Revenue grew 11.6% year-over-year to $309.0M in 2025Q4, yet gross margins have compressed significantly from 12.3% in 2021 to 9.4% in the most recent quarter.
| Sales/Revenue | 572.48M | 504.16M | 404.12M | 370.32M | 346.7M | 287.46M | 232.61M |
| Revenue Growth % | 13.55% | 24.75% | 9.13% | 6.81% | 20.61% | 23.58% | - |
| Cost of Goods Sold | 520.19M | 457.87M | 357.62M | 328.79M | 305.35M | 251.49M | 203.78M |
| COGS % of Revenue | 90.87% | 90.82% | 88.49% | 88.78% | 88.07% | 87.49% | 87.61% |
| Gross Profit | 52.29M | 46.28M | 46.51M | 41.53M | 41.34M | 35.98M | 28.83M |
| Gross Margin % | 9.13% | 9.18% | 11.51% | 11.21% | 11.93% | 12.51% | 12.39% |
| Gross Profit Growth % | 12.97% | -0.48% | 11.98% | 0.45% | 14.93% | 24.8% | - |
| Operating Expenses | 35.41M | 31.62M | 32.6M | 31.69M | 32.76M | 29.77M | 26.29M |
| OpEx % of Revenue | 6.19% | 6.27% | 8.07% | 8.56% | 9.45% | 10.36% | 11.3% |
| Selling, General & Admin | 36.21M | 31.62M | 32.6M | 31.69M | 32.76M | 29.77M | 26.29M |
| SG&A % of Revenue | 6.32% | 6.27% | 8.07% | 8.56% | 9.45% | 10.36% | 11.3% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | -800K | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 16.88M | 14.67M | 13.91M | 9.85M | 8.59M | 6.2M | 2.54M |
| Operating Margin % | 2.95% | 2.91% | 3.44% | 2.66% | 2.48% | 2.16% | 1.09% |
| Operating Income Growth % | 15.1% | 5.47% | 41.23% | 14.66% | 38.41% | 144.06% | - |
| EBITDA | 28.05M | 27.56M | 29.1M | 26.5M | 22.95M | 18.65M | 14.39M |
| EBITDA Margin % | 4.9% | 5.47% | 7.2% | 7.16% | 6.62% | 6.49% | 6.19% |
| EBITDA Growth % | 1.78% | -5.29% | 9.81% | 15.48% | 23.04% | 29.64% | - |
| D&A (Non-Cash Add-back) | 11.17M | 12.9M | 15.2M | 16.66M | 14.36M | 12.45M | 11.85M |
| EBIT | 16.88M | 14.46M | 14.4M | 11.65M | 10.48M | 9.6M | 3.51M |
| Net Interest Income | -2.48M | -1.81M | -1.65M | -953K | -985K | -661K | -1.24M |
| Interest Income | 255K | 159K | 126K | 1.27M | 1.33M | 1.33M | 52K |
| Interest Expense | 2.74M | 1.97M | 1.77M | 2.23M | 2.31M | 1.99M | 1.29M |
| Other Income/Expense | -2.62M | -2.17M | -1.28M | -421K | -426K | 1.41M | -321K |
| Pretax Income | 14.26M | 12.49M | 12.63M | 9.43M | 8.16M | 7.61M | 2.22M |
| Pretax Margin % | 2.49% | 2.48% | 3.12% | 2.55% | 2.35% | 2.65% | 0.95% |
| Income Tax | 2.05M | 1.67M | 2.32M | 1.6M | 1.52M | 1.57M | 293K |
| Effective Tax Rate % | 14.36% | 13.34% | 18.37% | 16.97% | 18.59% | 20.62% | 13.19% |
| Net Income | 11.93M | 10.88M | 10.29M | 7.79M | 6.9M | 6.09M | 1.91M |
| Net Margin % | 2.08% | 2.16% | 2.55% | 2.1% | 1.99% | 2.12% | 0.82% |
| Net Income Growth % | 9.63% | 5.67% | 32.19% | 12.89% | 13.25% | 218.9% | - |
| Net Income (Continuing) | 12.21M | 10.83M | 10.31M | 7.83M | 6.64M | 6.04M | 1.93M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 6.95M | 6.3M | 4.37M | 3.86M | 4.3M | 1.76M | 1.54M |
| EPS (Diluted) | 0.14 | 0.13 | 0.13 | 0.09 | 0.08 | 0.07 | 0.02 |
| EPS Growth % | 7.69% | 0% | 37.57% | 12.9% | 13.26% | 218.53% | - |
| EPS (Basic) | 0.14 | 0.13 | 0.13 | 0.09 | 0.08 | 0.07 | 0.02 |
| Diluted Shares Outstanding | 82.5M | 82.5M | 81.81M | 82.4M | 82.4M | 82.4M | 82.4M |
| Basic Shares Outstanding | 82.5M | 82.5M | 81.81M | 82.4M | 82.4M | 82.4M | 82.4M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Margin compression from competition
According to the latest quarterly filings, SFWL achieved a 11.6% year-over-year revenue increase to $309.0M, reflecting consistent demand for its B2B logistics services, although the growth rate has moderated from the 26.4% peak observed in late 2024, suggesting a potential cooling in regional industrial activity.
The company's ability to sustain double-digit top-line growth appears tied to its specialized industrial service model rather than broad market expansion. Investors should monitor whether this growth is organic or driven by aggressive pricing, as the deceleration in growth rates may indicate that the company is reaching a saturation point within its core Fujian regional hub.
As reported in financial statements, SFWL's gross margin has compressed from 12.3% in 2021 to 9.4% in 2025Q4, highlighting the company's limited pricing power and its role as a high-variable-cost pass-through entity within the fragmented Chinese freight and logistics market.
The persistent inability to maintain gross margins above the 10% threshold suggests that the company lacks the scale or technological differentiation to offset rising fuel and third-party transportation costs. This structural weakness implies that any inflationary pressure on input costs will likely flow directly to the bottom line, further eroding already thin profitability.
Based on the provided income statement data, operating income has failed to scale meaningfully with revenue, remaining stagnant at approximately 2.9% of total sales, which indicates that the company's fixed cost base is growing in lockstep with its top-line expansion efforts.
The lack of operating leverage suggests that the company's administrative and facility-related expenses are not benefiting from economies of scale. This trend warrants further investigation into whether management's investments in cloud storage and value-added services are yielding the expected efficiency gains or simply adding to the fixed cost burden.
Data from recent periods indicates that SFWL operates with a razor-thin 2.0% net margin, leaving the company highly vulnerable to even minor operational disruptions or competitive price wars, as evidenced by the volatility in quarterly earnings per share over the last ten reporting periods.
Short-sellers may focus on the company's inability to expand net margins despite revenue growth, which suggests that the business model may be fundamentally unsustainable in a competitive environment. The reliance on low-margin B2B freight makes the company an easy target for larger, more automated competitors who can leverage superior scale to undercut SFWL's pricing.
Quick answers to the most common questions about buying SFWL stock.
For fiscal year 2025, Shengfeng Development Limited (SFWL) reported total revenue of $572.5M. This represents a 146.1% increase compared to $232.6M in 2019.
Shengfeng Development Limited (SFWL) is profitable, generating $11.9M in net income for the fiscal year ending 2025 with a net profit margin of 2.1%.
Shengfeng Development Limited (SFWL) reported an operating income of $16.9M, resulting in an operating profit margin of 2.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Shengfeng Development Limited (SFWL) generated $52.3M in gross profit for the year, representing a gross profit margin of 9.1%. This demonstrates the company's core pricing power and production efficiency.