ZKH Consumer Cyclical

ZKH Group Limited

$1.50-9.64%

Price as of close on Nov 3, 2026 · Financials updated Oct 1, 2026

Basics

Sector: Consumer Cyclical
Industry: Internet Retail
Country: China
Market cap: 236.7M USD
Enterprise value: 41.0M USD
Full-time employees: 2,933

Overall health

Strength: lower risk than most peers: a steadier share price and less debt relative to equitylower risk: a steadier share price and less debt vs equity
Drawback: less profitable than most peersless profitable than peers
Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
About average: growth

Ranks #1,182 of 1,502 consumer cyclical companies (bottom 22%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 357% from December 2022 to December 2025.
ZKH had 357% more shares at December 2025 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.ZKH had 357% more shares at December 2025 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.
Operating loss narrowing. Operating margin -2.4% in 2025, the smallest loss relative to revenue of the last 5 years.
ZKH still lost money on operations in 2025 (margin -2.4%), but that was its smallest operating loss relative to revenue in the 5 years of filings we have.
Not profitable yet. Reported a loss in the 12 months to December 2025.
ZKH reported a net loss over the last twelve months, so earnings-based measures can't show it as cheap.
Financials may be out of date. Latest financial period ended 10 months ago.
The latest financial period we have ended 10 months ago, so the scores may not reflect recent results.

StockQuotient Score

35/ 100

Oct 5 35 → Nov 4 35

Valuation

Is the price right?

6/100

Weak

3/3 inputs reported · High confidence

Since last year: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ Earnings yield
▼ EBITDA yield
▼ FCF yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield-8.8%

SEC filings · 12 months to Dec 2025 · CNY→USD at the current rateNegative (a loss or cash outflow), so it counts as zero whatever the share price30% base weight · Z-score -1.34Sector median: 0.0439 · MAD: 0.0329

EBITDA yield-105.5%

SEC filings · 12 months to Dec 2025 · CNY→USD at the current rateNegative (a loss or cash outflow), so it counts as zero whatever the share price50% base weight · Z-score -1.90Sector median: 0.0877 · MAD: 0.0461

Free cash flow yield-2.8%

SEC filings · 12 months to Dec 2025 · CNY→USD at the current rate · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score -1.13Sector median: 0.0614 · MAD: 0.0545

Other data (not scored)

Book yield186.0%

SEC filings · latest balance sheet · CNY→USD at the current rateReported valueInformational · 0% composite weightSector median: 0.5650 · MAD: 0.3500

Growth

Is it growing?

47/100

Moderate

3/3 inputs reported · High confidence

Since last year: ▲ Stronger

12-month revenue up 2.6%

Why

Close to the peer norm on every measure.

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growthUnavailable

Still loss-making, but the loss per share narrowed33% base weight · Z-score 0.33Sector median: 0.0420 · MAD: 0.2537

3-year revenue growth2.6%

SEC filings · 3 years to Dec 2025Reported value33% base weight · Z-score -0.26Sector median: 0.0425 · MAD: 0.0636

Revenue growth2.6%

SEC filings · 12 months to Dec 2025Reported value33% base weight · Z-score -0.18Sector median: 0.0373 · MAD: 0.0653

Profitability

Does it earn well?

9/100

Weak

3/3 inputs reported · High confidence

Since last year: ▼ Weaker

Free cash flow turned negative over the last 12 months

Why

Weaker than most peers on:

▼ ROIC
▼ ROA
▼ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin-2.4%

SEC filings · 12 months to Dec 2025Reported value33% base weight · Z-score -1.90Sector median: 0.0638 · MAD: 0.0461

Return on assets-2.1%

SEC filings · 12 months to Dec 2025Reported value33% base weight · Z-score -2.14Sector median: 0.0331 · MAD: 0.0254

Return on invested capital-7.7%

SEC filings · 12 months to Dec 2025Reported value33% base weight · Z-score -2.50Sector median: 0.0733 · MAD: 0.0600

Other data (not scored)

Gross margin16.4%

SEC filings · 12 months to Dec 2025Reported valueInformational · 0% composite weightSector median: 0.3025 · MAD: 0.1399

Return on equity-4.8%

SEC filings · 12 months to Dec 2025Reported valueInformational · 0% composite weightSector median: 0.0746 · MAD: 0.0674

Risk

Debt, liquidity, price swings

Lower

Lower relative risk

3/3 inputs reported · High confidence

Since last year: No major change

Why

Stronger than most peers on:

▲ Debt / equity
▲ Beta
▲ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.40

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score 0.80Sector median: 0.6345 · MAD: 0.2980

Current ratio1.79×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.56Sector median: 1.4800 · MAD: 0.5570

Debt / equity0.10×

SEC filings · latest balance sheetReported value33% base weight · Z-score 1.03Sector median: 0.4646 · MAD: 0.3556

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about ZKH

Is ZKH getting weaker?: Its latest SEC filing (Apr 24, 2026) got weaker in some ways: free cash flow turned negative over the last 12 months. Its overall score is unchanged at 35/100 since Oct 28, 2026.
How is ZKH valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 6/100 against 1,612 consumer cyclical peers. Earnings yield -8.8% vs a peer median of 4.4% (weaker than 100% of peers).Earnings yield -8.8% vs peers 4.4% (weaker than 100% of peers).
Is ZKH growing?: At about the same pace as its peers. Growth scores 47/100 against 1,612 consumer cyclical peers.
How profitable is ZKH?: Less profitable than most of its peers. Profitability scores 9/100 against 1,612 consumer cyclical peers. Return on invested capital -7.7% vs a peer median of 7.3% (weaker than 92% of peers).Return on invested capital -7.7% vs peers 7.3% (weaker than 92% of peers).
How risky is ZKH?: Lower risk relative to 1,612 consumer cyclical peers, judged on debt, liquidity and share-price swings. Debt / equity 0.10× vs a peer median of 0.46× (stronger than 83% of peers).Debt / equity 0.10× vs peers 0.46× (stronger than 83% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Year ended Dec 31, 2025 · filed Apr 24, 2026 · compared with the year ended Dec 31, 2024

Got weaker

Free cash flow turned negative over the last 12 months

Worth watching: ZKH is in the bottom fifth of its sector on profitability. From 2021 to 2025, 63% of companies in that position posted a loss over the following year, against 4% for the top fifth.

	Previous year	Latest year	Change
Revenue (12 months)	8.8B CNY	9.0B CNY	+2.6%
Net income (12 months)	−268.0M CNY	−139.7M CNY	−47.9%
Operating margin	-3.9%	-2.4%	+1.5 pts
Free cash flow (12 months)	149.9M CNY	−44.3M CNY	turned negative
Debt	350.9M CNY	285.0M CNY	−18.8%
Cash	1.4B CNY	1.0B CNY	−27.6%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one year at a time.

Financials

Fiscal years from SEC annual filings · change vs the prior year · amounts in CNY, as reported

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	13.6%	15.8%	16.7%	17.2%	16.4%	▼ 0.8 pts
Operating margin	-14.5%	-8.2%	-4.6%	-3.9%	-2.4%	▲ 1.5 pts
Net margin	-14.7%	-8.8%	-3.5%	-3.1%	-1.6%	▲ 1.5 pts
Return on assets (ROA)	—	-10.8%	-4.1%	-4.1%	-2.1%	▲ 1.9 pts
Return on equity (ROE)	—	—	-9.5%	-8.7%	-4.8%	▲ 3.9 pts
Free cash flow margin	-20.0%	-6.5%	-7.1%	1.7%	-0.5%	▼ 2.2 pts
Current ratio	—	1.80×	1.73×	1.85×	1.79×	▼ 3.3%
Quick ratio	—	1.62×	1.56×	1.67×	1.60×	▼ 4.2%
Debt to equity	—	—	0.18×	0.11×	0.10×	▼ 14%
Interest coverage	-104.83×	-7.28×	-20.61×	-17.83×	-18.80×	▼ 5.4%

ZKH price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: lower risk than most peers: a steadier share price and less debt relative to equitylower risk: a steadier share price and less debt vs equity

Drawback: less profitable than most peersless profitable than peers

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

About average: growth

Ranks #1,182 of 1,502 consumer cyclical companies (bottom 22%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 357% from December 2022 to December 2025.

ZKH had 357% more shares at December 2025 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.ZKH had 357% more shares at December 2025 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

Operating loss narrowing. Operating margin -2.4% in 2025, the smallest loss relative to revenue of the last 5 years.

ZKH still lost money on operations in 2025 (margin -2.4%), but that was its smallest operating loss relative to revenue in the 5 years of filings we have.

Not profitable yet. Reported a loss in the 12 months to December 2025.

ZKH reported a net loss over the last twelve months, so earnings-based measures can't show it as cheap.

Financials may be out of date. Latest financial period ended 10 months ago.

The latest financial period we have ended 10 months ago, so the scores may not reflect recent results.

Questions investors ask about ZKH

Is ZKH getting weaker?

Its latest SEC filing (Apr 24, 2026) got weaker in some ways: free cash flow turned negative over the last 12 months. Its overall score is unchanged at 35/100 since Oct 28, 2026.

How is ZKH valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 6/100 against 1,612 consumer cyclical peers. Earnings yield -8.8% vs a peer median of 4.4% (weaker than 100% of peers).Earnings yield -8.8% vs peers 4.4% (weaker than 100% of peers).

Is ZKH growing?

At about the same pace as its peers. Growth scores 47/100 against 1,612 consumer cyclical peers.

How profitable is ZKH?

Less profitable than most of its peers. Profitability scores 9/100 against 1,612 consumer cyclical peers. Return on invested capital -7.7% vs a peer median of 7.3% (weaker than 92% of peers).Return on invested capital -7.7% vs peers 7.3% (weaker than 92% of peers).

How risky is ZKH?

Lower risk relative to 1,612 consumer cyclical peers, judged on debt, liquidity and share-price swings. Debt / equity 0.10× vs a peer median of 0.46× (stronger than 83% of peers).Debt / equity 0.10× vs peers 0.46× (stronger than 83% of peers). A relative measure, not a bankruptcy probability.

Previous year

Latest year

Change

Revenue (12 months)

8.8B CNY

9.0B CNY

+2.6%

Net income (12 months)

−268.0M CNY

−139.7M CNY

−47.9%

Operating margin

-3.9%

-2.4%

+1.5 pts

Free cash flow (12 months)

149.9M CNY

−44.3M CNY

turned negative

Debt

350.9M CNY

285.0M CNY

−18.8%

Cash

1.4B CNY

1.0B CNY

−27.6%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

13.6%

15.8%

16.7%

17.2%

16.4%

▼ 0.8 pts

Operating margin

-14.5%

-8.2%

-4.6%

-3.9%

-2.4%

▲ 1.5 pts

Net margin

-14.7%

-8.8%

-3.5%

-3.1%

-1.6%

▲ 1.5 pts

Return on assets (ROA)

—

-10.8%

-4.1%

-2.1%

▲ 1.9 pts

Return on equity (ROE)

—

-9.5%

-8.7%

-4.8%

▲ 3.9 pts

Free cash flow margin

-20.0%

-6.5%

-7.1%

1.7%

-0.5%

▼ 2.2 pts

Current ratio

—

1.80×

1.73×

1.85×

1.79×

▼ 3.3%

Quick ratio

—

1.62×

1.56×

1.67×

1.60×

▼ 4.2%

Debt to equity

—

0.18×

0.11×

0.10×

▼ 14%

Interest coverage

-104.83×

-7.28×

-20.61×

-17.83×

-18.80×

▼ 5.4%