WF International Limited (WXM) AI Stock Analysis
WXM AI stock analysis summary
AI ResearchWF International Limited is a China-based provider of HVAC, floor heating, and water purification system installation and maintenance services. The company experienced a revenue decline of 13.7% in FY2025 to $13.4M, generating a net loss of -$3.3M alongside a trailing twelve-month operating margin of -104.1%. Its shares closed at $3.17, representing a 1-year return of -91.0% against a market capitalization of $9.9M.
- Market cap
- $9.9M
- Revenue (TTM)
- $7.0M
- P/E
- —
- 1Y return
- -91.0% S&P 500 16.8%
- Avg. target
- —
Bull case
- The company maintained a positive net cash position of $1.2M as of June 30, 2026, with cash and short-term investments of $4.7M exceeding total debt of $3.5M.
- Insider ownership stands at 17.5%, indicating meaningful alignment between company leadership and shareholders.
- The stock trades at a price-to-sales ratio of 1.4x, which is below the US-listed Industrials peer median of 1.5x.
Bear case
- Financial performance deteriorated in FY2025 with net losses widening to -$3.3M and an operating margin of -21.4%.
- Trailing twelve-month revenue fell to $7.0M, reflecting a quarterly revenue contraction of 73.4% year-over-year.
- The company generated negative free cash flow of -$1.6M and negative operating cash flow of -$1.1M in FY2025.
What WF International does
Founded in 2009 and based in Chengdu, China, WF International Limited operates through its subsidiaries to provide supply, installation, fitting-out, and maintenance services. Its offerings focus on heating, ventilation, and air conditioning (HVAC), floor heating, and water purification systems across the People's Republic of China. The company serves large-scaled commercial projects, including offices, hotels, manufactures, airports, and hospitals, as well as commercial real estate development clients. As an industrial distribution provider, it operates with 28 employees.
Growth and profitability
WF International reported revenue of $15.3M in FY2021, which dropped 26.1% to $11.3M in FY2022 before rebounding 35.3% to $15.3M in FY2023. Revenue reached $15.5M in FY2024 with gross margin of 18.6% and net income of $962,740. However, in FY2025, revenue contracted 13.7% to $13.4M, with gross margin narrowing to 8.8%, operating margin of -21.4%, and net income of -$3.3M. This resulted in a 4-year revenue CAGR of -3.3% from FY2021 to FY2025. For the trailing twelve months ending December 31, 2024, revenue stood at $7.0M, quarterly revenue growth contracted 73.4% year-over-year, and operating margin dropped to -104.1%.
Balance sheet and cash flow
As of June 30, 2026, WF International held $4.7M in cash and short-term investments against total debt of $3.5M, yielding net cash of $1.2M. The company recorded shareholders' equity of $5.9M and total assets of $14.0M, with a current ratio of 1.31 and a debt-to-equity ratio of 0.60. Cash flow remained negative in FY2025, with operating cash flow of -$1.1M and free cash flow of -$1.6M. Capital expenditures for FY2025 were $511,153.
Valuation and performance
At a closing price of $3.17 on October 16, 2026, WF International has a market capitalization of $9.9M and an enterprise value of $11.3M. The stock trades at a price-to-sales multiple of 1.4x, slightly below the 1.5x median of its US-listed Industrials peers. Its EV-to-EBITDA ratio of 42.2x is elevated compared to the peer median of 13.9x. The stock has underperformed broader benchmarks, recording a 1-year return of -91.0% and a year-to-date return of -37.8%, while the S&P 500 (SPY) gained 16.8% over the past year. Shares trade 29.5% below their 200-day average.
What analysts expect
WF International Limited currently has no Wall Street analyst coverage, consensus ratings, or published price targets. Earnings estimates and earnings track record data are not available for the company. Additionally, no next earnings announcement date is scheduled. With a market capitalization of $9.9M and zero institutional ownership reported at 0.0%, the company lacks regular coverage by research analysts.
Key risks and what to watch
- WF International's stock experienced a steep decline of 91.0% over the past year, trading near its 52-week low of $2.60.
- Operating margin for the trailing twelve months deteriorated severely to -104.1%, while return on equity sank to -109.7%.
- Total debt of $3.5M against shareholders' equity of $5.9M results in a debt-to-equity ratio of 0.60 amid persistent operating losses.
- Institutional ownership sits at 0.0%, which may limit liquidity and market support for the stock.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this WXM AI stock analysis
This page is an AI-written research summary of WF International Limited (WXM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: WXM income statement, WXM balance sheet, WXM key metrics, WXM chart. See the WXM stock overview for the latest quote and news.
WXM AI stock analysis FAQ
What does WF International Limited do?
WF International Limited provides supply, installation, fitting-out, and maintenance services for HVAC, floor heating, and water purification systems in China. The company serves large commercial projects such as offices, hotels, airports, and hospitals.
What was WF International's financial performance in FY2025?
In FY2025, WF International reported revenue of $13.4M, representing a 13.7% year-over-year decline. The company posted a net loss of -$3.3M and an operating margin of -21.4%.
How much cash and debt does WF International have?
As of June 30, 2026, the company held $4.7M in cash and short-term investments alongside total debt of $3.5M, resulting in net cash of $1.2M. Shareholders' equity was $5.9M, and the current ratio stood at 1.31.
Does WF International pay a dividend?
No, WF International Limited does not pay a dividend. The company generated negative free cash flow of -$1.6M in FY2025 and reported a net loss of -$3.3M.
How has WXM stock performed compared to the S&P 500?
WXM stock declined 91.0% over the past year, closing at $3.17 on October 16, 2026. In comparison, the S&P 500 (SPY) gained 16.8% over the same period.