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Shengfeng Development Limited Class A (SFWL)
:SFWL
US Market

Shengfeng Development Limited Class A (SFWL) AI Stock Analysis

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Shengfeng Development Limited Class A

(NASDAQ:SFWL)

67Neutral
SFWL has strong financial performance with revenue growth and profitability, but liquidity concerns from negative free cash flow are a risk. Technical indicators show bearish momentum, and valuation is moderate with limited income prospects. The absence of earnings call insights limits future outlook visibility.

Shengfeng Development Limited Class A (SFWL) vs. S&P 500 (SPY)

Shengfeng Development Limited Class A Business Overview & Revenue Model

Company DescriptionShengfeng Development Limited, through its subsidiaries, provides contract logistics services in the People's Republic of China. The company offers business-to-business freight transportation services, such as full truckload and less than truckload; cloud storage services, including warehouse management, order fulfillment, delivery process management, in-warehouse processing, and inventory optimization management services; and value-added services comprising collection on delivery, delivery upstairs, packaging, pay-at-arrival, return proof of delivery, and shipment protection. It serves clients in various industries, including manufacturing, energy, telecommunications, internet, fashion, fast moving consumer goods, publishing, agriculture, and e-commerce. Shengfeng Development Limited was founded in 2001 and is based in Fuzhou, the People's Republic of China.
How the Company Makes MoneyShengfeng Development Limited Class A makes money primarily through its logistics and supply chain services. The company's revenue streams include fees charged for freight forwarding, which involves the transportation of goods by various modes such as air, sea, and land. Additionally, it generates income from warehousing services, providing storage solutions for businesses, and distribution services, which entail the delivery of goods to their final destination. Significant partnerships with shipping lines, airlines, and trucking companies enhance its service offerings and contribute to its revenue. By optimizing supply chain efficiencies and offering value-added services, Shengfeng Development Limited Class A secures a steady income stream from its diverse client base.

Shengfeng Development Limited Class A Financial Statement Overview

Summary
Shengfeng Development Limited Class A shows strong revenue growth and improving profitability with a balanced leverage approach. However, the negative free cash flow highlights liquidity challenges that need attention for long-term stability.
Income Statement
82
Very Positive
Shengfeng Development Limited Class A has shown consistent revenue growth over the years, with a notable increase from $370.3 million in 2022 to $404.1 million in 2023, representing a revenue growth rate of 9.12%. Gross profit margin improved to 11.51% in 2023, and the net profit margin increased to 2.55%, indicating enhanced operational efficiency. The EBIT margin stood at 3.44%, and the EBITDA margin was 7.32%, reflecting stable earnings before interest, taxes, depreciation, and amortization. Overall, the company demonstrates strong revenue growth and improving profitability.
Balance Sheet
75
Positive
The debt-to-equity ratio decreased to 0.57 in 2023, indicating a conservative approach to leveraging. The return on equity improved to 9.54%, showing effective use of equity to generate profits. The equity ratio of 40.61% suggests a stable financial structure with a moderate level of equity financing. Despite the improvements, maintaining a balanced leverage ratio remains crucial for future stability.
Cash Flow
68
Positive
The operating cash flow to net income ratio improved to 1.18 in 2023, illustrating a positive cash flow generation relative to profits. However, free cash flow remains negative at -$16.6 million, indicating ongoing capital expenditures outpacing cash inflows, which could pose liquidity challenges. The company needs to focus on enhancing free cash flow to ensure sustainable financial health.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
446.28M404.12M370.32M346.70M287.46M232.61M
Gross Profit
44.81M46.51M41.53M41.34M35.98M28.83M
EBIT
12.00M13.91M9.85M8.59M6.20M2.54M
EBITDA
25.95M29.60M28.31M24.84M22.05M15.36M
Net Income Common Stockholders
8.89M10.29M7.79M6.90M6.09M1.91M
Balance SheetCash, Cash Equivalents and Short-Term Investments
27.32M26.73M21.29M18.64M27.32M18.41M
Total Assets
232.18M265.84M245.26M244.21M232.18M177.10M
Total Debt
68.54M61.81M76.84M75.57M76.84M57.78M
Net Debt
41.23M35.09M55.56M56.92M49.52M39.37M
Total Liabilities
147.80M153.53M150.17M148.31M147.80M104.40M
Stockholders Equity
82.62M107.95M91.22M91.59M82.62M71.17M
Cash FlowFree Cash Flow
-54.05M-16.60M-318.00K-9.09M-5.61M-4.50M
Operating Cash Flow
-7.44M12.11M6.93M16.59M2.33M-722.00K
Investing Cash Flow
-28.18M-18.82M-6.71M-23.87M-7.82M-17.01M
Financing Cash Flow
18.11M13.19M6.05M-2.13M13.14M15.77M

Shengfeng Development Limited Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.02
Price Trends
50DMA
1.00
Positive
100DMA
1.07
Negative
200DMA
1.17
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
41.97
Neutral
STOCH
26.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFWL, the sentiment is Positive. The current price of 1.02 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 1.00, and below the 200-day MA of 1.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.97 is Neutral, neither overbought nor oversold. The STOCH value of 26.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFWL.

Shengfeng Development Limited Class A Risk Analysis

Shengfeng Development Limited Class A disclosed 70 risk factors in its most recent earnings report. Shengfeng Development Limited Class A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Shengfeng Development Limited Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$16.57B21.0435.12%1.19%13.98%14.29%
68
Neutral
$35.17B30.2027.90%0.63%-0.88%-2.79%
67
Neutral
$83.73M7.609.67%
67
Neutral
$9.45B27.4517.03%11.37%1.82%
65
Neutral
$14.97B26.9514.06%1.16%-5.79%-20.32%
62
Neutral
$8.08B13.633.82%3.13%3.58%-14.35%
KNKNX
61
Neutral
$7.09B60.331.66%1.51%3.76%-46.10%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SFWL
Shengfeng Development Limited Class A
1.00
-0.76
-43.18%
EXPD
Expeditors International
121.89
5.60
4.82%
JBHT
JB Hunt
152.78
-42.44
-21.74%
KNX
Knight Transportation
45.01
-8.62
-16.07%
ODFL
Old Dominion Freight
170.10
-48.50
-22.19%
SAIA
Saia
370.82
-207.55
-35.89%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.