ScoreWhy is Zkteco Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 0.49% and Operating profit at -4.11% over the last 5 years
2
Flat results in Mar 25
- INTEREST(9M) At CNY 3.18 MM has Grown at 16.63%
- INTEREST COVERAGE RATIO(Q) Lowest at 2,645.33
- OPERATING PROFIT(Q) Lowest at CNY 23.46 MM
3
With ROE of 6.26%, it has a very attractive valuation with a 0.95 Price to Book Value
- Over the past year, while the stock has generated a return of 30.53%, its profits have risen by 23.1% ; the PEG ratio of the company is 5.9
4
Market Beating Performance
- The stock has generated a return of 30.53% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Zkteco Co., Ltd. should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zkteco Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Zkteco Co., Ltd.
9.85%
1.23
52.35%
China Shanghai Composite
12.36%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.49%
EBIT Growth (5y)
-4.11%
EBIT to Interest (avg)
66.98
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.54
Sales to Capital Employed (avg)
0.56
Tax Ratio
9.17%
Dividend Payout Ratio
43.89%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.23%
ROE (avg)
7.96%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
0.95
EV to EBIT
8.40
EV to EBITDA
5.85
EV to Capital Employed
0.89
EV to Sales
0.72
PEG Ratio
5.90
Dividend Yield
NA
ROCE (Latest)
10.62%
ROE (Latest)
6.26%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 295.62 MM
RAW MATERIAL COST(Y)
Fallen by -10.16% (YoY
-7What is not working for the Company
INTEREST(9M)
At CNY 3.18 MM has Grown at 16.63%
INTEREST COVERAGE RATIO(Q)
Lowest at 2,645.33
OPERATING PROFIT(Q)
Lowest at CNY 23.46 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.74 %
Here's what is working for Zkteco Co., Ltd.
Operating Cash Flow
Highest at CNY 295.62 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Raw Material Cost
Fallen by -10.16% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Zkteco Co., Ltd.
Interest
At CNY 3.18 MM has Grown at 16.63%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Interest Coverage Ratio
Lowest at 2,645.33
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 23.46 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 5.74 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
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