ZKH Group Limited Sponsored ADR (ZKH)
NYSE:ZKH
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ZKH Group Limited Sponsored ADR
(NYSE:ZKH)
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Rating:45Neutral
Price Target:
$3.00
▼(-18.48% Downside)
Action:Reiterated
Date:05/22/26
The score is held down primarily by weak financial performance (ongoing losses and a 2025 free-cash-flow reversal) and poor technical setup (below major moving averages with negative MACD). These are only partly offset by a more optimistic earnings call pointing to accelerating GMV and a path to profitability, while valuation remains a major headwind due to the very high P/E and no dividend support.
Positive Factors
Operational profitability turnaround
Sustained positive non‑GAAP EBITDA indicates the company is converting top‑line growth into operating leverage. If management maintains cost discipline and productivity gains, recurring positive EBITDA supports reinvestment, deleveraging and a durable path toward GAAP profitability over the next 2–6 months.
Negative Factors
Inconsistent cash generation
Volatile and negative free cash flow in 2025 underscores working‑capital and execution risks. If cash conversion remains inconsistent, the company may need external funding for growth initiatives or incur higher costs, constraining durable margin improvement and strategic investments over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational profitability turnaround
Sustained positive non‑GAAP EBITDA indicates the company is converting top‑line growth into operating leverage. If management maintains cost discipline and productivity gains, recurring positive EBITDA supports reinvestment, deleveraging and a durable path toward GAAP profitability over the next 2–6 months.
Read all positive factors
ZKH Group Limited Sponsored ADR (ZKH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$449.17M
Dividend YieldN/A
Average Volume (3M)22.12K
Price to Earnings (P/E)―
Beta (1Y)0.10
Revenue Growth5.41%
EPS Growth65.41%
CountryUS
Employees3,476
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-1.26
Shares Outstanding129,693,760
10 Day Avg. Volume15,516
30 Day Avg. Volume22,119
Financial Highlights & Ratios
PEG Ratio0.63
Price to Book (P/B)1.42
Price to Sales (P/S)0.48
P/FCF Ratio-97.11
Enterprise Value/Market Cap5.42
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit1.64
Enterprise Value/Ebitda-12.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.33
Revenue Forecast (FY)$9.72B
ZKH Group Limited Sponsored ADR Business Overview & Revenue Model
Company Description
ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People's Republic of ...
How the Company Makes Money
ZKH Group Limited primarily makes money by earning revenue from providing industrial procurement and supply chain services to business customers through its platform. Key revenue streams include: (1) sales of industrial products procured and fulfi...
ZKH Group Limited Sponsored ADR Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 21, 2026
Earnings Call Sentiment Positive
The call emphasized a clear operational and financial recovery: double‑digit GMV growth, top‑line acceleration, significant expense discipline, positive non‑GAAP EBITDA and a small non‑GAAP profit. Key strategic initiatives (SKU expansion, private label development, fulfillment automation and AI deployment) underpin confidence in sustained improvement. Near‑term weaknesses include a slight YoY gross margin decline driven by product mix, continued (though much smaller) operating loss on a GAAP basis, category-specific margin pressure, and limited current contribution from private labels and international profitability. Overall, the positives—meaningful revenue/GMV acceleration, strong cost reductions, productivity gains, improved cash flow and tangible AI/fulfillment progress—outweigh the lowlights, though some margin and concentration risks remain.Positive Updates
GMV Acceleration
GMV increased 12.9% year-over-year to RMB 2.45 billion, marking meaningful acceleration versus both the year-ago period and the prior quarter; management expects further acceleration in Q2 based on current order/shipment trends.
Negative Updates
Gross Margin Decline Year‑over‑Year
Gross margin moderated from 17.2% to 16.7% year-over-year despite sequential improvement; gross profit grew only 6.6% YoY to RMB 354 million, lagging revenue growth, reflecting margin pressure from product mix.
Read all updates
Q1-2026 Updates
Positive
Negative
GMV Acceleration
GMV increased 12.9% year-over-year to RMB 2.45 billion, marking meaningful acceleration versus both the year-ago period and the prior quarter; management expects further acceleration in Q2 based on current order/shipment trends.
Read all positive updates
Company Guidance
Management guided to achieve double‑digit GMV growth and full‑year profitability in 2026, expecting Q2 GMV to accelerate from Q1’s 12.9% YoY (RMB 2.45bn) and targeting breakeven for the international business this year; they set technology and product targets including a knowledge graph exceeding 100 million industrial product data points and 10 million industry relations, raising AI‑powered product identification to 70% overall (80–90% for data‑intensive lines like fasteners, pumps, pipes & valves and hand tools) by end‑2026, and increasing AI code generation from ~30% to 80% in 2026; they also reiterated a long‑term private‑label target of >30% of GMV (Q1 private label = 9.7%) and signaled continued work to reduce fulfillment cost ratios and grow AI‑driven sales.ZKH Group Limited Sponsored ADR Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
58
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.75B | 8.99B | 8.76B | 8.72B | 8.32B | 7.65B |
| Gross Profit | 1.48B | 1.48B | 1.51B | 1.45B | 1.32B | 1.04B |
| EBITDA | -196.05M | -79.35M | -265.30M | -211.90M | -561.34M | -1.03B |
| Net Income | -231.09M | -139.74M | -268.04M | -304.31M | -735.68M | -1.12B |
Balance Sheet | ||||||
| Total Assets | 6.26B | 6.53B | 6.61B | 7.39B | 6.81B | 5.94B |
| Cash, Cash Equivalents and Short-Term Investments | 1.75B | 1.92B | 1.97B | 1.96B | 1.95B | 538.00M |
| Total Debt | 535.38M | 427.32M | 548.65M | 831.35M | 570.96M | 666.49M |
| Total Liabilities | 3.27B | 3.59B | 3.51B | 4.18B | 10.88B | 8.71B |
| Stockholders Equity | 2.99B | 2.94B | 3.10B | 3.21B | -4.07B | -2.77B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -43.05M | 146.03M | -623.51M | -554.31M | -1.54B |
| Operating Cash Flow | 0.00 | 8.55M | 229.07M | -567.95M | -504.20M | -1.38B |
| Investing Cash Flow | 0.00 | -315.63M | 276.08M | -908.30M | -37.04M | -94.39M |
| Financing Cash Flow | 0.00 | -101.62M | -255.28M | 715.72M | 1.30B | 174.63M |
ZKH Group Limited Sponsored ADR Technical Analysis
Negative
3.68
Price Trends
2.99
Negative
3.22
Negative
3.14
Negative
Market Momentum
-0.07
Positive
44.28
Neutral
61.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZKH, the sentiment is Negative. The current price of 3.68 is above the 20-day moving average (MA) of 2.92, above the 50-day MA of 2.99, and above the 200-day MA of 3.14, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 61.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZKH.
ZKH Group Limited Sponsored ADR Risk Analysis
ZKH Group Limited Sponsored ADR disclosed 105 risk factors in its most recent earnings report. ZKH Group Limited Sponsored ADR 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
ZKH Group Limited Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $644.69M | 9.65 | 118.50% | 8.47% | 5.55% | 111.23% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $361.33M | 64.94 | 2.37% | ― | -2.04% | -11.43% | |
60 Neutral | $385.28M | ― | -10.61% | ― | -9.56% | -862.29% | |
52 Neutral | $453.24M | -7.13 | -32.45% | ― | -14.77% | 79.60% | |
51 Neutral | $870.56M | 30.10 | 7.19% | 2.59% | -10.63% | 672.41% | |
45 Neutral | $449.17M | -38.14 | -2.82% | ― | 5.41% | 65.41% |
* Consumer Cyclical Sector Average
ZKH
ZKH Group Limited Sponsored ADR
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-1.69%
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ZKH Group Limited Sponsored ADR Corporate Events
ZKH Group Posts Strong Q1 2026 Growth and Nears Profitability on MRO Platform Expansion
May 21, 2026
On May 21, 2026, ZKH Group Limited reported unaudited results for the first quarter ended March 31, 2026, highlighting 12.9% year‑on‑year GMV growth to RMB 2.45 billion and 9.2% revenue growth to RMB 2.11 billion, driven by strong dema...
ZKH Group Swings to Q4 Profit as SME Demand and AI Efficiency Offset Full-Year GMV Dip
Mar 19, 2026
On March 19, 2026, ZKH Group Limited reported unaudited results for the fourth quarter and fiscal year ended December 31, 2025, showing fourth-quarter GMV up 8.5% year-on-year to RMB 2.92 billion and net revenues up 7.9% to RMB 2.56 billion. The c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.