OTCPK:ZIMC.F

Stock Analysis Report

Executive Summary

ZIM Corporation provides software products and services for the database and mobile markets in the United States, Brazil, Canada, Singapore, and Austria.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.3%

ZIMC.F

-9.9%

US Software

-10.6%

US Market


1 Year Return

-27.8%

ZIMC.F

20.4%

US Software

5.2%

US Market

Return vs Industry: ZIMC.F underperformed the US Software industry which returned 20.4% over the past year.

Return vs Market: ZIMC.F underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

ZIMC.FIndustryMarket
7 Day-0.3%-9.9%-10.6%
30 Day-33.1%-5.5%-8.5%
90 Day-48.4%1.9%-4.6%
1 Year-27.8%-27.8%21.7%20.4%7.4%5.2%
3 Year301.1%301.1%122.5%112.9%31.7%23.2%
5 Year-63.9%-63.9%190.9%169.8%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is ZIM 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: ZIMC.F ($0.04) is trading below our estimate of fair value ($0.74)

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


Price To Earnings Ratio

PE vs Industry: ZIMC.F is good value based on its PE Ratio (3.6x) compared to the Software industry average (43.4x).

PE vs Market: ZIMC.F is good value based on its PE Ratio (3.6x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ZIMC.F is good value based on its PB Ratio (0.2x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is ZIM forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.0%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ZIM has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether ZIM is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access ZIM's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has ZIM performed over the past 5 years?

62.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZIMC.F has a large one-off gain of $223.7K impacting its December 31 2019 financial results.

Growing Profit Margin: ZIMC.F's current net profit margins (18.6%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: ZIMC.F has become profitable over the past 5 years, growing earnings by 62.7% per year.

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

Earnings vs Industry: ZIMC.F had negative earnings growth (-87.6%) over the past year, making it difficult to compare to the Software industry average (18.4%).


Return on Equity

High ROE: ZIMC.F's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ZIM's financial position?


Financial Position Analysis

Short Term Liabilities: ZIMC.F's short term assets ($756.8K) exceed its short term liabilities ($54.1K).

Long Term Liabilities: ZIMC.F's short term assets ($756.8K) exceed its long term liabilities ($70.0K).


Debt to Equity History and Analysis

Debt Level: ZIMC.F is debt free.

Reducing Debt: ZIMC.F has not had any debt for past 5 years.


Balance Sheet

Inventory Level: ZIMC.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ZIMC.F's debt is covered by short term assets.


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: ZIMC.F is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate ZIMC.F'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 ZIMC.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZIMC.F'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 ZIMC.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

16.1yrs

Average management tenure


CEO

Mike Cowpland (76yo)

19yrs

Tenure

0

Dr. Michael C. J. Cowpland, also known as Mike, has been the Chief Executive Officer and President of ZIM Corporation since February 1, 2001. Dr. Cowpland served as the Chief Financial Officer and Chief Ac ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael C. Cowpland
President19yrsno data52.91% $155.4k
John Chapman
Chief Financial Officer12.3yrsUS$12.82kno data
Deborah Weinstein
Secretary16.1yrsno datano data

16.1yrs

Average Tenure

59yo

Average Age

Experienced Management: ZIMC.F's management team is seasoned and experienced (16.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael C. Cowpland
President19yrsno data52.91% $155.4k
Steven Houck
Independent Director18.8yrsUS$685.000.61% $1.8k
James Stechyson
Chairman16.7yrsno data18.03% $53.0k
Donald Gibbs
Independent Director16.6yrsUS$383.000.61% $1.8k

17.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: ZIMC.F's board of directors are seasoned and experienced ( 17.8 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

ZIM Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ZIM Corporation
  • Ticker: ZIMC.F
  • Exchange: OTCPK
  • Founded: 1997
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$293.722k
  • Shares outstanding: 8.14m
  • Website: https://www.zim.biz

Number of Employees


Location

  • ZIM Corporation
  • 150 Isabella Street
  • Suite 150
  • Ottawa
  • Ontario
  • K1S 1V7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZIMC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2003

Biography

ZIM Corporation provides software products and services for the database and mobile markets in the United States, Brazil, Canada, Singapore, and Austria. The company operates in two segments, Mobile and Enterprise Software. It develops and sells ZIM integrated development environment (IDE) software, an enterprise software for use in the design, development, and management of information databases and mission critical applications. The company’s ZIM IDE software provides an IDE for Microsoft Windows, UNIX, and Linux computer operating systems. Its products are used to develop database applications in various industries, including finance, insurance, marketing, human resource, information, and records management. The company also provides migration services and management products; and short message services. ZIM Corporation was founded in 1997 and is headquartered in Ottawa, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:29
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.