ZJK Industrial Co. Ltd. Class A Ordinary Shares (ZJK) fair value
Industrials · Tools & Accessories · NASDAQ · United States
$1.69-3.40%
Market cap $109MNext earnings 2026-09-21Updated Oct 19, 2026
Our verdict
Trades 54% below our fair value
Price
$1.69
Model fair valueConfidence: good
$3.65
Model range
$1.50 to $6.56
Fair value $3.65
Price $1.69
3 models fit ZJK Industrial Co. Ltd. Class A Ordinary Shares and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)Bronze51
Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionZJK Industrial Co. Ltd. Class A Ordinary Shares (ZJK)
Fair value (3 models)
$3.65
ACCE price target
$1.90
Rating
Undervalued
Horizon
12 months
Fair value published on 19 Oct 2026, 18:04 CEST; previously $3.79 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 18:04 CEST.
Price used: $1.69 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
53.7% below
+116.2% to fair value
ACCE score
53
out of 100
P/E
12.1x
1-year return
-38.3%
Dividend yield
0.00%
ZJK Industrial Co. Ltd. Class A Ordinary Shares in four questions
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Overview
ACCE thesis
ZJK Industrial makes hand tools and accessories, a category where a small Chinese supplier competes mainly on price, consistency and speed of delivery to overseas distributors. What separates it from most peers in its size band is the economics: a 40.6% gross margin and 16.8% operating margin are high for a tools maker, and a 21.5% ROE suggests the business earns well on the capital it uses. Revenue grew 36.6% in the most recent year, which is the main reason to look closer, though we have not yet tested how much of that is organic volume versus new product lines or acquisitions. At a trailing P/E of 13.1 the stock is not expensive against that growth, but the forward P/E figure in our data is zero and should be treated as missing rather than as a signal. The name carries no index membership, so liquidity and ownership depth are the first things to check before any position could be sized, and the 118M USD market cap places it firmly in micro-cap territory.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings falling despite revenue growth
Revenue grew 36.6% year on year while earnings fell 15.9%, so the extra sales are not converting to profit. Net margin of 14.7% should be checked against prior periods.
moderate
Score down six points in 90 days
The ACCE score slipped from 59 to 53 over 90 days, with momentum scoring just 17 of 100, signalling weakening price and trend support.
moderate
Very high insider ownership
Insiders hold 72.1% of shares while institutions hold only 0.2%, leaving a thin shareholder base where a few holders control the register and free float is small.
AI research notes
AI-assisted·How I use AIWritten Oct 18, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 36.6% over the last year, and has averaged 33.8% growth per year across five years.
A 14.7% net margin and 21.5% return on equity show the business turns sales into profit efficiently.
The consensus model fair value sits at $3.65, and the stock trades 53.7% below it.
Why it could disappoint
Free cash flow of $901,199 over the last twelve months gives a yield of only 0.8% at today's price.
The trailing P/E of 12.7x sits well under the sector median forward P/E of 24.0x, which may reflect doubts about earnings durability.
Diluted share count rose 1.4% last fiscal year, so each share owns a slightly smaller slice of the company.
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Valuation
INVESTOR
Where ZJK's valuation models land
Price
$1.69
Model fair value
$3.65
Model range
$1.50 to $6.56
Fair value $3.65
Price $1.69
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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Quality
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