LSE:ZTF

Stock Analysis Report

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Executive Summary

Zotefoams plc, together with its subsidiaries, manufactures, distributes, and sells polyolefin block foams in the United Kingdom, Continental Europe, North America, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.

Share Price & News

How has Zotefoams's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

8.6%

ZTF

1.0%

GB Chemicals

0.4%

GB Market


1 Year Return

-15.9%

ZTF

-2.7%

GB Chemicals

-13.8%

GB Market

Return vs Industry: ZTF underperformed the UK Chemicals industry which returned -2.7% over the past year.

Return vs Market: ZTF underperformed the UK Market which returned -13.8% over the past year.


Shareholder returns

ZTFIndustryMarket
7 Day8.6%1.0%0.4%
30 Day9.4%5.6%-0.3%
90 Day26.8%15.7%-1.7%
1 Year-15.5%-15.9%-1.0%-2.7%-10.4%-13.8%
3 Year33.1%29.6%-5.0%-12.8%-4.3%-15.8%
5 Year51.4%41.9%23.9%6.0%22.8%-4.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zotefoams undervalued compared to its fair value and its price relative to the market?

34.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZTF (£4.54) is trading above our estimate of fair value (£4.51)

Significantly Below Fair Value: ZTF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZTF is good value based on its PE Ratio (34.8x) compared to the GB Chemicals industry average (38.7x).

PE vs Market: ZTF is poor value based on its PE Ratio (34.8x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ZTF is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ZTF is overvalued based on its PB Ratio (2.4x) compared to the GB Chemicals industry average (2x).


Next Steps

Future Growth

How is Zotefoams forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZTF's forecast earnings growth (22.4% per year) is above the savings rate (1.2%).

Earnings vs Market: ZTF's earnings (22.4% per year) are forecast to grow slower than the UK market (23.9% per year).

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

Revenue vs Market: ZTF's revenue (6.6% per year) is forecast to grow faster than the UK market (6.3% per year).

High Growth Revenue: ZTF's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZTF's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has Zotefoams performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZTF has high quality earnings.

Growing Profit Margin: ZTF's current net profit margins (8.6%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: ZTF's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: ZTF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZTF had negative earnings growth (-24.7%) over the past year, making it difficult to compare to the Chemicals industry average (-24.7%).


Return on Equity

High ROE: ZTF's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Zotefoams's financial position?


Financial Position Analysis

Short Term Liabilities: ZTF's short term assets (£60.2M) exceed its short term liabilities (£40.9M).

Long Term Liabilities: ZTF's short term assets (£60.2M) exceed its long term liabilities (£29.7M).


Debt to Equity History and Analysis

Debt Level: ZTF's debt to equity ratio (51.6%) is considered high.

Reducing Debt: ZTF's debt to equity ratio has increased from 4.7% to 51.6% over the past 5 years.

Debt Coverage: ZTF's debt is well covered by operating cash flow (24%).

Interest Coverage: ZTF's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Zotefoams's current dividend yield, its reliability and sustainability?

0.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZTF's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: ZTF's dividend (0.89%) is low compared to the top 25% of dividend payers in the UK market (5.15%).


Stability and Growth of Payments

Stable Dividend: ZTF is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: ZTF is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ZTF is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.5yrs

Average board tenure


CEO

David Stirling (53 yo)

20.33yrs

Tenure

UK£637,473

Compensation

Mr. David B. Stirling, BSc, CA, MBA, MSc, has been Group Chief Executive Officer at Zotefoams plc since May 2000 and serves as its Managing Director. Mr. Stirling joined Zotefoams PLC in September 1997 as ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD825.85K) is about average for companies of similar size in the UK market ($USD685.99K).

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


Board Members

NamePositionTenureCompensationOwnership
David Stirling
Group CEO20.33yrsUK£637.47k1.05%
£ 2.3m
Gary McGrath
Group CFO & Director4.75yrsUK£412.16k0.089%
£ 194.2k
Catherine Wall
Independent Non-Executive Director0.33yrno datano data
Alison Fielding
Independent Non-Executive Director0.33yrno datano data
Douglas Robertson
Senior Independent Director2.33yrsUK£41.71k0.015%
£ 33.1k
Steve Good
Non-Executive Chairman4.42yrsUK£83.42k0.062%
£ 136.4k
Jonathan Carling
Independent Non-Executive Director2.67yrsUK£36.49k0.0069%
£ 15.1k

2.5yrs

Average Tenure

57yo

Average Age

Experienced Board: ZTF's board of directors are not considered experienced ( 2.5 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: ZTF insiders have only sold shares 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

Zotefoams plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zotefoams plc
  • Ticker: ZTF
  • Exchange: LSE
  • Founded: 1921
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: UK£218.603m
  • Shares outstanding: 48.15m
  • Website: https://www.zotefoams.com

Number of Employees


Location

  • Zotefoams plc
  • 675 Mitcham Road
  • Croydon
  • Greater London
  • CR9 3AL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZTFLSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 1995
23ZBST (Boerse-Stuttgart)YesOrdinary SharesDEEURFeb 1995

Biography

Zotefoams plc, together with its subsidiaries, manufactures, distributes, and sells polyolefin block foams in the United Kingdom, Continental Europe, North America, and internationally. The company operate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 04:22
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.