ZKH Group (ZKH) Fair Value & Analysis

Consumer Cyclical · US · Market cap $373M

A solid business, screening 33% undervalued on our models.

What matters now

• The price is below even our cautious bear case ($3.29). The market is more pessimistic than our downside scenario.
• Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (3 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 7, 2026.

How to read this chart

32‑month range $2.06 – $20.52 · fair‑value band $3.29 – $5.05 · the $2.85 price screens below the $3.78 fair value. Dashed = 300-day average. As of Jul 7, 2026.

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Analysis

ZKH Group (ZKH) currently trades at $2.85, while our model-based Fair Value estimate is $3.78, implying the stock looks roughly 32.6% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, ZKH Group generated revenue of $9.2B at a net margin of -0.9%. Revenue grew 9.2% year over year. It earns a return on equity of -2.8%. The balance sheet holds a net cash position of $875M. Fundamentals as of Jul 7, 2026

Our scenario range runs from $3.29 (bear case) to $5.05 (bull case); at $2.85, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 27% below its 52-week high and 30% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -49% fair-value upside, at 33%, ZKH screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples ($50.10) versus Asset-Based ($16.01). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People's Republic of China.

Full company description

ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People's Republic of China. It offers equipment parts, including pump valve fittings, low voltage electrical, electric automation, wire and cable, fastening seal, pneumatics and hydraulics, and instrumentation products; chemicals, such as workshop chemicals, chemical reagents, lubricants, and adhesives, as well as paint and painting supplies; and manufacturing parts comprising cutting tool, air compressor, electronic vending machine, factory automation, and abrasive measuring tool products. The company also provides general consumables, including security-related, material handling, power transmission, personal protective equipment, welding, tape and label, cleaning supply, laboratory instrument consumable, and hardware and hand tool products; and office supply, furniture, fringe, lightening, refrigeration and heating, ventilating, air conditioning, and building material products. In addition, it offers MRO procurement and management services; AI-powered MRO procurement solutions; and logistics and warehousing services. Further, the company engages in the production and sale of intelligent warehousing equipment. ZKH Group Limited was founded in 1998 and is headquartered in Shanghai, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ZKH Group reported revenue of $8.8B in FY2025 versus $7.7B in FY2021, a compound +3.4%/yr. Reported net income was −$268M in FY2025.

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Peer Group

Internet Retail · 109 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Internet Retail median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.