprint and capabilities in AI and semiconductor industries.

Revenue Growth

Consistent revenue growth indicates robust demand for ZJK's products, supporting long-term business expansion and market competitiveness.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and growth opportunities.

Negative Factors

Cash Flow Challenges

Declining cash flow growth poses liquidity risks, potentially limiting ZJK's ability to invest in new projects and meet financial obligations.

Profit Margin Decline

Decreasing profit margins suggest rising operational costs or pricing pressures, which could affect long-term profitability and competitiveness.

Operational Cost Increase

Rising operational costs can erode profitability and impact ZJK's ability to maintain competitive pricing, affecting market position.

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

Company Description

ZJK Industrial Co., Ltd. is a leading manufacturer and supplier specializing in high-quality industrial components and systems. Operating across various sectors including automotive, aerospace, and manufacturing, ZJK focuses on producing precision-engineered parts, assembly solutions, and complete systems that meet rigorous industry standards. With a commitment to innovation and sustainability, the company leverages advanced technologies to enhance product performance and efficiency.

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: Negative
• Last Price: 2.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZJK, the sentiment is Negative. The current price of 2.01 is below the 20-day moving average (MA) of 2.69, below the 50-day MA of 2.60, and below the 200-day MA of 3.69, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 37.89 is Neutral, neither overbought nor oversold. The STOCH value of 7.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	56 Neutral	$131.47M	30.13	12.98%	―	―	―