KOSDAQ:A159580

Stock Analysis Report

Executive Summary

Zero to Seven Inc., a childcare company, manufactures and distributes infants’ and children’s clothing in South Korea and internationally.


Snowflake Analysis

Adequate balance sheet with acceptable track record.

Share Price & News

How has Zero to Seven's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A159580's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.2%

A159580

8.6%

KR Luxury

0.4%

KR Market


1 Year Return

-13.9%

A159580

-39.1%

KR Luxury

-23.4%

KR Market

Return vs Industry: A159580 exceeded the KR Luxury industry which returned -38.5% over the past year.

Return vs Market: A159580 exceeded the KR Market which returned -19.4% over the past year.


Shareholder returns

A159580IndustryMarket
7 Day32.2%8.6%0.4%
30 Day-24.1%-19.2%-15.2%
90 Day-34.1%-31.9%-21.6%
1 Year-13.9%-13.9%-38.2%-39.1%-21.8%-23.4%
3 Year-28.2%-28.2%-19.3%-22.4%-15.0%-21.9%
5 Year-40.6%-40.6%-41.8%-44.7%-12.3%-22.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zero to Seven 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: A159580 (₩6890) is trading below our estimate of fair value (₩38318.47)

Significantly Below Fair Value: A159580 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: A159580 is poor value based on its PE Ratio (18.7x) compared to the Luxury industry average (8.3x).

PE vs Market: A159580 is poor value based on its PE Ratio (18.7x) compared to the KR market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate A159580's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: A159580 is overvalued based on its PB Ratio (1.9x) compared to the KR Luxury industry average (0.5x).


Next Steps

Future Growth

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

1.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if A159580's forecast earnings growth is above the savings rate (3.4%).

Earnings vs Market: Insufficient data to determine if A159580's earnings are forecast to grow faster than the KR market

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

Revenue vs Market: A159580's revenue (1.9% per year) is forecast to grow slower than the KR market (7.3% per year).

High Growth Revenue: A159580's revenue (1.9% 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 A159580's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Zero to Seven performed over the past 5 years?

-15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A159580 has high quality earnings.

Growing Profit Margin: A159580 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: A159580 has become profitable over the past 5 years, growing earnings by -15.4% per year.

Accelerating Growth: A159580 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: A159580 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (40.2%).


Return on Equity

High ROE: A159580's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is Zero to Seven's financial position?


Financial Position Analysis

Short Term Liabilities: A159580's short term assets (₩97.2B) exceed its short term liabilities (₩64.0B).

Long Term Liabilities: A159580's short term assets (₩97.2B) exceed its long term liabilities (₩19.0B).


Debt to Equity History and Analysis

Debt Level: A159580's debt to equity ratio (41.7%) is considered high.

Reducing Debt: A159580's debt to equity ratio has increased from 0.1% to 41.7% over the past 5 years.


Balance Sheet

Inventory Level: A159580 has a high level of physical assets or inventory.

Debt Coverage by Assets: A159580's debt is covered by short term assets (assets are 3.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: A159580 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: A159580 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Zero to Seven's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate A159580's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate A159580's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if A159580's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if A159580's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of A159580's dividend in 3 years as they are not forecast to pay a notable one for the KR market.


Next Steps

Management

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


CEO

Jung-Min Kim (57yo)

no data

Tenure

Jung-Min Kim serves as the Chief Executive Officer of Zero To Seven Inc. 


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 been substantially diluted in the past year, with total shares outstanding growing by 55.3%.


Top Shareholders

Company Information

Zero to Seven Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zero to Seven Inc.
  • Ticker: A159580
  • Exchange: KOSDAQ
  • Founded: 2000
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₩135.810b
  • Shares outstanding: 19.71m
  • Website: https://zerotoseven.com

Location

  • Zero to Seven Inc.
  • YTN-newsquare
  • 17th/18th Floors
  • Seoul
  • 032-926
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A159580KOSDAQ (KOSDAQ)YesCommon SharesKRKRWFeb 2013

Biography

Zero to Seven Inc., a childcare company, manufactures and distributes infants’ and children’s clothing in South Korea and internationally. The company offers infants’ and children’s clothing line under the allo&lugh, four lads, ALFONSO, and SKÄRBARN brands; and herbal medicinal baby skincare products under the Goongbe brand. It also manages a children’s Website portal under the 0to7.com brand; and sources and distributes exclusive products. In addition, it provides online customer services for customers of baby food through the Maeili.com, as well as online marketing and CRM services. Further, it engages in the franchising business. The company was formerly known as IDR International and changed its name to Zero to Seven Inc. in 2007. Zero to Seven Inc. was founded in 2000 and is based in Seoul, South Korea. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 16:06
End of Day Share Price2020/04/01 00:00
Earnings2019/09/30
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.