Market Cap
CN¥109.1b
Last Updated
2021/04/12 09:09 UTC
Data Sources
Company Financials +
Executive Summary
ZTE Corporation provides integrated telecommunications and information technology (IT) solutions worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet average dividend payer.
Similar Companies
Share Price & News
How has ZTE's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 000063 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: 000063's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-5.3%
63
-0.8%
CN Communications
-1.1%
CN Market
1 Year Return
-27.2%
63
-18.0%
CN Communications
28.4%
CN Market
Return vs Industry: 000063 underperformed the CN Communications industry which returned -18% over the past year.
Return vs Market: 000063 underperformed the CN Market which returned 28.4% over the past year.
Shareholder returns
| 63 | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.3% | -0.8% | -1.1% |
| 30 Day | -9.4% | -0.3% | 0.6% |
| 90 Day | -20.7% | -14.6% | -4.5% |
| 1 Year | -26.8%-27.2% | -17.7%-18.0% | 30.4%28.4% |
| 3 Year | -10.0%-10.5% | -13.8%-14.9% | 25.9%19.9% |
| 5 Year | 98.6%94.2% | -16.8%-18.5% | 23.6%15.5% |
Long-Term Price Volatility Vs. Market
How volatile is ZTE's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is ZTE undervalued compared to its fair value and its price relative to the market?
30.34x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 000063 (CN¥28.31) is trading above our estimate of fair value (CN¥19.16)
Significantly Below Fair Value: 000063 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 000063 is good value based on its PE Ratio (30.7x) compared to the CN Communications industry average (48x).
PE vs Market: 000063 is good value based on its PE Ratio (30.7x) compared to the CN market (33.9x).
Price to Earnings Growth Ratio
PEG Ratio: 000063 is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: 000063 is overvalued based on its PB Ratio (3x) compared to the CN Communications industry average (2.9x).
Future Growth
How is ZTE forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
16.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 000063's forecast earnings growth (16.4% per year) is above the savings rate (3.3%).
Earnings vs Market: 000063's earnings (16.4% per year) are forecast to grow slower than the CN market (23.4% per year).
High Growth Earnings: 000063's earnings are forecast to grow, but not significantly.
Revenue vs Market: 000063's revenue (7.4% per year) is forecast to grow slower than the CN market (17.9% per year).
High Growth Revenue: 000063's revenue (7.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 000063's Return on Equity is forecast to be low in 3 years time (14.1%).
Past Performance
How has ZTE performed over the past 5 years?
15.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 000063 has a large one-off gain of CN¥1.2B impacting its December 31 2020 financial results.
Growing Profit Margin: 000063's current net profit margins (4.2%) are lower than last year (5.7%).
Past Earnings Growth Analysis
Earnings Trend: 000063's earnings have grown by 15.5% per year over the past 5 years.
Accelerating Growth: 000063's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 000063 had negative earnings growth (-17.2%) over the past year, making it difficult to compare to the Communications industry average (2.1%).
Return on Equity
High ROE: 000063's Return on Equity (10.2%) is considered low.
Financial Health
How is ZTE's financial position?
Financial Position Analysis
Short Term Liabilities: 000063's short term assets (CN¥107.0B) exceed its short term liabilities (CN¥74.4B).
Long Term Liabilities: 000063's short term assets (CN¥107.0B) exceed its long term liabilities (CN¥30.1B).
Debt to Equity History and Analysis
Debt Level: 000063's debt to equity ratio (76.7%) is considered high.
Reducing Debt: 000063's debt to equity ratio has increased from 58.9% to 76.7% over the past 5 years.
Debt Coverage: 000063's debt is well covered by operating cash flow (28.9%).
Interest Coverage: 000063 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is ZTE current dividend yield, its reliability and sustainability?
0.71%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 000063's dividend (0.71%) is higher than the bottom 25% of dividend payers in the CN market (0.43%).
High Dividend: 000063's dividend (0.71%) is low compared to the top 25% of dividend payers in the CN market (1.81%).
Stability and Growth of Payments
Stable Dividend: 000063's dividend payments have been volatile in the past 10 years.
Growing Dividend: 000063's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.7%), 000063's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 000063's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Ziyang Xu (48 yo)
2.75yrs
Tenure
CN¥7,769,000
Compensation
Mr. Ziyang Xu has been President of ZTE Corp. since July 5, 2018 and its Executive Director sine August 28, 2018. Since July 2018, Mr. Xu has been director of ZTE Microelectronics Technology Company Limite...
CEO Compensation Analysis
Compensation vs Market: Ziyang's total compensation ($USD1.19M) is above average for companies of similar size in the CN market ($USD329.64K).
Compensation vs Earnings: Ziyang's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: 000063's management team is considered experienced (3 years average tenure).
Board Members
Experienced Board: 000063's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
ZTE Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: ZTE Corporation
- Ticker: 63
- Exchange: SZSE
- Founded: 1985
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: CN¥109.134b
- Shares outstanding: 3.85b
- Website: https://www.zte.com.cn
Number of Employees
Location
- ZTE Corporation
- No. 55, Hi-tech Road South
- Shenzhen
- Guangdong Province
- 518057
- China
Listings
Biography
ZTE Corporation provides integrated telecommunications and information technology (IT) solutions worldwide. It operates through three segments: Carriers’ Networks, Consumer Business, and Government and Cor...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/12 09:09 |
| End of Day Share Price | 2021/04/12 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.