NasdaqCM:ZKIN

Stock Analysis Report

Executive Summary

ZK International Group Co., Ltd., through its subsidiaries, designs, produces, and sells double-press thin-walled stainless steel, carbon steel, and single-press tubes and fittings in the People’s Republic of China.

Rewards

PE ratio (3.3x) is below the US market (18.9x)

Earnings grew by 9.1% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($26M)



Snowflake Analysis

Fair value with acceptable track record.

Share Price & News

How has ZK International Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZKIN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.3%

ZKIN

-0.02%

US Metals and Mining

1.2%

US Market


1 Year Return

-0.9%

ZKIN

13.1%

US Metals and Mining

24.2%

US Market

Return vs Industry: ZKIN underperformed the US Metals and Mining industry which returned 17.5% over the past year.

Return vs Market: ZKIN underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ZKINIndustryMarket
7 Day7.3%-0.02%1.2%
30 Day33.3%0.7%3.5%
90 Day37.7%11.6%11.7%
1 Year-0.9%-0.9%16.5%13.1%26.9%24.2%
3 Yearn/a2.1%-3.4%53.0%43.2%
5 Yearn/a34.6%24.2%75.3%56.0%

Price Volatility Vs. Market

How volatile is ZK International Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ZK International Group undervalued compared to its fair value and its price relative to the market?

3.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ZKIN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ZKIN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ZKIN is good value based on its PE Ratio (3.3x) compared to the Metals and Mining industry average (11.4x).

PE vs Market: ZKIN is good value based on its PE Ratio (3.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZKIN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZKIN is good value based on its PB Ratio (0.6x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is ZK International Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.4%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ZK International Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has ZK International Group performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZKIN has high quality earnings.

Growing Profit Margin: ZKIN's current net profit margins (12.1%) are lower than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: ZKIN's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: ZKIN's earnings growth over the past year (9.1%) is below its 5-year average (11.1% per year).

Earnings vs Industry: ZKIN earnings growth over the past year (9.1%) exceeded the Metals and Mining industry -7.6%.


Return on Equity

High ROE: ZKIN's Return on Equity (17.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ZK International Group's financial position?


Financial Position Analysis

Short Term Liabilities: ZKIN's short term assets ($63.6M) exceed its short term liabilities ($34.9M).

Long Term Liabilities: ZKIN has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ZKIN's debt to equity ratio (46.5%) is considered high.

Reducing Debt: Insufficient data to determine if ZKIN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ZKIN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ZKIN's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet

Inventory Level: ZKIN has a high level of physical assets or inventory.

Debt Coverage by Assets: ZKIN's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is ZK International Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ZKIN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ZKIN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ZKIN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZKIN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZKIN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of ZK International Group's salary, the management and board of directors tenure and is there insider trading?

US$73k

CEO Compensation


CEO

Jiancong Huang (54yo)

0yrs

Tenure

US$73,393

Compensation

Mr. Jiancong Huang is the Co-Founder, Chairman of the Board and Chief Executive Officer of ZK International Group Co., Ltd. 


CEO Compensation Analysis

Compensation vs Market: Jiancong's total compensation ($USD73.39K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Jiancong's compensation has been consistent with company performance over the past year.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.8%.


Management Team

  • Jiancong Huang (54yo)

    Co-Founder

    • Compensation: US$73.39k
  • Guolin Wang (48yo)

    Co-Founder & Director

    • Shaochai Yang (39yo)

      Chief Financial Officer

      • Compensation: US$19.46k
    • Di Chen (29yo)

      Secretary

      • Compensation: US$10.57k

    Board Members

    • Jiancong Huang (54yo)

      Co-Founder

      • Compensation: US$73.39k
    • Guolin Wang (48yo)

      Co-Founder & Director

      • Min Ni (44yo)

        Independent Director

        • Lie Cao (42yo)

          Independent Director

          • Linge Zhou (41yo)

            Independent Director

            Company Information

            ZK International Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: ZK International Group Co., Ltd.
            • Ticker: ZKIN
            • Exchange: NasdaqCM
            • Founded: 2015
            • Industry: Steel
            • Sector: Materials
            • Market Cap: US$27.868m
            • Shares outstanding: 16.59m
            • Website: https://www.zkinternationalgroup.com

            Number of Employees


            Location

            • ZK International Group Co., Ltd.
            • No. 678 Dingxiang Road
            • Binhai Industrial Park
            • Wenzhou
            • Zhejiang Province
            • 325025
            • China

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            ZKINNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDSep 2017

            Biography

            ZK International Group Co., Ltd., through its subsidiaries, designs, produces, and sells double-press thin-walled stainless steel, carbon steel, and single-press tubes and fittings in the People’s Republic of China. The company offers steel strips, steel pipes, and light gauge stainless steel pipes, as well as pipe connections and fittings, such as couplings, adapters, unions, caps, plug pipes, elbows, three-way fittings, tees, cross, side-inlet elbows, wyes, reducers, bushings, pipe fasteners, and pipe flanges. It also provides copper strip, valve, light industry machinery and equipment, and other stainless steel products. The company’s 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. It offers its products under the Zhengkang trademark. The company also exports its products to Europe, Africa, and Southeast Asia. ZK International Group Co., Ltd. was founded in 2015 and is based in Wenzhou, the People’s Republic of China. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/21 01:40
            End of Day Share Price2020/01/17 00:00
            Earnings2019/03/31
            Annual Earnings2018/09/30


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.