ZW Data Action Technologies Inc. Common Stock (CNET)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I ask whether a business is understandable, durable and cheap. ZW Data Action is understandable: it provides online advertising, precision marketing and related services in China. But durable it is not. Revenue fell from $30.6 million in FY2023 to $15.4 million in FY2024 and then to $4.6 million in FY2025, as reported in its annual filings. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was only $652,000 and net income was -$350,000. That is a business shrinking toward irrelevance, not one with a moat. It employs 13 people, so scale and bargaining power seem minimal. The balance sheet has low reported debt-to-equity of 0.20, but that is not enough. Trailing free cash flow is -$1.0 million, and the FairStock FCF yield is -19.1% against the 2026-10-13 close. The Altman Z-Score of -8.58 signals serious financial distress; the Piotroski F-Score is 4/9. Losses have persisted: net loss was $6.0 million in FY2023, $3.8 million in FY2024 and $1.8 million in FY2025. The loss narrowed, but revenue collapsed far faster. Valuation offers no comfort. At $1.47, FairStock calculates a P/B of 1.31 and a P/E of -6.13; a negative earnings multiple is not a bargain, it is a warning. Graham would demand a margin of safety in assets and earnings. Here earnings are negative, cash flow is negative, and book value may not be reliable. Without evidence of revenue stabilization or actual profits, this looks speculative rather than investment-grade.

In plain English: ZW Data Action Technologies sells online advertising and marketing services in China. The business looks weak: sales have shrunk sharply, it has lost money for years, and it brings in little cash after expenses. At $1.47, the shares look speculative rather than clearly cheap compared with the company's current sales, losses and net assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer