Latest Ratios: P/E Ratio -20.1x · EV/EBITDA N/A · ROE -4.6%. (2020–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Market Cap | $402M | $598M | $575M | $2.6B | — | — | — |
| Enterprise Value | $304M | $-67966662 | $-300028570 | $2.4B | — | — | — |
| P/E Ratio → | -20.06 | — | — | — | — | — | — |
| P/S Ratio | 0.30 | 0.07 | 0.07 | 0.30 | — | — | — |
| P/B Ratio | 0.93 | 0.20 | 0.19 | 0.82 | — | — | — |
| P/FCF | — | — | 3.94 | — | — | — | — |
| P/OCF | 319.41 | 69.93 | 2.51 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.01 | -0.03 | 0.27 | — | — | — |
| EV / EBITDA | — | — | -0.73 | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — |
| EV / FCF | — | — | -2.05 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 16.4% | 16.4% | 17.2% | 16.7% | 15.8% | 13.6% | 14.5% |
| Operating Margin | -2.4% | -2.4% | 3.9% | -4.6% | -8.2% | -14.5% | -8.5% |
| Net Profit Margin | -1.6% | -1.6% | -3.1% | -3.5% | -8.8% | -14.7% | -8.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| ROE | -4.6% | -4.6% | -8.5% | -9.5% | — | -458.3% | -12.3% |
| ROA | -2.1% | -2.1% | -3.8% | -4.3% | -11.5% | -19.5% | -7.2% |
| ROIC | -7.1% | -7.1% | 9.8% | -10.1% | — | — | -17.6% |
| ROCE | -6.7% | -6.7% | 10.2% | -11.9% | -23.3% | -36.7% | -11.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.15 | 0.15 | 0.18 | 0.26 | — | — | 0.13 |
| Debt / EBITDA | — | — | 1.33 | — | — | — | — |
| Net Debt / Equity | — | -0.23 | -0.28 | -0.08 | — | — | -0.51 |
| Net Debt / EBITDA | — | — | -2.12 | — | — | — | — |
| Debt / FCF | — | — | -5.99 | — | — | — | — |
| Interest Coverage | -11.25 | -11.25 | -17.83 | -14.75 | -6.77 | -102.27 | -96.42 |
Net cash position: cash ($1.1B) exceeds total debt ($427M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Current Ratio | 1.79 | 1.79 | 1.85 | 1.73 | 1.80 | 1.56 | 2.45 |
| Quick Ratio | 1.60 | 1.60 | 1.67 | 1.56 | 1.62 | 1.33 | 2.24 |
| Cash Ratio | 0.56 | 0.56 | 0.59 | 0.49 | 0.56 | 0.16 | 0.98 |
| Asset Turnover | — | 1.38 | 1.33 | 1.18 | 1.22 | 1.29 | 0.84 |
| Inventory Turnover | 11.21 | 11.21 | 11.59 | 10.87 | 10.67 | 8.67 | 8.94 |
| Days Sales Outstanding | — | 136.96 | 139.73 | 167.11 | 148.27 | 150.61 | 152.23 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — |
| FCF Yield | — | — | 25.4% | — | — | — | — |
| Buyback Yield | 1.5% | 6.7% | 7.1% | 0.0% | — | — | — |
| Total Shareholder Yield | 1.5% | 6.7% | 7.1% | 0.0% | — | — | — |
| Shares Outstanding | — | $162M | $164M | $162M | $151M | $139M | $129M |
Industrial demand cyclicality
Based on current market data, ZKH trades at a P/S multiple of 0.28, which significantly trails established global MRO peers like Fastenal and Grainger, suggesting that investors are heavily discounting the company's valuation due to its persistent inability to generate positive net income in the current cycle.
The forward P/E of 4.68 implies that the market is pricing in a very low expectation for near-term earnings growth, likely reflecting skepticism regarding the company's ability to scale its 3P marketplace model. This valuation gap compared to US-based peers is structural, as the market demands a higher risk premium for ZKH's negative operating margins and exposure to the cooling Chinese industrial sector.
As reported in recent financial statements, ZKH's ROIC has remained consistently negative, reaching -2.3% in 2025Q2, which indicates that the company is currently destroying shareholder value rather than compounding it through its heavy investments in regional distribution infrastructure and digital supply chain integration.
The persistent negative ROIC suggests that the returns generated from the company's asset base are insufficient to cover the cost of capital, a trend that warrants further investigation into the productivity of its physical micro-warehouses. Without a pivot toward higher-margin 3P revenue, the company may continue to struggle to achieve the positive return thresholds expected by institutional investors.
According to quarterly filings, ZKH's cash conversion cycle stood at 48 days in 2025Q2, driven by a high DSO of 128 days, which highlights the significant leverage that large-scale manufacturing customers exert over the company's payment terms and overall working capital efficiency.
The elevated DSO relative to industry norms suggests that ZKH is effectively acting as a financing arm for its industrial clients, which ties up liquidity that could otherwise be deployed for R&D or market expansion. Investors should monitor whether the company can tighten these credit terms as it matures, as the current cycle indicates a structural reliance on extended receivables to maintain customer relationships.
Based on the 2025Q2 balance sheet, ZKH maintains a current ratio of 1.90 and a quick ratio of 1.66, providing a robust liquidity cushion that appears sufficient to fund ongoing operations despite the company's persistent negative free cash flow and lack of immediate profitability.
The company's ability to maintain these liquidity ratios while navigating a cooling industrial environment suggests a disciplined approach to cash management following its public listing. However, this liquidity is largely dependent on the $1.09 billion cash position, and any sustained increase in the cash burn rate could necessitate a re-evaluation of the company's long-term financial flexibility.
The most commonly misapplied metric for ZKH is the traditional P/E ratio, which obscures the company's true economic potential by failing to account for the heavy upfront investment in digital infrastructure and physical fulfillment hardware that characterizes its unique 'SaaS-plus-hardware' industrial distribution business model.
Using P/E to evaluate ZKH is misleading because it ignores the significant non-cash expenses and growth-stage investments that currently depress reported earnings. Analysts should instead focus on GMV growth and the take rate of the 3P marketplace, as these metrics better capture the underlying platform authority and the potential for future margin expansion that traditional retail multiples fail to reflect.
Includes 30+ ratios · 6 years · Updated daily
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Quick answers to the most common questions about buying ZKH stock.
ZKH Group Limited's current P/E ratio is -20.1x. This places it at the 50th percentile of its historical range.
ZKH Group Limited's return on equity (ROE) is -4.6%. The historical average is -98.6%.
Based on historical data, ZKH Group Limited is trading at a P/E of -20.1x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
ZKH Group Limited has 16.4% gross margin and -2.4% operating margin.