Shengkai Innovations

VALV

Industrial - Machinery · Industrials

Price

$0.00

+0.00 (+0.00%)

Market Cap

$1,720

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+29.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 14.0M (2008) → 18.1M (2012)

Shengkai Innovations, Inc. is a Chinese company that makes and sells industrial valves. Valves are mechanical devices that control the flow of liquids and gases through pipes. The company sells its products to customers in industries like oil and gas, chemicals, and power generation, primarily across China.

Shengkai earns money by manufacturing and distributing these valves directly to industrial buyers. The company is small, with a market cap close to zero, and operates almost entirely within China. Its gross margin of around 43% suggests some pricing power, but a very low operating margin and weak return on invested capital point to thin profitability after costs. The main risk the company faces is intense competition from larger, better-resourced valve manufacturers in China, along with limited scale that makes it difficult to grow earnings meaningfully or expand into new markets.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-47.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$830/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

5.8%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$66M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Shengkai Innovations's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

27.1%

Modest — 27.1% gross margin

Operating Margin

-49.5%

Losing money on operations — -49.5%

ROCE

-1.1%

Weak — -1.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

-74.0%

Shrinking sales (-74.0% YoY)

EPS YoY

-105.1%

Earnings shrinking (-105.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-32.1%

Burning cash (-32.1%)

Free cash flow is negative. They are burning cash, not generating it.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

0.00

Conservative — low debt load (0.00)

Interest Cover

N/A

—

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

0.0x

Attractive valuation — P/E 0.0

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

N/A

not available

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Not applicable for this business.

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial