Shengfeng Development Limited (SFWL)
Valuation Overview•Is Shengfeng Development Limited Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 44/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
SFWL struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is driving exceptional top-line expansion (15.6% 3Y CAGR) paired with robust earnings compounding (14.0% EPS 3Y CAGR). However, profitability remains a major concern with severely compressed operating margins (2.9%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $309.0M | +13.6% | +15.6% | +14.8% | — | |
| EBITDA | $15.0M | — | +1.9% | — | — | |
| Net Income | $6.1M | +9.6% | +15.3% | — | — | |
| EPS (Diluted) | $0.07 | +7.7% | +14.0% | +13.6% | — | |
| Free Cash Flow | $19.5M | +87.8% | -108.4% | +12.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 9.2% | 9.9% | 10.6% | 11.1% |
| Operating Margin | 2.9% | 3.1% | 2.9% | 2.5% |
| Net Margin | 2.1% | 2.3% | 2.2% | 2.0% |
| FCF Margin | -2.5% | -1.4% | -1.4% | -1.6% |
Total return is -8.2% (1Y), lagging the benchmark by -29.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -9.8% | -17.2% | — |
| 1Y | -8.2% | -29.1% | — |
| 3YCAGR | -55.7% | -67.7% | — |
| 5YCAGR | -26.4% | -35.7% | — |
| 10YCAGR | -14.2% | -26.6% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Shengfeng Development Limited (SFWL) valuation, health, and returns.
Based on peer relative multiples, Shengfeng Development Limited appears Cheap versus peers compared to industry peers.
Shengfeng Development Limited has multiple valuation anchors: Peer Relative Fair Value: $5.14. A convergence of these signals offers higher conviction.
Shengfeng Development Limited displays fair financial health with a composite quality score of 44/100, supported by a Altman Z-Score of 3.7 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 6.9%.
Shengfeng Development Limited does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Shengfeng Development Limited's current growth trajectory is Decelerating. The company achieved +13.6% 1Y revenue growth and +7.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +15.6%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Shengfeng Development Limited include: -38.4% 1-year max drawdown. Volatility risk is characterized by a beta of -0.17x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.