AIM:ZYT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.


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

-4.2%

ZYT

-0.9%

GB Electronic

-2.0%

GB Market


1 Year Return

-41.8%

ZYT

30.9%

GB Electronic

-14.5%

GB Market

Return vs Industry: ZYT underperformed the UK Electronic industry which returned 32.2% over the past year.

Return vs Market: ZYT underperformed the UK Market which returned -14.2% over the past year.


Shareholder returns

ZYTIndustryMarket
7 Day-4.2%-0.9%-2.0%
30 Day15.0%7.2%-1.7%
90 Day4.5%10.4%-4.2%
1 Year-38.0%-41.8%32.0%30.9%-11.3%-14.5%
3 Year-73.3%-77.8%51.2%45.3%-9.0%-20.3%
5 Year-59.9%-68.9%160.0%141.2%15.3%-10.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZYT (£1.15) is trading below our estimate of fair value (£2.67)

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


Price To Earnings Ratio

PE vs Industry: ZYT is good value based on its PE Ratio (9.7x) compared to the GB Electronic industry average (27x).

PE vs Market: ZYT is good value based on its PE Ratio (9.7x) compared to the UK market (18.1x).


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 (0.8x) compared to the GB Electronic industry average (2.3x).


Next Steps

Future Growth

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

6.3%

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 (6.3% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: ZYT's revenue (6.3% 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?

-7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZYT has high quality earnings.

Growing Profit Margin: ZYT's current net profit margins (10.5%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: ZYT's earnings have declined by 7.4% 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 (-36.1%) over the past year, making it difficult to compare to the Electronic industry average (-2.1%).


Return on Equity

High ROE: ZYT's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Zytronic's financial position?


Financial Position Analysis

Short Term Liabilities: ZYT's short term assets (£18.4M) exceed its short term liabilities (£1.5M).

Long Term Liabilities: ZYT's short term assets (£18.4M) exceed its long term liabilities (£516.0K).


Debt to Equity History and Analysis

Debt Level: ZYT is debt free.

Reducing Debt: ZYT has no debt compared to 5 years ago when its debt to equity ratio was 10.5%.

Debt Coverage: ZYT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ZYT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

9.91%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZYT'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?

13.3yrs

Average management tenure


CEO

Mark Cambridge (56 yo)

12.75yrs

Tenure

UK£169,000

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 ($USD219.46K) is below average for companies of similar size in the UK market ($USD355.19K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Cambridge
CEO & Executive Director12.75yrsUK£169.00k0.58%
£ 106.3k
Claire Smith
Group Finance Directorno dataUK£103.00k0.26%
£ 48.7k
Andrew Morrison
Technical Director14.75yrsno datano data
Ian Crosby
Sales & Marketing Director13.75yrsno datano data

13.3yrs

Average Tenure

44yo

Average Age

Experienced Management: ZYT's management team is seasoned and experienced (13.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Cambridge
CEO & Executive Director12.75yrsUK£169.00k0.58%
£ 106.3k
Claire Smith
Group Finance Directorno dataUK£103.00k0.26%
£ 48.7k
Tudor Davies
Non-Executive Chairman9.58yrsUK£81.00k0.57%
£ 104.5k
David Buffham
Independent Non-Executive Director10.08yrsUK£36.00k0.12%
£ 21.3k

10.1yrs

Average Tenure

58.5yo

Average Age

Experienced Board: ZYT's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Zytronic plc
  • Ticker: ZYT
  • Exchange: AIM
  • Founded: 2000
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: UK£18.451m
  • Shares outstanding: 16.04m
  • Website: https://zytronic.co.uk

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. The company offers touchscreens in gaming; retail, leisure, and commercial applications; digital s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 21:35
End of Day Share Price2020/10/19 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.