MeritValue

ZK International Group Co., Ltd.

ZKINdata completeness 88%11 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

ZK International Group Co., Ltd. earns about -53% on invested capital, and has bought back 75% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$446,4801$496,7402$337,2163$22,6843$34,0273
Net income−$3.8M4−$6.08M5−$61.1M6−$2.78M6−$3.99M6
Operating cash flow−$3.48M7−$2.07M8−$1.91M9−$6.88M9$736,3979
Capital expenditure$114,31910$507,66311$656,17812$603,05412$588,55112
Free cash flow (derived)−$3.59M7−$2.58M8−$2.56M9−$7.48M9$147,8469
Total debt—————
Cash & equivalents$13.5M13$7.52M14$4.99M15$4.01M16$2.31M16
Diluted shares22.6M29.4M4.5M4.9M5.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$43.04
your share of equity
Profit it earned you last year
−$7
Free cash flow it threw off
$0.26
Debt you’d be carrying
—

10 shares is a claim on $43.04 of net worth that earned you −$7 and generated $0.26 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-53% avg · 5y
FY21 -3%FY22 -4%FY23 -237%FY24 -6%FY25 -14%

It earned an average -53% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−75% shares · 5y

Share count is down 75% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-09-30 · accession 0001410578-24-001331 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 20-F · period ending 2022-09-30 · accession 0001410578-25-000055 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2023-09-30 · accession 0001185185-26-000396 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 20-F · period ending 2021-09-30 · accession 0001410578-24-001331 (NetIncomeLoss)
  5. 20-F · period ending 2022-09-30 · accession 0001410578-25-000055 (NetIncomeLoss)
  6. 20-F · period ending 2023-09-30 · accession 0001185185-26-000396 (NetIncomeLoss)
  7. 20-F · period ending 2021-09-30 · accession 0001410578-24-001331 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-09-30 · accession 0001410578-25-000055 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-09-30 · accession 0001185185-26-000396 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-09-30 · accession 0001410578-24-001331 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-09-30 · accession 0001410578-25-000055 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-09-30 · accession 0001185185-26-000396 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-09-30 · accession 0001410578-23-000049 (CashAndCashEquivalentsAtCarryingValue)
  14. 20-F · period ending 2022-09-30 · accession 0001410578-24-001331 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2023-09-30 · accession 0001410578-25-000055 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2024-09-30 · accession 0001185185-26-000396 (CashAndCashEquivalentsAtCarryingValue)