olivLaw · US equity research
EShallGo Inc. EHGO
Services-Equipment Rental & Leasing, NEC · SIC 7359 · Vertical: Services-Equipment Rental & Leasing, NEC (SIC 7359)
EShallGo Inc. is an office solutions provider in China, active in selling, leasing and maintaining office equipment through its variable interest entity structure. In fiscal 2026 revenue rose to 16.3 million USD, but gross margin fell and the operating loss remained large, which makes it relevant whether the service-oriented model can become profitable.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, EShallGo Inc. (EHGO) stock was 1.70 USD (−26.72% on the day), with beta 0.45, 52-week range 0.57–23.52 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 47.3
- neutral
- Bollinger (20, 2)
- 0.49 – 3.56
- in the lower half of the band · %B 0.39 · band width 151.4%
- SMA 50 / 200
- 1.36 / 2.29
- mixed trend
- MACD (12, 26, 9)
- 0.23 / 0.29
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +151.9% | −5.9% | +157.8 pp | — |
| 3 months | −11.9% | −4.6% | −7.3 pp | — |
| 6 months | −6.6% | +0.2% | −6.8 pp | — |
| Year to date | −50.8% | +7.4% | −58.2 pp | — |
| 1 year | −71.4% | +8.2% | −79.6 pp | +31.5% |
| 3 years | unavailable | +68.4% | unavailable | +34.0% |
| 5 years | unavailable | +56.5% | unavailable | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Revenue | 23.9 m | 18.4 m | 17.0 m | 13.5 m | 16.3 m |
| Revenue YoY | unavailable | −22.8% | −7.9% | −20.6% | +21.1% |
| Net income | 1.8 m | 477.7 k | 8.7 k | -10.8 m | -11.3 m |
| Net income YoY | unavailable | −73.9% | −98.2% | −124,907.2% | unavailable |
| Diluted EPS | 0.09 | 0.02 | 0.01 | -7.82 | -5.39 |
| Diluted EPS YoY | unavailable | −77.8% | −50.0% | −78,300.0% | unavailable |
| net % | 7.7% | 2.6% | 0.1% | -80.2% | -69.4% |
| Free cash flow | -703.1 k | 430.0 k | 2.2 m | -1.4 m | -5.8 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 3.8 m USD
- Financial debt
- 21.8 k USD
- Net debt
- -3.8 m USD
- Equity
- 14.5 m USD
- Total assets
- 20.8 m USD
- Debt / equity
- 0.00x
- Current ratio
- 3.23x
- ROE
- -72.9%
- ROA
- -49.7%
- FCF margin
- -35.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|
| Revenue | 23.9 m | 18.4 m | 17.0 m | 13.5 m | 16.3 m | SEC (XBRL)· 31 Jul 2026verified |
| Cost of revenue | 16.3 m | 13.7 m | 12.4 m | 10.4 m | 13.8 m | SEC (XBRL)· 31 Jul 2026verified |
| Gross profit | 7.6 m | 4.7 m | 4.6 m | 3.1 m | 2.5 m | SEC (XBRL)· 31 Jul 2026verified |
| Research & development | 302.5 k | 250.3 k | 223.1 k | 20.0 k | 95.5 k | SEC (XBRL)· 31 Jul 2026verified |
| Operating income | 3.0 m | 1.3 m | 910.4 k | -10.1 m | -12.0 m | SEC (XBRL)· 31 Jul 2026verified |
| Depreciation & amortisation | 295.0 k | 379.9 k | 387.8 k | 310.9 k | 272.3 k | SEC (XBRL)· 31 Jul 2026verified |
| EBITDA | 3.2 m ≈ | 1.7 m ≈ | 1.3 m ≈ | -9.8 m ≈ | -11.7 m ≈ | SEC (XBRL)· 31 Jul 2026derived |
| Interest expense | — | — | 0 | 70.2 k | 126.0 k | SEC (XBRL)· 31 Jul 2026verified |
| Pre-tax income | 3.1 m | 1.4 m | 970.1 k | -10.8 m | -12.0 m | SEC (XBRL)· 31 Jul 2026verified |
| Income tax | 163.6 k | 107.8 k | 124.8 k | 113.4 k | 39.2 k | SEC (XBRL)· 31 Jul 2026verified |
| Net income | 1.8 m | 477.7 k | 8.7 k | -10.8 m | -11.3 m | SEC (XBRL)· 31 Jul 2026verified |
| Diluted EPS | 0.09 | 0.02 | 0.01 | -7.82 | -5.39 | SEC (XBRL)· 31 Jul 2026verified |
| Weighted average diluted shares | 20.0 m | 20.1 m | 1.3 m | 1.4 m | 2.1 m | SEC (XBRL)· 31 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|
| Cash | 2.7 m | 4.9 m | 5.4 m | 7.6 m | 3.8 m | SEC (XBRL)· 31 Jul 2026verified |
| Inventories | — | 2.3 m | 2.0 m | 1.8 m | 2.1 m | SEC (XBRL)· 31 Jul 2026verified |
| Current assets | — | 18.3 m | 18.1 m | 23.0 m | 19.6 m | SEC (XBRL)· 31 Jul 2026verified |
| Property, plant & equipment, net | — | 977.1 k | 599.8 k | 385.4 k | 399.9 k | SEC (XBRL)· 31 Jul 2026verified |
| Intangibles (excl. goodwill) | — | — | — | 0 | 75.2 k | SEC (XBRL)· 31 Jul 2026verified |
| Total assets | — | 20.7 m | 19.7 m | 24.8 m | 20.8 m | SEC (XBRL)· 31 Jul 2026verified |
| Short-term debt | — | 145.6 k | — | — | — | SEC (XBRL)· 31 Jul 2024verified |
| Long-term debt | — | — | — | 0 | 21.8 k | SEC (XBRL)· 31 Jul 2026verified |
| Current liabilities | — | 3.8 m | 2.4 m | 7.9 m | 6.1 m | SEC (XBRL)· 31 Jul 2026verified |
| Total liabilities | — | 4.0 m | 2.6 m | 8.3 m | 6.3 m | SEC (XBRL)· 31 Jul 2026verified |
| Equity | 16.1 m | 16.7 m | 17.1 m | 16.6 m | 14.5 m | SEC (XBRL)· 31 Jul 2026verified |
Cash flow · USD
| Line | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|
| Operating cash flow | 216.5 k | 783.9 k | 2.2 m | -1.3 m | -5.7 m | SEC (XBRL)· 31 Jul 2026verified |
| Capex | 919.5 k | 354.0 k | 55.2 k | 98.2 k | 137.5 k | SEC (XBRL)· 31 Jul 2026verified |
| Free cash flow | -703.1 k ≈ | 430.0 k ≈ | 2.2 m ≈ | -1.4 m ≈ | -5.8 m ≈ | SEC (XBRL)· 31 Jul 2026derived |
| Investing cash flow | -2.3 m | 1.2 m | -1.6 m | -5.2 m | 1.4 m | SEC (XBRL)· 31 Jul 2026verified |
| Financing cash flow | 699.4 k | 520.9 k | 50.4 k | 8.7 m | 259.2 k | SEC (XBRL)· 31 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 35.4% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
35% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 35.4% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -102.3% | 0 (vs peers) | 29% |
| Net margin · Quality | -69.4% | 0 (vs peers) | 18% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -4.0% | 0 (on a fixed band) | 24% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -95.2x | 0 (on a fixed band) | 18% |
| Current ratio · Balance sheet | 3.2x | 100 (on a fixed band) | 12% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet40/100 · 2/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality0/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
EShallGo Inc. (EHGO). Latest full fiscal year: 2026; data up to 2026-03-31.
Figures computed from the financial statements: revenue 16.3 m USD in 2026; YoY growth 21.1%; net margin -69.4%; ROE -117.3%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 35.4% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 3.2x
What contradicts it
- ROIC: -102.3%
- Net margin: -69.4%
- Revenue CAGR 3Y: -4.0%
- Interest coverage: -95.2x
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Services-Equipment Rental & Leasing, NEC (SIC 7359) · same industry (4-digit SIC) · compared with 10 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| URIUnited Rentals, Inc. | 64.6 bn | 22.6 | 30.6% | 16.3% | +4.9% | +28% / +119% |
| SUNBSunbelt Rentals Holdings, Inc. | 31.2 bn | 22.4 | 18.2% | 12.1% | +3.4% | unavailable / unavailable |
| AERAerCap Holdings N.V. | 27.7 bn | 7.8 | 21.1% | 44.0% | +6.5% | +24% / +144% |
| MGRCMcGRATH RENTCORP | 3.1 bn | 19.6 | 12.9% | 16.8% | +3.7% | +24% / +25% |
| TRTN-PATriton International Limited | 2.5 bn | 4.9 | 18.8% | 854.3% | +22.4% | −6% / −5% |
| CTOSCustom Truck One Source, Inc. | 2.1 bn | 70.4 | 3.7% | 1.4% | +7.9% | +46% / +60% |
| PRGProg Holdings, Inc. | 1.5 bn | 10.5 | 20.0% | 5.5% | +0.4% | +35% / +43% |
| UPBDUpbound Group, Inc. | 1.5 bn | 13.1 | 15.5% | 2.4% | +8.7% | +39% / −15% |
| EQPTEquipmentShare.com Inc | 1.1 bn | 17.4 | 7.4% | 1.3% | +16.3% | unavailable / unavailable |
| KPLTKatapult Holdings, Inc. | 49.1 m | 7.0 | — | 5.4% | +18.0% | +59% / −10% |
| EHGOEShallGo Inc. | — | — | -117.3% | -69.4% | +21.1% | −71% / unavailable |
1- and 3-year price returns: for EHGO from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 6-K (19 Oct 2026), 6-K (13 Oct 2026), 6-K (29 Sept 2026), 6-K (20 Aug 2026), 6-K (19 Aug 2026), 6-K (06 Aug 2026).
In brief
EShallGo Inc. is an office solutions provider in China, active in selling, leasing and maintaining office equipment through its variable interest entity structure. In fiscal 2026 revenue rose to 16.3 million USD, but gross margin fell and the operating loss remained large, which makes it relevant whether the service-oriented model can become profitable.
SWOT
Strengths
- Wide network of service points across several provinces, with technicians close to clients.
- Distribution relationships with established office equipment brands.
- In-house developed ERP system and recognised management certifications.
Weaknesses
- Gross margin fell in fiscal 2026 and the operating loss remained high.
- Maintenance revenue, the higher-margin part, declined in fiscal 2026.
- The holding structure through a variable interest entity limits direct control over operations.
Opportunities
- Expansion into provinces not yet served and tuck-in acquisitions could add clients and service points.
- Launching the e-commerce platform and mobile app could attract small and mid-sized clients.
- Demand for corporate office services could create new sources of recurring revenue.
Threats
- A slowdown in the Chinese economy could reduce firms' budgets for equipment.
- Rising purchase and labour costs could squeeze margins.
- Restrictions on fund transfers and dividends could limit investors' access to earnings.
Risks
- Persistent operating losshigh
The company reported a large operating loss in fiscal 2026, and if it does not narrow, funding the business could become a problem.
- Dependence on the variable interest entity structurehigh
Operations in China are run through contracts rather than direct ownership, and if these contracts were challenged, control over operations could be affected.
- Restrictions on dividendsmedium
Chinese operating companies must keep statutory reserves, and the company does not plan to pay dividends in the near term, which limits returns to shareholders.
- Economic slowdown and geopolitical tensionsmedium
The report mentions uncertainty over trade relations and regional tensions, which could reduce clients' discretionary spending.
- Dependence on equipment supplierslow
The company relies on a few established brand makers, and changes in distribution terms could affect sales revenue.
Investment thesis
What would need to be true (bull case)
- If the shift to recurring services succeeds, the company could achieve steadier revenue and better margins over time.
- The wide network of service points and relations with major brands give it an advantage in reaching corporate clients.
- Rising demand for office services in China could support revenue growth over the medium term.
What would break the thesis
- Gross margin fell and the operating loss remained high, which could make expansion efforts unsustainable.
- The variable interest entity structure carries legal and control risks that could affect foreign investors.
- Maintenance revenue, the most valuable part for the company, declined in fiscal 2026, which could delay the service strategy.
What to watch
- Trend in gross margin and maintenance revenuenext 10-K
- Reduction of the operating loss and general and administrative expenses2027
- Actual launch of the e-commerce platform2027
- Any tuck-in acquisitions and expansion into new provincesnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 6-K (19 Oct 2026), 6-K (13 Oct 2026), 6-K (29 Sept 2026), 6-K (20 Aug 2026), 6-K (19 Aug 2026), 6-K (06 Aug 2026).
The business
EShallGo, through its operating company Junzhang Shanghai, sells, leases and maintains office equipment such as printers and copiers, and sells consumables and office furniture. The company describes its activity as split into two sectors, office equipment sales and leasing, and after-sale maintenance, and distributes products of major brands such as HP, Epson, Xerox and Sharp. According to the annual report, its clients are mainly small and mid-sized companies, as well as financial institutions and real estate firms 1.
The company has built a network of 155 service points with more than 1000 technicians, spread across 20 provinces in China, which it describes as an online and offline service platform. Management says it wants to shift from a sales-oriented model to a long-term service model, with recurring revenue from leasing and maintenance 1.
The legal structure is unusual: Eshallgo Inc. is a Cayman Islands holding company that operates in China through contracts with the variable interest entity Junzhang Shanghai, without holding ownership interests in it. The report shows that funds can move to and from China only in ways that comply with local rules, and operating companies must retain part of their profit as statutory reserves 1.
Segments
Equipment sales and leasing
This segment covers the sale of new equipment from well-known brands and its leasing to corporate clients, with pricing based on the client's estimated print volume. The report indicates that the revenue growth in fiscal 2026 came mainly from equipment sales 1.
Maintenance and after-sale service
This segment includes leasing contracts with a fixed service fee, after-sale maintenance and lifetime maintenance of equipment. The company sees it as the future source of growth because of higher margins, but maintenance revenue declined in fiscal 2026 1.
Digital platform and remote equipment management
The company is developing a remote management system for large leasing clients and an online ordering platform with a mobile app. Management had planned the e-commerce platform for the first half of 2025, but the report does not confirm that it is already operational 1.
Market context
The company operates in China's office services market, which it describes as large and fragmented. The report states that although the Chinese economy no longer grows at 10% rates, demand for corporate office services has become a new point of market growth 1.
Competition is strongly influenced by equipment suppliers and regional distribution networks, and access to large clients depends on qualifications and participation in tenders. The company notes that its certifications allow it to take part in more office project tenders 1.
Trends
- Shift from sales to recurring servicesmixed
Management is aiming for revenue to come increasingly from services with better margins and loyal clients. If the transition succeeds, it could reduce dependence on one-off equipment sales, but the report shows that in fiscal 2026 sales rose while maintenance declined.
- Slowdown of the Chinese economyheadwind
The report warns that a severe or prolonged slowdown in the global or Chinese economy could reduce discretionary spending by firms and, with it, demand for office equipment and services.
- Digitalisation and remote managementtailwind
Growing demand for smart office solutions and remote equipment monitoring could support the company's service model and reduce the need for technician travel.
- Pressure from purchase and labour costsheadwind
The company says equipment prices, staff costs and inflation could raise the cost of purchased products, which could reduce margins if these cannot be passed on to clients.
Competitive position
The office services market in China is fragmented, with many regional distributors and representatives of large equipment makers. The report does not give a full list of competitors, but stresses that the company's position depends on its service network and its relations with established brand suppliers.
The company's stated advantages are its wide network of service points, its obtained certifications and its in-house ERP system, but the report does not compare these with other market players. The company acknowledges it could strengthen its position through tuck-in acquisitions.
- Regional office equipment distributors in China
Local distributors that compete on sales and service in the same cities. The report does not name them.
- Equipment brand makers distributed by the company, such as HP and Xerox
Manufacturers can sell directly or through their own networks, which could limit distributor margins.
- Independent office equipment maintenance firms
Independent service companies that compete for after-sale maintenance contracts.
- Integrated office solution providers
Companies offering complete office solutions that could compete for large corporate clients.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report (foreign issuer)19 Oct 2026
- Current report (foreign issuer)13 Oct 2026
- Current report (foreign issuer)29 Sept 2026
- Current report (foreign issuer)20 Aug 2026
- Current report (foreign issuer)19 Aug 2026
- Current report (foreign issuer)06 Aug 2026
- Current report (foreign issuer)03 Aug 2026
- Current report (foreign issuer)03 Aug 2026
- Annual report (foreign issuer)31 Jul 2026
- Current report (foreign issuer)01 Jul 2026
Sources
- [1] Form 20-F, fiscal year ended 2026-03-31 · SEC / EShallGo Inc. · 31 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.