ZKH
Consumer CyclicalZKH Group Limited · Specialty Retail · $420M
What is ZKH Group Limited?
ZKH Group Limited operates a digital maintenance, repair, and operating (MRO) procurement platform serving industrial buyers across China. The company connects businesses with spare parts, chemicals, and consumables through an integrated technology-driven supply chain.
ZKH generates revenue by facilitating MRO procurement for businesses that need industrial supplies without managing complex sourcing themselves. The platform offers digitalized procurement solutions, logistics, and warehousing services. ZKH also produces intelligent warehousing equipment, adding a hardware dimension to its primarily service-oriented model. Customers range from manufacturers to general enterprises seeking streamlined supply management.
Founded in 1998 and headquartered in Shanghai, China, ZKH Group listed publicly in 2023.
- MRO procurement and management services
- Digitalized procurement platform for industrial buyers
- Logistics and warehousing services
- Intelligent warehousing equipment
Is ZKH a Good Stock to Buy?
UQS Score rates ZKH as Below Average overall, reflecting meaningful weaknesses across several key pillars.
Among the five pillars, Valuation stands out as Attractive, suggesting the market may already be pricing in the company's challenges. Growth is rated Neutral, indicating the business is not in freefall but has yet to demonstrate consistent expansion momentum.
Quality, Moat, and Risk are all rated Weak — a combination that raises questions about the durability of ZKH's competitive position and the resilience of its financials under pressure.
Pro members can view the complete pillar breakdown and underlying financial metrics to form a more complete picture. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does ZKH pay dividends?
No — ZKH Group Limited does not currently pay a dividend.
ZKH Group does not currently pay a dividend. As a growth-oriented MRO platform operating in a competitive Chinese market, the company appears focused on reinvesting resources into platform development, logistics infrastructure, and technology rather than returning cash to shareholders.
When does ZKH report earnings?
ZKH Group reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
The company's Growth pillar is rated Neutral, suggesting results have been neither strongly positive nor sharply negative in recent periods. Investors should weigh the broader context of China's industrial sector when interpreting quarterly figures.
For the most recent quarter's results and guidance, visit ZKH Group's official investor relations page.
ZKH Price History
-81.3% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in ZKH Group Limited?
Based on ZKH Group Limited's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
ZKH Long-term Outlook
ZKH's fundamental outlook is shaped by a Neutral Growth profile alongside Weak Quality and Risk ratings. While the MRO digitalization opportunity in China remains large, execution risk is elevated. An Attractive Valuation label indicates the stock may reflect these concerns, but improving the underlying business quality would be necessary to shift the longer-term trajectory.
Growth drivers
- Ongoing digitalization of industrial procurement in China
- Expansion of logistics and warehousing capabilities
- Potential cross-selling of intelligent warehousing equipment to existing platform customers
Key risks
- Weak competitive moat in a fragmented MRO market with low switching costs
- Elevated operational and financial risk as reflected in the Weak Risk pillar
- Macroeconomic sensitivity tied to Chinese industrial activity and regulatory environment
ZKH vs Peers
ZKH operates in a niche corner of the Consumer Cyclical sector, and its listed peers span diverse e-commerce and retail models.
Jumia is an African-focused e-commerce marketplace, competing in emerging-market digital commerce but without ZKH's industrial MRO specialization.
Build-A-Bear is a US-based experiential retail brand targeting consumers, contrasting sharply with ZKH's B2B industrial procurement focus.
Kits Eyecare operates a Canadian direct-to-consumer eyewear platform, representing a different vertical of digitally-enabled product distribution.
Frequently Asked Questions
What does ZKH Group do?
ZKH Group operates a digital MRO procurement platform in China, helping businesses source spare parts, chemicals, manufacturing components, and general consumables. The company also provides logistics, warehousing services, and produces intelligent warehousing equipment.
Does ZKH pay dividends?
ZKH does not currently pay a dividend. The company appears to prioritize reinvestment into its platform and infrastructure over shareholder distributions, which is common for growth-stage technology-enabled businesses in competitive markets.
When does ZKH report earnings?
ZKH Group reports on a quarterly cadence, as is standard for US-listed companies. For exact dates and the most recent results, check ZKH Group's investor relations page directly.
Is ZKH a good stock to buy?
The UQS Score rates ZKH as Below Average, driven by Weak ratings in Quality, Moat, and Risk. While Valuation is Attractive, that alone does not offset the structural concerns. Pro members can access the full breakdown to weigh the trade-offs.
Is ZKH overvalued?
ZKH's Valuation pillar is rated Attractive, suggesting the stock is not considered expensive relative to its fundamentals. However, a low valuation can reflect genuine business challenges rather than a hidden opportunity — context from the other pillars matters.
How does ZKH compare to its competitors?
ZKH's listed peers — Jumia, Build-A-Bear, and Kits Eyecare — operate in different verticals and geographies, making direct comparison limited. ZKH's differentiation lies in its B2B industrial MRO focus within China's large manufacturing economy.
What is ZKH's market cap bracket?
ZKH Group is classified as a small-cap company. This means it carries higher volatility and liquidity risk compared to large- or mega-cap peers, which is a relevant consideration for risk-conscious investors.
Who founded ZKH Group?
ZKH Group was founded in 1998. Founding leadership details are publicly available through the company's official disclosures and investor relations materials for those seeking more background.
Is ZKH a long-term quality investment?
As a long-term quality indicator, ZKH's Below Average UQS Score — with Weak readings in Quality, Moat, and Risk — suggests the business has not yet demonstrated the durability typically associated with high-quality long-term holdings. The Growth pillar being Neutral leaves room for improvement.
What is the main competitive advantage of ZKH Group?
ZKH's platform integrates procurement, logistics, and warehousing into a single digitalized solution for industrial buyers in China. However, the Moat pillar is rated Weak, indicating this advantage may not yet be deeply entrenched against competitors.
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Pro Analysis
ZKH — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 4, 2026 | 37.1 | 9.2 | 12.0 | 57.4 | 35.7 | 100.0 | 0.0 |
| Apr 29, 2026 | 37.1 | 9.2 | 12.0 | 57.3 | 35.7 | 100.0 | 0.0 |
| Apr 19, 2026 | 37.1 | 9.2 | 12.0 | 57.5 | 35.7 | 100.0 | 0.0 |
| Apr 16, 2026 | 37.1 | 9.2 | 12.0 | 57.4 | 35.7 | 100.0 | 0.0 |
| Apr 15, 2026 | 37.1 | 9.2 | 12.0 | 57.3 | 35.7 | 100.0 | 0.0 |
| Apr 14, 2026 | 37.1 | 9.2 | 12.0 | 57.4 | 35.7 | 100.0 | 0.0 |
| Apr 13, 2026 | 37.1 | 9.2 | 12.0 | 57.5 | 35.7 | 100.0 | 0.0 |
| Apr 10, 2026 | 37.1 | 9.2 | 12.0 | 57.0 | 35.7 | 100.0 | +0.1 |
| Apr 5, 2026 | 37.0 | 9.2 | 12.0 | 56.6 | 35.7 | 100.0 | +0.1 |
| Apr 2, 2026 | 36.9 | 9.2 | 12.0 | 56.4 | 35.7 | 100.0 | — |
ZKH — Pillar Breakdown
Quality
— 9.2/100 (25%)ZKH Group Limited currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 57.8/100 (20%)ZKH Group Limited demonstrates healthy growth trends across revenue and earnings.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 36.1/100 (15%)ZKH Group Limited has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 100.0/100 (15%)ZKH Group Limited appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
P/E relative to earnings growth — lower is more attractive.
Moat
— 12/100 (25%)ZKH Group Limited operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ZKH.
Score Composition
Financial Data
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How is the ZKH UQS Score Calculated?
The UQS (Unified Quality Score) for ZKH Group Limited is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses ZKH Group Limited's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether ZKH Group Limited is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.