Shengfeng Development Limited

SFWL

Integrated Freight & Logistics · Industrials

Price

$0.85

+0.04 (+4.94%)

Market Cap

$70.1M

Exchange

NASDAQ

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Weak

Growth

Strong

Cash Flow

Good

Stability

Good

Valuation

Good

Track this stock — start free trial

Winston Score History

The full picture

Shengfeng Development Limited is a Chinese logistics and freight transportation company. It moves goods across China for businesses, mainly using a network of trucks and regional hubs to deliver cargo from one city to another. The company operates in China's less-than-truckload (LTL) freight market, where shipments from multiple customers are combined into single truck loads to cut costs.

Shengfeng earns money by charging businesses a fee to pick up, sort, and deliver their freight. It operates entirely within China and is a relatively small player in a fragmented industry dominated by larger rivals like S.F. Holdings and ZTO Express. Margins are thin — gross margin sits around 9% — because fuel, labor, and vehicle costs are high. The main growth driver is rising domestic e-commerce demand in China, but the biggest risk is intense price competition from well-funded national carriers that have larger networks and stronger brand recognition.

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

+11.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+3.8% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

75.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$57M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth + cash flow

Shengfeng Development Limited is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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.

Share count broadly stable

+0.1% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 82.4M (2021) → 82.5M (2025)

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

Profit per sale

Gross Margin

9.4%

Thin — 9.4% gross margin

Profit after running costs

Operating Margin

2.9%

Thin — 2.9% operating margin

Return on the money invested

ROCE

7.5%

Weak — 7.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

Full breakdown available with your free trial

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

Try free

Growth

Sales growth

Sales YoY

+13.6%

Fast-growing sales (+13.6% YoY)

Profit growth

EPS YoY

+9.7%

Earnings growing (+9.7% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

Full breakdown available with your free trial

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

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

135%

Turns 135% of profit into real cash

Spare cash per sale

FCF Margin

-0.5%

Burning cash (-0.5%)

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

What it owes vs what it owns

Debt / Equity

0.70

Moderate — manageable debt (0.70)

Covers its interest

Interest Cover

6.17x

Adequate interest coverage (6.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

Full breakdown available with your free trial

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

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

5.9x

Attractive valuation — P/E 5.9

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

Cheaper or dearer next year

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