ZKH Group Return On Asset vs. Profit Margin

ZKH Stock   3.59  0.06  1.64%   
Considering ZKH Group's profitability and operating efficiency indicators, ZKH Group Limited may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess ZKH Group's ability to earn profits and add value for shareholders. The ZKH Group's current Sales General And Administrative To Revenue is estimated to increase to 0.08, while Price To Sales Ratio is projected to decrease to 0.17. As of now, ZKH Group's Income Tax Expense is decreasing as compared to previous years. The ZKH Group's current Change To Netincome is estimated to increase to about 194.1 M, while Accumulated Other Comprehensive Income is projected to decrease to (18.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.120.1665
Way Down
Very volatile
For ZKH Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ZKH Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ZKH Group Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ZKH Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ZKH Group Limited over time as well as its relative position and ranking within its peers.
  
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Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ZKH Group. If investors know ZKH will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ZKH Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.45)
Revenue Per Share
82.533
Quarterly Revenue Growth
0.085
Return On Assets
(0.04)
Return On Equity
(0.18)
The market value of ZKH Group Limited is measured differently than its book value, which is the value of ZKH that is recorded on the company's balance sheet. Investors also form their own opinion of ZKH Group's value that differs from its market value or its book value, called intrinsic value, which is ZKH Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ZKH Group's market value can be influenced by many factors that don't directly affect ZKH Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ZKH Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if ZKH Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ZKH Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

ZKH Group Limited Profit Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ZKH Group's current stock value. Our valuation model uses many indicators to compare ZKH Group value to that of its competitors to determine the firm's financial worth.
ZKH Group Limited is rated fifth in return on asset category among its peers. It is rated fifth in profit margin category among its peers . As of now, ZKH Group's Net Loss is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the ZKH Group's earnings, one of the primary drivers of an investment's value.

ZKH Profit Margin vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

ZKH Group

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.043
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

ZKH Group

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.03) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

ZKH Profit Margin Comparison

ZKH Group is currently under evaluation in profit margin category among its peers.

ZKH Group Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ZKH Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ZKH Group will eventually generate negative long term returns. The profitability progress is the general direction of ZKH Group's change in net profit over the period of time. It can combine multiple indicators of ZKH Group, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-17.2 M-18.1 M
Net Interest Income30.9 M32.5 M
Interest Income61.8 M64.8 M
Operating Income-458.5 M-481.5 M
Net Loss-350.6 M-368.2 M
Income Before Tax-350.4 M-367.9 M
Total Other Income Expense Net94 M98.7 M
Net Loss-1.1 B-1.2 B
Net Loss-304.3 M-319.5 M
Income Tax Expense175.5 K325.3 K
Change To Netincome166.8 M194.1 M
Net Loss(22.08)(23.19)
Income Quality 1.87  1.96 
Net Income Per E B T 1.00  1.52 

ZKH Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on ZKH Group. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ZKH Group position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ZKH Group's important profitability drivers and their relationship over time.

Use ZKH Group in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ZKH Group position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ZKH Group will appreciate offsetting losses from the drop in the long position's value.

ZKH Group Pair Trading

ZKH Group Limited Pair Trading Analysis

The ability to find closely correlated positions to ZKH Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ZKH Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ZKH Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ZKH Group Limited to buy it.
The correlation of ZKH Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ZKH Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ZKH Group Limited moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ZKH Group can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your ZKH Group position

In addition to having ZKH Group in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Aircraft
Aircraft Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Aircraft theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aircraft Theme or any other thematic opportunities.
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When determining whether ZKH Group Limited offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of ZKH Group's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Zkh Group Limited Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Zkh Group Limited Stock:
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You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
To fully project ZKH Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ZKH Group Limited at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ZKH Group's income statement, its balance sheet, and the statement of cash flows.
Potential ZKH Group investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although ZKH Group investors may work on each financial statement separately, they are all related. The changes in ZKH Group's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ZKH Group's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.