Bedrijfsoverzicht
ZK International Group Co., Ltd. is a manufacturer and distributor based in the People's Republic of China that specializes in the designing, producing, and selling of pipes and fitting products. The company operates within the Basic Materials sector and specifically within the Steel industry, providing a range of industrial materials including carbon steel and stainless steel strips, light gauge stainless steel pipes, and various pipe connections and fittings used for extending or terminating piping systems. This entity maintains a market capitalization of $77.94M and reports an annual revenue of $71.24M based on trailing twelve-month figures, while employing a workforce of 274 individuals. These valuation and revenue metrics indicate that the company operates as a micro-cap entity with a relatively small scale compared to major global steel producers, suggesting a niche focus within the domestic Chinese market rather than broad international dominance.
Financiële gezondheid
The company reported a revenue of $71.24M over the trailing twelve months, yet it generated a net income of $-3,985,184, revealing a significant gap where operating expenses and cost of goods sold substantially exceeded gross revenues. The EBITDA stands at $-3,383,987, further confirming that the core operational cash generation before interest and taxes is currently negative. Free cash flow is reported at $-173,871, which indicates that the company is currently consuming cash rather than generating it, thereby limiting its immediate financial flexibility for organic expansion or capital expenditures without external financing. Profitability is severely impacted by a gross margin of 5.7%, an operating margin of -12.0%, and a profit margin of -5.6%, all of which collectively demonstrate that the company is unable to cover its fixed costs with its current pricing structure or volume. Regarding liquidity and leverage, the firm holds $2.31M in cash against a total debt burden of $27.46M, resulting in a debt-to-equity ratio of 111.55, which signifies a highly leveraged balance sheet rather than a conservative one. The current ratio is 1.44, suggesting that the company possesses sufficient current assets to cover its short-term liabilities, though the margin for error is narrow given the negative earnings. Finally, the return on equity is -15.2% and the return on assets is -3.7%, metrics that reveal management is currently destroying shareholder value and utilizing assets inefficiently to generate profit.
Waarderingsbeoordeling
Valuation multiples for ZKIN are unavailable in the traditional sense, as the P/E Ratio (TTM) and Forward P/E are both listed as N/A, implying that the absence of positive earnings makes the calculation of a trailing or forward price-to-earnings multiple mathematically impossible under standard financial modeling. Despite the lack of a P/E multiple, the Price to Book ratio is 0.37, indicating that the market values the company at a significant discount relative to its book value, which often occurs when investors anticipate high risks or potential restructuring within the steel sector. Alternative valuation metrics provide further context, with a Price to Sales ratio of 1.09 and an EV/EBITDA of -14.41, suggesting that the market is pricing the stock based on sales volume rather than profitability, while the negative EV/EBITDA reflects the company's current loss-making status. In terms of trading range, the stock has a 52-Week High of $4.47 and a 52-Week Low of $0.84, placing the current market price well below the recent highs and reflecting significant downward pressure over the past year. The stock exhibits a Beta of 2.30, which means that the share price is expected to be approximately 130% more volatile than the broader market index, amplifying both potential gains and losses during periods of market fluctuation.
Growth & Income
The company experienced a revenue growth of -43.5% year over year, while earnings growth is N/A due to the negative net income; this contraction in sales indicates a sharp decline in demand or market share within the Chinese steel pipe industry. Because the company does not pay dividends, evidenced by a Dividend Yield of N/A and a Payout Ratio of 0.0%, it does not distribute cash to shareholders, meaning all available cash flow is retained to support operations or pay down debt rather than being paid out. The negative revenue growth combined with negative earnings growth implies that the company is currently in a defensive or contractionary phase, relying on its asset base to survive rather than expanding operations. Overall, the growth and income profile for ZKIN is characterized by significant sales contraction, a complete absence of dividend income, and a reliance on retained earnings to offset substantial operating losses in a highly volatile market environment.