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

Undervalued with excellent balance sheet 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

-7.9%

ZTF

2.4%

GB Chemicals

1.9%

GB Market


1 Year Return

-39.4%

ZTF

-17.8%

GB Chemicals

2.4%

GB Market

Return vs Industry: ZTF underperformed the UK Chemicals industry which returned -17.8% over the past year.

Return vs Market: ZTF underperformed the UK Market which returned 2.4% over the past year.


Shareholder returns

ZTFIndustryMarket
7 Day-7.9%2.4%1.9%
30 Day-42.7%-7.5%-1.1%
90 Day-47.3%-5.8%-1.8%
1 Year-38.8%-39.4%-14.4%-17.8%7.4%2.4%
3 Year26.9%22.0%-5.2%-12.9%18.2%3.7%
5 Year51.5%40.0%31.8%11.1%35.7%6.1%

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 compared to its fair value and its price relative to the market?

45.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ZTF (£3.15) is trading below our estimate of fair value (£5.82)

Significantly Undervalued: ZTF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZTF is good value based on its PE Ratio (18.1x) compared to the Chemicals industry average (18.7x).

PE vs Market: ZTF is poor value based on its PE Ratio (18.1x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: ZTF is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ZTF is good value based on its PB Ratio (1.7x) 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?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZTF's forecast earnings growth (20.4% per year) is above the savings rate (1.2%).

Earnings vs Market: ZTF's earnings (20.4% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: ZTF's revenue (8.8% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: ZTF's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ZTF's Return on Equity is forecast to be low in 3 years time (11.4%).


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

Earnings Trend: ZTF's earnings have grown by 19.3% per year over the past 5 years.

Accelerating Growth: ZTF's earnings growth over the past year (13.4%) is below its 5-year average (19.3% per year).

Earnings vs Industry: ZTF earnings growth over the past year (13.4%) exceeded the Chemicals industry -3.5%.


Return on Equity

High ROE: ZTF's Return on Equity (9.5%) is considered low.


Return on Assets

ROA vs Industry: ZTF has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: ZTF has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Zotefoams's financial position?


Financial Position Analysis

Short Term Liabilities: ZTF's short term assets (£53.1M) exceeds its short term liabilities (£20.7M)

Long Term Liabilities: ZTF's short term assets (53.1M) exceeds its long term liabilities (31.4M)


Debt to Equity History and Analysis

Debt Level: ZTF's debt to equity ratio (32.5%) is considered satisfactory

Reducing Debt: ZTF's debt to equity ratio has increased from 12.1% to 32.5% over the past 5 years.

Debt Coverage: ZTF's debt is well covered by operating cash flow (34.6%).

Interest Coverage: ZTF's interest payments on its debt are well covered by EBIT (31.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: ZTF's debt is covered by short term assets (assets are 1.863030x debt).


Next Steps

Dividend

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

1.94%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.0%markettop25%5.4%industryaverage3.2%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ZTF's dividend (1.94%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2%).

High Dividend: ZTF's dividend (1.94%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: ZTF's dividends per share have been stable in the past 10 years.

Growing Dividend: ZTF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.5%), ZTF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZTF's dividends in 3 years are forecast to be well covered by earnings (35.8% payout ratio).


Next Steps

Management

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

3.5yrs

Average board tenure


CEO

David Stirling (52yo)

19.4yrs

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

Compensation vs. Market: David's total compensation ($USD1.02M) is about average for companies of similar size in the UK market ($USD646.82K).

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


Board Age and Tenure

3.5yrs

Average Tenure

58yo

Average Age

Experienced Board: ZTF's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: ZTF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£4,97409 Oct 19
Jonathan Carling
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,437
Max PriceUK£3.46
BuyUK£10,23009 Oct 19
Gary McGrath
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Director
Shares3,000
Max PriceUK£3.41
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: 19.4yrs
    • 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: 19.4yrs
    • Compensation: UK£792.30k
  • Doug Robertson (65yo)

    Senior Independent Director

    • Tenure: 1.4yrs
    • Compensation: UK£40.75k
  • Steve Good (58yo)

    Non-Executive Chairman

    • Tenure: 3.5yrs
    • Compensation: UK£81.50k
  • Jon Carling

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£35.69k
  • Angela Bromfield

    Non-Executive Director

    • Tenure: 5.8yrs
    • 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£150.875m
  • 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 Analysis2019/10/17 20:35
End of Day Share Price2019/10/17 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.