DB:TLFP

Stock Analysis Report

DASAN Zhone Solutions

Executive Summary

DASAN Zhone Solutions, Inc. provides network access solutions and communications platforms for service provider and enterprise networks worldwide.

Rewards

Trading at 71.9% below its fair value

Revenue is forecast to grow 6.09% per year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

How has DASAN Zhone Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TLFP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

TLFP

2.6%

DE Communications

2.0%

DE Market


1 Year Return

-32.0%

TLFP

11.2%

DE Communications

15.1%

DE Market

Return vs Industry: TLFP underperformed the German Communications industry which returned 11.5% over the past year.

Return vs Market: TLFP underperformed the German Market which returned 15% over the past year.


Shareholder returns

TLFPIndustryMarket
7 Day0.6%2.6%2.0%
30 Day-8.8%2.5%1.0%
90 Day23.0%-4.2%3.8%
1 Year-32.0%-32.0%11.8%11.2%18.6%15.1%
3 Year68.2%68.2%1.8%1.5%16.8%6.6%
5 Yearn/a107.2%106.8%23.7%6.7%

Price Volatility Vs. Market

How volatile is DASAN Zhone Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is DASAN Zhone Solutions undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TLFP (€8.3) is trading below our estimate of fair value (€29.52)

Significantly Below Fair Value: TLFP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TLFP is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: TLFP is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TLFP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TLFP is good value based on its PB Ratio (1.7x) compared to the DE Communications industry average (3.1x).


Next Steps

Future Growth

How is DASAN Zhone Solutions forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

6.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TLFP's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if TLFP's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TLFP's revenue (6.1% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: TLFP's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TLFP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has DASAN Zhone Solutions performed over the past 5 years?

33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLFP is currently unprofitable.

Growing Profit Margin: TLFP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TLFP is unprofitable, but has reduced losses over the past 5 years at a rate of 33.4% per year.

Accelerating Growth: Unable to compare TLFP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TLFP is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (49.1%).


Return on Equity

High ROE: TLFP has a negative Return on Equity (-3.11%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DASAN Zhone Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: TLFP's short term assets ($219.8M) exceed its short term liabilities ($99.9M).

Long Term Liabilities: TLFP's short term assets ($219.8M) exceed its long term liabilities ($54.0M).


Debt to Equity History and Analysis

Debt Level: TLFP's debt to equity ratio (47.3%) is considered high.

Reducing Debt: Insufficient data to determine if TLFP's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: TLFP has a high level of physical assets or inventory.

Debt Coverage by Assets: TLFP's debt is covered by short term assets (assets are 4.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if TLFP has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if TLFP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is DASAN Zhone Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TLFP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TLFP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TLFP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TLFP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TLFP's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Il Kim (63yo)

2.4yrs

Tenure

US$905,473

Compensation

Mr. Il Yung Kim has been Chief Executive Officer and President at DASAN Zhone Solutions, Inc. since September 11, 2017. Mr. Kim served as Interim Chief Financial Officer and Treasurer at DASAN Zhone Soluti ...


CEO Compensation Analysis

Compensation vs Market: Il's total compensation ($USD905.47K) is above average for companies of similar size in the German market ($USD634.28K).

Compensation vs Earnings: Il's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Il Kim
CEO, President & Director2.4yrsUS$905.47kno data
Philip Yim
Chief Operating Officer1.5yrsUS$610.40k0.023% $42.3k
Seung-Dong Lee
Global Chief Technology Officer2.7yrsUS$637.19kno data
Thomas Cancro
CFO & Corporate Treasurer0.2yrsno datano data
Blair King
Vice President of Finance & Investor Relations1.1yrsno datano data
Alex Yastremski
General Counsel0yrsno datano data
Jun-Sick Bahk
Senior Vice President of Global Sales0yrsno datano data
Laura Larsen-Misunas
Vice President of Human Resources0yrsno datano data
Keith Nauman
Senior Vice President Quality & Service0yrsno datano data
Daniel Won
President of Korean Business Unit0yrsno datano data

1.5yrs

Average Tenure

52yo

Average Age

Experienced Management: TLFP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Il Kim
CEO, President & Director2.4yrsUS$905.47kno data
David Schopp
Independent Director1.5yrsUS$38.63k0.034% $61.6k
Min Nam
Chairman of the Board3.4yrsUS$100.00k0.054% $98.2k
Rolf Unterberger
Independent Director1.8yrsUS$75.00k0.043% $78.4k
Seong-Gyun Kim
Independent Director3.4yrsUS$105.00k0.075% $136.2k
Joon Kyung Kim
Director0.08yrsno datano data
Choon Yoo
Director0.08yrsno data0.013% $22.7k

1.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: TLFP's board of directors are not considered experienced ( 1.8 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: TLFP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.9%.


Top Shareholders

Company Information

DASAN Zhone Solutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DASAN Zhone Solutions, Inc.
  • Ticker: TLFP
  • Exchange: DB
  • Founded: 1999
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$195.918m
  • Listing Market Cap: US$180.832m
  • Shares outstanding: 21.39m
  • Website: https://www.dasanzhone.com

Number of Employees


Location

  • DASAN Zhone Solutions, Inc.
  • 7195 Oakport Street
  • Oakland
  • California
  • 94621
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DZSINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 2007
TLFPDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2007

Biography

DASAN Zhone Solutions, Inc. provides network access solutions and communications platforms for service provider and enterprise networks worldwide. It offers broadband access products, including customer premise equipment, such as digital subscriber line (DSL) modems; Ethernet access demarcation devices; and gigabit passive optical network (GPON) and 10G point-to-point active Ethernet optical network terminals. The company also provides central office products, such as broadband loop carriers for DSL and voice-grade telephone service; DSL access multiplexers (DSLAMs); optical line terminals for passive optical distribution networks like GPONs; and 10G passive optical networks and 10G point-to-point active Ethernet. In addition, it offers Ethernet switching products; mobile backhaul products comprising standard Ethernet/IP or multiprotocol label switching interfaces; software defined networks and network function virtualization tools and building blocks; and passive optical LAN products consisting of integrated power over Ethernet units, as well as broadband copper access based on very-high-bit-rate DSL and G. fast technology. The company was formerly known as Zhone Technologies, Inc. and changed its name to DASAN Zhone Solutions, Inc. as a result of merger with Dasan Network Solutions, Inc. in September 2016. The company was incorporated in 1999 and is headquartered in Oakland, California. DASAN Zhone Solutions, Inc. is a subsidiary of DASAN Networks, Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:38
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.