AIM:ZYT

Stock Analysis Report

Executive Summary

Zytronic plc, together with its subsidiaries, develops and manufactures interactive touch sensor products.

Snowflake

Fundamentals

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

8.1%

ZYT

3.0%

GB Electronic

-0.2%

GB Market


1 Year Return

-45.2%

ZYT

22.4%

GB Electronic

4.7%

GB Market

Return vs Industry: ZYT underperformed the UK Electronic industry which returned 22.4% over the past year.

Return vs Market: ZYT underperformed the UK Market which returned 4.7% over the past year.


Shareholder returns

ZYTIndustryMarket
7 Day8.1%3.0%-0.2%
30 Day-2.4%9.1%0.8%
90 Day-8.0%7.9%3.7%
1 Year-41.0%-45.2%24.4%22.4%10.1%4.7%
3 Year-39.2%-48.1%65.5%57.9%20.9%5.6%
5 Year-5.9%-25.0%126.5%107.1%32.3%2.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZYT (£2) is trading below our estimate of fair value (£2.89)

Significantly Below Fair Value: ZYT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ZYT is good value based on its PE Ratio (10.8x) compared to the Electronic industry average (21.5x).

PE vs Market: ZYT is good value based on its PE Ratio (10.8x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ZYT is good value based on its PB Ratio (1.3x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

How is Zytronic forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

1.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ZYT's forecast earnings growth is above the savings rate (1.2%).

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

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

Revenue vs Market: ZYT's revenue (1.8% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: ZYT's revenue (1.8% 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 ZYT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Zytronic performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZYT has high quality earnings.

Growing Profit Margin: ZYT's current net profit margins (14%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: ZYT's earnings have grown by 6.4% per year over the past 5 years.

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

Earnings vs Industry: ZYT had negative earnings growth (-31.2%) over the past year, making it difficult to compare to the Electronic industry average (-16.7%).


Return on Equity

High ROE: ZYT's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zytronic's financial position?


Financial Position Analysis

Short Term Liabilities: ZYT's short term assets (£19.9M) exceeds its short term liabilities (£1.8M)

Long Term Liabilities: ZYT's short term assets (£19.9M) exceeds its long term liabilities (575.0K)


Debt to Equity History and Analysis

Debt Level: ZYT's debt to equity ratio (0.01%) is considered satisfactory.

Reducing Debt: ZYT's debt to equity ratio has reduced from 10% to 0.01% over the past 5 years.

Debt Coverage: ZYT's debt is well covered by operating cash flow (89733.3%).

Interest Coverage: ZYT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: ZYT's debt is covered by short term assets (assets are 6621.3x debt).


Next Steps

Dividend

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

11.40%

Current Dividend Yield


Dividend Yield vs Market

company11.4%marketbottom25%2.0%markettop25%5.3%industryaverage1.5%forecastin3Years12.5%

Current dividend yield vs market & industry

Notable Dividend: ZYT's dividend (11.4%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: ZYT's dividend (11.4%) is in the top 25% of dividend payers in the UK market (5.33%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (123.4%), ZYT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

12.3yrs

Average management tenure


CEO

Mark Cambridge (55yo)

11.8yrs

Tenure

UK£152,000

Compensation

Mr. Mark Cambridge, B.Sc. (Hons) FIoD has been the Chief Executive Officer of Zytronic PLC since January 21, 2008 and as the Managing Director of its subsidiary namely Zytronic Displays Limited since Febru ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD194.94K) is below average for companies of similar size in the UK market ($USD322.70K).

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


Management Age and Tenure

12.3yrs

Average Tenure

43yo

Average Age

Experienced Management: ZYT's management team is seasoned and experienced (12.3 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: ZYT's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£17,85030 Jul 19
Ian Crosby
EntityIndividual
Role
Head of Sales
Sales & Marketing Director
Shares7,000
Max PriceUK£2.55
BuyUK£36,50026 Mar 19
Ian Crosby
EntityIndividual
Role
Head of Sales
Sales & Marketing Director
Shares10,000
Max PriceUK£3.65
SellUK£36,50026 Mar 19
Ian Crosby
EntityIndividual
Role
Head of Sales
Sales & Marketing Director
Shares10,000
Max PriceUK£3.65

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Andrew Morrison (43yo)

    Technical Director

    • Tenure: 13.8yrs
  • Mark Cambridge (55yo)

    CEO & Executive Director

    • Tenure: 11.8yrs
    • Compensation: UK£152.00k
  • Ian Crosby

    Sales & Marketing Director

    • Tenure: 12.8yrs
  • Claire Smith (41yo)

    Group Finance Director

    • Tenure: 0yrs
    • Compensation: UK£97.00k

Board Members

  • Tudor Davies (68yo)

    Non-Executive Chairman

    • Tenure: 8.7yrs
    • Compensation: UK£78.00k
  • Mark Cambridge (55yo)

    CEO & Executive Director

    • Tenure: 11.8yrs
    • Compensation: UK£152.00k
  • David Buffham (60yo)

    Independent Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: UK£31.00k
  • Claire Smith (41yo)

    Group Finance Director

    • Tenure: 0yrs
    • Compensation: UK£97.00k

Company Information

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


Key Information

  • Name: Zytronic plc
  • Ticker: ZYT
  • Exchange: AIM
  • Founded: 1999
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: UK£32.088m
  • Shares outstanding: 16.04m
  • Website: https://www.zytronicplc.com

Number of Employees


Location

  • Zytronic plc
  • Whiteley Road
  • Blaydon-on-Tyne
  • Tyne and Wear
  • NE21 5NJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZYTAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2000

Biography

Zytronic plc, together with its subsidiaries, develops and manufactures interactive touch sensor products. It offers a range of secure encrypted touch sensors in transactional kiosks, curved interactive su ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 20:38
End of Day Share Price2019/11/22 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.