ZW Data Action Technologies

CNET

Advertising Agencies · Communication Services

Price

$1.39

+0.01 (+0.72%)

Market Cap

$5.1M

Exchange

NASDAQ Capital Market

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count falling — buybacks

−59.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 6.6M (2021) → 2.7M (2025)

ZW Data Action Technologies is a small Chinese company that helps businesses advertise and market themselves online. It offers digital marketing services, data analytics, and advertising solutions mainly to small and medium-sized businesses in China. The company operates in China's crowded online advertising industry.

ZW Data makes money by charging clients fees for running digital ad campaigns, providing marketing data services, and helping businesses reach customers through Chinese internet platforms. It operates almost entirely in China and is a very small company with a market cap near zero. The gross margin of around 7% is thin, meaning the company keeps very little of each dollar it earns, and the deep operating losses suggest costs far exceed revenue. The biggest risk is its ability to survive financially — with negative returns on capital and heavy losses, the company faces serious questions about long-term viability in a highly competitive Chinese digital advertising market dominated by giants like Alibaba and Tencent.

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

-76.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+116.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Runway

~19 months

$2M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Adequate runway but may need to raise capital within 2 years

Revenue declining

ZW Data Action Technologies'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.

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Quality

Gross Margin

7.0%

Thin — 7.0% gross margin

Operating Margin

20.6%

Excellent — 20.6% operating margin

ROCE

1.8%

Weak — 1.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-75.3%

Shrinking sales (-75.3% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-40.4%

Burning cash (-40.4%)

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

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Stability

Debt / Equity

0.04

Conservative — low debt load (0.04)

Interest Cover

N/A

—

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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