One-glance verdict
Undervalued
$21.17 our estimate vs market $3.55
83% below our estimate, below the bear case
Fundamentals snapshot
Shengfeng Development Limited
SFWL · NCM · Industrials · Integrated Freight & Logistics
Current price
$3.55
52-week range
$3.16 - $17.70
Market cap
$19.52M
Balance sheet
Watch
6.17x Adequate
Net debt $76.22M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 13.6% last year.
- Reward Returns 9.1% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 1/10 years.
- Risk Net debt grew 11.1% over 3 years.
What this company does
Shengfeng Development Limited
Shengfeng Development Limited offers contract logistics services in China, essentially helping other businesses move and store their goods through services like trucking and warehousing. Their main income comes from these transportation and storage solutions, which are crucial for companies that need to manage their supply chain (the entire process of getting a product from its origin to the customer). This means Shengfeng plays a vital role in making sure products reach their destinations efficiently, impacting how smoothly other businesses can operate and sell their items.
How the company got here
Shengfeng Development Limited was founded in 2001 in Fuzhou, China, with the goal of helping businesses manage their storage and delivery needs. Over the years, it has grown into a significant player in China's contract logistics sector. The company has built an extensive network across the country, enabling it to serve a wide range of clients. Shengfeng's strategy has focused on providing integrated logistics solutions, combining various services to meet the complex demands of modern supply chains. This approach has allowed them to establish strong relationships with numerous manufacturers and trading companies.
What it actually does
Shengfeng Development Limited is a company that helps other businesses move and store their goods. Think of it like a behind-the-scenes helper for companies that sell products. They offer services that make sure products get from where they are made to where they need to be, and that they are stored safely in the meantime. This includes everything from transporting large shipments to managing inventory in warehouses. They work with a variety of industries, from manufacturing to e-commerce, ensuring that goods are handled efficiently throughout the supply chain.
B2B freight transportation services
This part of Shengfeng's business is all about moving goods for other businesses. It includes services like 'full truckload' (where a whole truck is used for one customer's shipment) and 'less than truckload' (where a customer's shipment shares space on a truck with other shipments). Essentially, they are the trucking company for businesses that need to transport their products from one place to another within China. This is a core part of their operations, ensuring timely and efficient delivery of goods.
Cloud storage services
This segment focuses on managing goods once they arrive at a warehouse. It's more than just storing items; it involves a range of activities to keep inventory organized and ready for distribution. Services include 'warehouse management' (keeping track of what's where), 'pick and pack' (finding and preparing specific items for orders), and 'order fulfillment' (getting the right products to the right customers). They also offer 'inventory optimization management,' which means using smart methods to ensure businesses have the right amount of stock without holding too much or too little.
Value-added services
These are extra services that Shengfeng offers to make the logistics process smoother for their clients. Examples include 'collection on delivery' (collecting payment when a product is delivered), 'customs declaration' (handling paperwork for goods crossing borders, though the provided text focuses on domestic services), and 'shipment protection' (ensuring goods are safe during transit). They also provide services like packaging and 'pay-at-arrival,' which is similar to cash on delivery. These services add convenience and security for businesses using Shengfeng's logistics network.
What management is betting on now
Shengfeng's management is focused on growing the company's presence and capabilities within China's logistics market. Their strategy involves expanding their market share, meaning they aim to handle a larger portion of the logistics needs for businesses in China. They are also looking to broaden their service offerings, which means adding more types of logistics solutions to their portfolio. A key part of this is further strengthening their transportation networks across the country, ensuring they can reach more locations efficiently. The ultimate goal is to become a leading provider of contract logistics services in China.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-14.46M
FY2025 Q4
$-2.88M
Revenue
$572.48M
Net income
$11.93M
Diluted EPS
—
Operating cash flow
$16.10M
Free cash flow
$-2.88M
Fetching…
Sources
Revenue
$504.16M
Net income
$10.88M
Diluted EPS
—
Operating cash flow
$15.01M
Free cash flow
$-14.46M
Fetching…
Sources
Is it cheap or expensive?
Fair value $21.17 vs current price $3.55
Our most-likely fair value is $21.17 a share — about 496.4% above today's price of $3.55, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $76.2M. Interest coverage 6.2x.
Net debt
$76.22M
Interest coverage
6.17x
Shengfeng Development Limited's profit covers its interest bill about 6.2 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
SFWL
BASELINE
Shengfeng Development Limited
Total debt $93.12M Interest coverage 6.17x This is the baseline the peer rows are being compared against.
Total debt $328.61M Interest coverage -4.56x -100% vs SFWL This peer has almost no interest-payment cushion compared with SFWL.
Total debt $82.40M Interest coverage -1.18x -100% vs SFWL This peer has almost no interest-payment cushion compared with SFWL.
Total debt $6.89M Interest coverage -3.21x -100% vs SFWL This peer has almost no interest-payment cushion compared with SFWL.
Total debt $11.67M Interest coverage 28.86x +368% vs SFWL Carries about 4.7x more debt cushion than SFWL.
Total debt $80.28M Interest coverage 7.95x +29% vs SFWL Carries about 1.3x more debt cushion than SFWL.
What you should know
The case for and against SFWL
3 Rewards
1 Risk
Rewards
-
Revenue grew 13.6% last year.
-
Returns 9.1% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 1/10 years.
Risks
-
Net debt grew 11.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
1.45x
Forward P/E
—
P/B
0.14x
P/S
0.03x
EV/EBITDA
4.12x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
9.0%
Operating margin
2.9%
Net margin
2.0%
ROE
9.1%
ROA
3.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.62x
Current ratio
1.32x
Quick ratio
1.14x
Total debt
$93.12M
Total cash
$16.89M
Growth
How the business has been compounding
Revenue TTM
$1.85B
Revenue 5Y CAGR
13.4%
EPS TTM
2.44
EPS 5Y CAGR
14.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$50.15M
Free CF TTM
$-2.88M
FCF margin
-0.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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