Kanzhun Limited
Kanzhun Limited Fundamental Analysis
Kanzhun Limited (BZ) shows strong financial fundamentals with a PE ratio of 20.50, profit margin of 31.09%, and ROE of 14.97%. The company generates $8.0B in annual revenue with strong year-over-year growth of 23.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 90.7/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze BZ's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBZ demonstrates superior asset utilization.
Valuation Score
ExcellentBZ trades at attractive valuation levels.
Growth Score
ExcellentBZ delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBZ maintains a strong and stable balance sheet.
Profitability Score
ModerateBZ maintains healthy but balanced margins.
Key Financial Metrics
Is BZ Expensive or Cheap?
P/E Ratio
BZ trades at 20.50 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BZ's PEG of 0.21 indicates potential undervaluation.
Price to Book
The market values Kanzhun Limited at 2.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 25.76 times EBITDA. This signals the market has high growth expectations.
How Well Does BZ Make Money?
Net Profit Margin
For every $100 in sales, Kanzhun Limited keeps $31.09 as profit after all expenses.
Operating Margin
Core operations generate 26.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.97 in profit for every $100 of shareholder equity.
ROA
Kanzhun Limited generates $10.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kanzhun Limited generates strong operating cash flow of $4.18B, reflecting robust business health.
Free Cash Flow
Kanzhun Limited generates strong free cash flow of $3.33B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.23 in free cash annually.
FCF Yield
BZ converts 6.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.009
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How BZ Stacks Against Its Sector Peers
| Metric | BZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.50 | 27.03 | Better (Cheaper) |
| ROE | 14.97% | 1290.00% | Weak |
| Net Margin | 31.09% | -29392.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 4.18 | 10.88 | Strong Liquidity |
| ROA | 10.31% | -1541816.00% (disorted) | Strong |
BZ outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kanzhun Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
650.38%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
421.58%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
3515.77%
Industry Style: Cyclical, Value, Infrastructure
High Growth