LSE:ZTF

Stock Analysis Report

Executive Summary

Zotefoams plc, together with its subsidiaries, manufactures, distributes, and sells polymer foam in the United Kingdom, Continental Europe, North America, and internationally.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

ZTF

-4.8%

GB Chemicals

-0.2%

GB Market


1 Year Return

3.8%

ZTF

-25.8%

GB Chemicals

-1.9%

GB Market

ZTF outperformed the Chemicals industry which returned -25.8% over the past year.

ZTF outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.9% over the past year.


Share holder returns

ZTFIndustryMarket
7 Day-1.8%-4.8%-0.2%
30 Day-1.8%5.2%4.4%
90 Day-9.4%-7.2%0.5%
1 Year5.0%3.8%-22.4%-25.8%2.9%-1.9%
3 Year116.1%107.7%4.8%-3.6%20.7%6.3%
5 Year139.9%121.8%34.1%13.4%33.2%5.1%

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 based on future cash flows and its price relative to the stock market?

28%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Zotefoams's share price is below the future cash flow value, and at a moderate discount (> 20%).

Zotefoams's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Zotefoams is overvalued based on earnings compared to the GB Chemicals industry average.

Zotefoams is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Zotefoams is poor value based on expected growth next year.


Price Based on Value of Assets

Zotefoams is overvalued based on assets compared to the GB Chemicals industry average.


Next Steps

Future Growth

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

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Zotefoams's revenue is expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

Zotefoams's earnings are expected to grow significantly at over 20% yearly.

Zotefoams's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Zotefoams's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Zotefoams's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Zotefoams is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Zotefoams performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Zotefoams's year on year earnings growth rate has been positive over the past 5 years.

Zotefoams's 1-year earnings growth is less than its 5-year average (13.4% vs 19.3%)

Zotefoams's earnings growth has exceeded the GB Chemicals industry average in the past year (13.4% vs -3.6%).


Return on Equity

Zotefoams has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Zotefoams used its assets more efficiently than the GB Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Zotefoams's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is Zotefoams's financial position?


Financial Position Analysis

Zotefoams is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Zotefoams's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Zotefoams's level of debt (32.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (12.1% vs 32.5% today).

Debt is well covered by operating cash flow (34.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 31.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

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

1.25%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Zotefoams's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).

Zotefoams's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.41%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).


Next Steps

Management

What is the CEO of Zotefoams's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average board tenure


CEO

David Stirling (52yo)

19.3yrs

Tenure

UK£792,297

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 F ...


CEO Compensation Analysis

David's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

3.4yrs

Average Tenure

58yo

Average Age

The tenure for the Zotefoams board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUK£188,15625 Apr 19
David Stirling
EntityIndividual
Role
Chief Executive Officer
Group CEO
Shares32,808
Max PriceUK£5.74
SellUK£110,06225 Apr 19
Gary McGrath
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Director
Shares19,191
Max PriceUK£5.74

Ownership Breakdown


Management Team

  • David Stirling (52yo)

    Group CEO

    • Tenure: 19.3yrs
    • Compensation: UK£792.30k
  • Gary McGrath

    Group CFO & Director

    • Tenure: 3.8yrs
    • Compensation: UK£563.80k
  • James Adams

    Company Secretary

    • Tenure: 0yrs

Board Members

  • David Stirling (52yo)

    Group CEO

    • Tenure: 19.3yrs
    • Compensation: UK£792.30k
  • Doug Robertson (65yo)

    Senior Independent Director

    • Tenure: 1.3yrs
    • Compensation: UK£40.75k
  • Steve Good (58yo)

    Non-Executive Chairman

    • Tenure: 3.4yrs
    • Compensation: UK£81.50k
  • Jon Carling

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£35.69k
  • Angela Bromfield

    Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£40.75k
  • Gary McGrath

    Group CFO & Director

    • Tenure: 3.8yrs
    • Compensation: UK£563.80k

Company Information

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


Key Information

  • Name: Zotefoams plc
  • Ticker: ZTF
  • Exchange: LSE
  • Founded: 1992
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: UK£258.643m
  • Shares outstanding: 47.90m
  • Website: https://www.zotefoams.com

Number of Employees


Location

  • Zotefoams plc
  • 675 Mitcham Road
  • Croydon
  • Surrey
  • 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 polymer foam in the United Kingdom, Continental Europe, North America, and internationally. The company operates through  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 20:34
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
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.