Shengkai Innovations

VALV

Industrial - Machinery · Industrials

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Mar 31, 2013

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Good

Valuation

Good

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Winston Score History

The full picture

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.

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

Insider Activity

5.8%ownership

→ Flat

Insider ownership roughly steady over the past year

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.

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Quality

Profit per sale

Gross Margin

27.1%

Modest — 27.1% gross margin

Profit after running costs

Operating Margin

-49.5%

Losing money on operations — -49.5%

Return on the money invested

ROCE

-0.8%

Weak — -0.8% return on capital

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

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Growth

Sales growth

Sales YoY

-68.9%

Shrinking sales (-68.9% YoY)

Profit growth

EPS YoY

-110.1%

Earnings shrinking (-110.1% YoY)

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

How steady the profit is

EPS Consistency

1/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-22.8%

Burning cash (-22.8%)

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

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Stability

What it owes vs what it owns

Debt / Equity

0.00

Conservative — low debt load (0.00)

Covers its interest

Interest Cover

N/A

—

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

0.0x

no trend

Attractive valuation — P/E 0.0

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

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Dividends

Not applicable for this business.

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