Zk International Group Co (ZKIN) AI Stock Analysis

• Market Cap: $24.18M
• Dividend Yield: N/A
• Average Volume (3M): 131.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: -17.00%
• EPS Growth: 95.53%
• Country: US
• Employees: 281
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.55
• Shares Outstanding: 17,272,308
• 10 Day Avg. Volume: 33,059
• 30 Day Avg. Volume: 131,140
• PEG Ratio: -0.13
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 65.13
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 6.86
• Enterprise Value/Ebitda: -9.84
• 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: 41 Neutral
• Price Target: $1.50 ▼(-6.83% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by weak financial performance (revenue contraction, ongoing net losses, and rising leverage) and bearish technicals (price below all key moving averages with negative MACD). Improved 2025 operating and free cash flow provides some support, but valuation remains difficult to justify with a negative P/E and no dividend yield data.

Positive Factors

Durable infrastructure end-markets

ZK International serves municipal and industrial infrastructure end-markets (water, sewage, commercial construction). These are large, project-driven demand pools with multi-year replacement and expansion cycles, creating a stable baseline addressable market supportive of recurring product demand.

Positive operating and free cash flow in 2025

After prior-year outflows, the company generated positive operating and free cash flow in 2025, signaling improving cash conversion. Even if modest, this demonstrates an ability to fund some operations internally and reduces immediate liquidity pressure versus persistent cash burn scenarios.

Access to fresh capital via private placement

A planned ~$20M private placement materially strengthens near-term financial flexibility. Additional capital provides resources to stabilize operations, fund working capital or selective investments, and buy time to execute turnaround plans, improving balance-sheet resilience despite dilution risks.

Negative Factors

Material revenue contraction

A sizable revenue decline reduces operational scale and exacerbates fixed-cost absorption in a low-margin manufacturing business. Sustained top-line weakness also undermines bargaining power with suppliers and customers, making margin recovery and stable earnings generation harder over months.

Thin gross margins and ongoing losses

Persistent low gross margins reflect limited pricing power and commodity exposure in steel piping. Coupled with recurring operating losses, this structural margin pressure leaves earnings highly sensitive to raw-material swings and volume declines, challenging sustainable profitability absent structural cost or product mix improvements.

Rising leverage and weaker equity base

Leverage roughly doubled year-over-year, increasing interest and refinancing risk. A weaker equity base reduces financial flexibility and magnifies downside under revenue volatility. Given modest cash flows, higher leverage constrains investment capacity and raises the likelihood of further capital raises or distress if trends persist.

Zk International Group Co Business Overview & Revenue Model

Company Description

ZK International Group Co., Ltd., through its subsidiaries, engages in the designing, producing, and selling double-press thin-walled stainless steel, carbon steel, and single-press tubes and fittings in the People's Republic of China. It offers carbon and stainless steel strips; carbon and stainless steel pipes; light gauge stainless steel pipes; pipe connections and fittings; and couplings, unions, adapters, caps, plug pipes, elbows, three-way fittings, tees, cross, side-inlet elbows, wyes, reducers, bushings, pipe fasteners, and pipe flanges. The company also provides stainless steel band, copper strip, valve, light industry machinery and equipment, and other stainless steel products. Its products are used in various applications, including water and gas transmission within urban infrastructural development, residential housing development, food and beverage production, oil and gas exploitation, and agricultural irrigation. The company also exports its products to Europe, Africa, and Southeast Asia. ZK International Group Co., Ltd. was incorporated in 2015 and is based in Wenzhou, the People's Republic of China.

How the Company Makes Money

Zk International Group Co generates revenue through the sale of its steel products, particularly stainless steel pipes and fittings, which are sold to customers in the construction and industrial sectors. The company also earns income from its services related to the design and engineering of steel structures. Key revenue streams include direct sales to contractors and distributors, as well as partnerships with construction firms and government projects that require high-quality materials. Additionally, ZKIN may benefit from international trade as it exports its products to various markets, further enhancing its revenue potential.

Zk International Group Co Financial Statement Overview

Summary

Financials remain pressured: revenue fell materially in 2025 (~-25% YoY) and profitability is still negative with thin gross margins (~5–7%) and a 2025 net margin around -5.6%. Balance-sheet risk increased as leverage rose (debt-to-equity ~1.12 vs ~0.61 in 2024) and ROE stayed negative (~-16%). Cash flow improved in 2025 with positive operating cash flow (~$0.8M) and positive free cash flow (~$0.2M), but the magnitude is modest and prior-year volatility raises sustainability concerns.

Income Statement

Revenue has been volatile and recently contracted materially (2025 revenue down ~25% year-over-year), pressuring scale in a low-margin business. Profitability remains weak: gross margin has stayed thin (~5–7% most years) and the company is still reporting operating and net losses (2025 net margin ~-5.6%). While losses improved significantly from the very large 2023 loss, the trajectory in 2025 shows renewed deterioration versus 2024, limiting confidence in near-term earnings stability.

Balance Sheet

Leverage has increased meaningfully: debt-to-equity rose to ~1.12 in 2025 from ~0.61 in 2024, and equity has trended down versus prior years. Returns on equity are negative across the period (about -16% in 2025), consistent with ongoing losses and weaker balance-sheet efficiency. Offsetting this, the company still maintains a meaningful equity base relative to assets, but the direction of leverage and negative returns are clear risks.

Cash Flow

Cash generation has been inconsistent. Operating cash flow turned positive in 2025 (~$0.8M) after sizable cash outflows in 2024, and free cash flow was also positive in 2025 (~$0.2M). However, cash conversion remains weak relative to reported losses and revenue scale (2025 operating cash flow is small versus revenue), and the prior-year volatility (large negative operating and free cash flow in 2024) raises sustainability concerns.

Breakdown	Sep 2025	Sep 2024	Mar 2024	Sep 2022	Sep 2021
Income Statement
Total Revenue	71.24M	108.20M	111.60M	102.39M	99.41M
Gross Profit	4.04M	6.55M	1.30M	7.60M	6.47M
EBITDA	-2.82M	-269.20K	-6.26M	309.26K	-2.60M
Net Income	-3.99M	-2.78M	-61.06M	-6.08M	-3.80M
Balance Sheet
Total Assets	62.87M	79.99M	58.67M	128.92M	133.66M
Cash, Cash Equivalents and Short-Term Investments	3.82M	4.06M	5.04M	8.43M	16.09M
Total Debt	23.58M	17.12M	22.00M	20.33M	24.56M
Total Liabilities	38.25M	51.67M	33.43M	43.86M	44.54M
Stockholders Equity	24.62M	28.16M	25.08M	84.68M	88.80M
Cash Flow
Free Cash Flow	191.77K	-7.57M	-2.83M	-3.36M	-3.48M
Operating Cash Flow	780.32K	-6.96M	-1.24M	-2.84M	-3.32M
Investing Cash Flow	-651.99K	-2.35M	-2.29M	-2.11M	-27.15M
Financing Cash Flow	434.54K	7.31M	1.40M	-206.97K	40.08M

Zk International Group Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.61
• 50DMA: Negative
• 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 ZKIN, the sentiment is Neutral. The current price of 1.61 is above the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.57, and below the 200-day MA of 2.08, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 48.01 is Neutral, neither overbought nor oversold. The STOCH value of 57.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZKIN.

Zk International Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HUDI	48 Neutral	$21.16M	-13.91	-0.69%	―	-20.24%	-119.83%
ACNT	46 Neutral	$125.57M	-27.96	-3.84%	―	-29.03%	―
KBSX	42 Neutral	$55.51M	-25.42	―	―	―	-267.14%
ZKIN	41 Neutral	$24.18M	-3.13	-11.31%	―	-17.00%	95.53%

Zk International Group Co Corporate Events

ZK International Group Sets $20 Million Private Placement with Non-U.S. Investors

On February 27, 2026, ZK International Group Co. entered into a securities purchase agreement with certain non-U.S. investors for a private placement of up to 40,040,000 ordinary shares at $0.50 per share, for gross proceeds of approximately $20.02 million, payable in either U.S. dollars or cryptocurrencies at the company’s discretion. The transaction, expected to close in the first quarter of 2026, is being conducted under U.S. private offering exemptions and, if completed, will provide fresh capital that may strengthen ZK International’s balance sheet and could meaningfully dilute existing shareholders while potentially enhancing its financial flexibility in its core industrial operations.

The most recent analyst rating on (ZKIN) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Zk International Group Co stock, see the ZKIN Stock Forecast page.