| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 5/6 |
| Past Performance | 0/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
BZ Stock Overview
Kanzhun Limited operates an online recruitment platform, BOSS Zhipin in the People’s Republic of China.
Kanzhun Limited Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$22.17 |
| 52 Week High | US$43.22 |
| 52 Week Low | US$13.46 |
| Beta | 0 |
| 1 Month Change | -6.89% |
| 3 Month Change | 13.34% |
| 1 Year Change | -36.57% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -40.40% |
Recent News & Updates
Kanzhun Limited Strives For Growth Amid Myriad Risks
Kanzhun Limited went public in June 2021, raising approximately $912 million in a U.S. IPO. The firm operates a large online and mobile-centric recruiting platform in China. BZ has grown revenue and users but faces numerous regulatory and economic risks in China, combined with the potential for a stock delisting in the U.S. I'm on Hold for BZ until we gain clarity on these substantial uncertainties. A Quick Take On Kanzhun Limited Kanzhun Limited (BZ) went public in June 2021, raising approximately $912 million in gross proceeds from an IPO that was priced at $19.00 per ADS. The firm operates a large recruitment platform in China (Boss Zhipin) through its mobile application. Interested investors may view BZ's many uncertainties as a buying opportunity, but I'm more cautious as there are so many risks facing the company that are outside of its control. While management appears to be making the best of a cloudy situation, I'm on Hold for BZ until we gain more visibility into its future trajectory. Kanzhun Overview Beijing, China-based Kanzhun was founded to create its Boss Zhipin app which connects job seekers with employers looking for workers. Management is headed by founder, Chairman and CEO Mr. Peng Zhao, who was previously Chief Executive Officer of Quickerbuy, a service e-commerce company. The company's primary offerings include: Native mobile app Intelligent recommendations Direct chat capabilities The firm seeks to grow its two-sided platform by attracting job seekers via online marketing and businesses of all sizes. Notably, a majority of its enterprise users are not human resource managers, but what the firm calls 'bosses' looking for workers directly. Kanzhun's Market & Competition According to a 2019 market research report by iResearch Global, the market for online recruitment grew by a strong 31% in 2018, reaching over 9 billion Yuan in value. Since 2017, the industry has seen significant growth through the end of 2018. The main drivers for this expected growth are below is a chart showing the historical and estimated growth path of the number of employers participating in the online recruiting industry in China, though 2020: China Online Recruitment Industry (iResearch Global) Also, the market likely saw a substantial rise in activity as a result of the COVID-19 pandemic, as is evidenced by Kanzhun's extremely strong revenue growth during 2020, although recent lockdowns have hampered the company's growth. The company faces competition from niche vertical players, established headhunting firms, and professional networking websites that may have or develop online recruitment services. Kanzhun's Recent Financial Performance Total revenue by quarter has grown substantially, although unevenly in recent quarters due to COVID lockdowns and a user registration suspension period: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has grown but recently plateaued: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have been highly variable: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating income by quarter has also fluctuated greatly: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have reached breakeven or better in recent quarters: 5 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, BZ's stock price has fallen 32.5% vs. the U.S. S&P 500 index's drop of around 7.1%, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For Kanzhun Below is a table of relevant capitalization and valuation figures for the company: Measure Amount Enterprise Value $8,730,000,000 Market Capitalization $10,650,000,000 Enterprise Value / Sales [TTM] 12.02 Price / Sales [TTM] 11.97 Revenue Growth Rate [TTM] 88.08% Operating Cash Flow [TTM] $279,160,000 CapEx Ratio (Op C.F./CapEx) 6.81 Earnings Per Share (Fully Diluted) -$2.73 (Source - Seeking Alpha) The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory. BZ's most recent GAAP Rule of 40 calculation was 104% as of Q1 2022, so the firm has performed extremely well in this regard, per the table below: Rule of 40 - GAAP Calculation Recent Rev. Growth % 88% GAAP EBITDA % 16% Total 104% (Source - Seeking Alpha) Commentary On Kanzhun In its last earnings call (Source - Seeking Alpha), covering Q1 2022's results, management highlighted the growth in its Daily Active Users to a peak of 9.7 million, or 8.2% year-over-year. Also, the firm is seeking to expand its efforts to diversify its job listing and job seeker coverage into the blue-collar recruitment area in the manufacturing industry, which is quite large in China. Additionally, the company wants to expand its high-income 'gold collar' user and job listing base as another targeted growth area. As to its financial results, topline revenue grew 44% year-over-year, an impressive figure. Cost of revenue grew by 66% as the firm increased headcount, especially with security-related staff. Total operating costs increased 10% year-over-year, while sales and marketing costs dropped 16% due to a new user registration suspension period.
Kanzhun Weathers Covid Storm, Silent On Data Security Review
Kanzhun reported strong first quarter revenue growth but predicted it would record its first-ever revenue contraction in the second quarter due to Covid disruptions. No updates were provided on a government data security review that is reportedly nearing completion and has prevented the company from registering new users for nearly a year. Kanzhun’s customer metrics looked relatively strong for the first quarter, especially when one considers the ban on new customer registrations.
Kanzhun (NASDAQ:BZ) Shareholders Will Want The ROCE Trajectory To Continue
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a...
Shareholder Returns
| BZ | US Interactive Media and Services | US Market | |
|---|---|---|---|
| 7D | 9.7% | 4.6% | 3.6% |
| 1Y | -36.6% | -28.3% | -9.6% |
Return vs Industry: BZ underperformed the US Interactive Media and Services industry which returned -28.4% over the past year.
Return vs Market: BZ underperformed the US Market which returned -10.2% over the past year.
Price Volatility
| BZ volatility | |
|---|---|
| BZ Average Weekly Movement | 13.7% |
| Interactive Media and Services Industry Average Movement | 10.5% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: BZ is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.
Volatility Over Time: BZ's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2013 | 4,840 | Peng Zhao | https://ir.zhipin.com |
Kanzhun Limited operates an online recruitment platform, BOSS Zhipin in the People’s Republic of China. Its recruitment platform assists the recruitment process between job seekers and employers for enterprises, and corporations. The company was founded in 2013 and is headquartered in Beijing, the People’s Republic of China.
Kanzhun Limited Fundamentals Summary
| BZ fundamental statistics | |
|---|---|
| Market Cap | CN¥65.50b |
| Earnings (TTM) | -CN¥978.87m |
| Revenue (TTM) | CN¥4.61b |
14.2x
P/S Ratio-66.9x
P/E RatioIs BZ overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BZ income statement (TTM) | |
|---|---|
| Revenue | CN¥4.61b |
| Cost of Revenue | CN¥625.14m |
| Gross Profit | CN¥3.98b |
| Other Expenses | CN¥4.96b |
| Earnings | -CN¥978.87m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -2.24 |
| Gross Margin | 86.43% |
| Net Profit Margin | -21.24% |
| Debt/Equity Ratio | 0% |
How did BZ perform over the long term?
See historical performance and comparison