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MERC vs ZKIN

MERC
Mercer International Inc.
BEARISH
Price
$1.08
Market Cap
$72.7M
Sector
Basic Materials
AI Confidence
95%
ZKIN
ZK International Group Co., Ltd.
BEARISH
Price
$1.61
Market Cap
$92.3M
Sector
Basic Materials
AI Confidence
85%

Valuation

P/E Ratio
MERC
--
ZKIN
--
Forward P/E
MERC
-1.33
ZKIN
--
P/B Ratio
MERC
1.07
ZKIN
0.43
P/S Ratio
MERC
0.04
ZKIN
1.3
EV/EBITDA
MERC
-75.91
ZKIN
-15.69

Profitability

Gross Margin
MERC
4.93%
ZKIN
5.67%
Operating Margin
MERC
-13.86%
ZKIN
-12.05%
Profit Margin
MERC
-26.65%
ZKIN
-5.59%
ROE
MERC
-200.02%
ZKIN
-15.17%
ROA
MERC
-5.23%
ZKIN
-3.72%

Growth

Revenue Growth
MERC
-8.0%
ZKIN
-43.5%
Earnings Growth
MERC
--
ZKIN
--

Financial Health

Debt/Equity
MERC
23.89
ZKIN
1.12
Current Ratio
MERC
3.05
ZKIN
1.44
Quick Ratio
MERC
1.71
ZKIN
0.81

Dividends

Dividend Yield
MERC
16.04%
ZKIN
--
Payout Ratio
MERC
15.71%
ZKIN
0.0%

AI Verdict

MERC BEARISH

MERC exhibits severe financial distress, anchored by a weak Piotroski F-Score of 2/9 and a catastrophic ROE of -200.02%. The company is heavily over-leveraged with a Debt/Equity ratio of 23.89, suggesting an unsustainable capital structure. Despite a superficially attractive dividend yield of 16.04%, the combination of negative profit margins (-26.65%) and a technical freefall (1Y change of -78.3%) indicates a high risk of capital impairment or dividend suspension. The stock is currently trading near its 52-week low, reflecting a market that has priced in significant fundamental deterioration.

Strengths
Extremely low Price-to-Sales ratio (0.04)
Current Ratio of 3.05 suggests short-term liquidity is maintained
Price is trading near book value (P/B 1.07)
Risks
Extreme leverage with Debt/Equity at 23.89
Severe profitability collapse with ROE at -200.02%
Negative revenue growth (-8.00% YoY) and crashing EPS (-656% YoY)
ZKIN BEARISH

ZKIN presents a classic value trap profile, characterized by a stable but mediocre Piotroski F-Score of 4/9 and a complete absence of positive growth catalysts. While the stock trades at a deep discount to book value (P/B 0.43), this is offset by a catastrophic year-over-year revenue decline of 43.50% and negative profitability across all key margins. The technical trend is entirely bearish (0/100), and the lack of analyst coverage or dividend support suggests a high-risk speculative environment.

Strengths
Low Price-to-Book ratio (0.43) suggesting potential asset undervaluation
Current Ratio of 1.44 indicates adequate short-term liquidity
Profit margin (-5.59%) is actually superior to the sector average (-10.72%)
Risks
Severe revenue contraction of -43.50% YoY
Negative Return on Equity (-15.17%) and Return on Assets (-3.72%)
Very thin gross margins (5.67%) leaving little room for operational error

Compare Another Pair

MERC vs ZKIN: Head-to-Head Comparison

This page compares Mercer International Inc. (MERC) and ZK International Group Co., Ltd. (ZKIN) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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