NasdaqCM:DZSI

Stock Analysis Report

DASAN Zhone Solutions

Executive Summary

DASAN Zhone Solutions, Inc. provides network access solutions and communications platforms for service provider and enterprise networks worldwide.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has DASAN Zhone Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

DZSI

-5.5%

US Communications

0.7%

US Market


1 Year Return

-47.7%

DZSI

-4.0%

US Communications

12.9%

US Market

Return vs Industry: DZSI underperformed the US Communications industry which returned -4% over the past year.

Return vs Market: DZSI underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

DZSIIndustryMarket
7 Day0%-5.5%0.7%
30 Day4.8%-3.1%4.4%
90 Day-33.1%-2.5%7.0%
1 Year-47.7%-47.7%-1.8%-4.0%15.4%12.9%
3 Year35.1%35.1%43.0%33.9%49.1%39.5%
5 Year-30.3%-30.3%67.5%48.8%62.7%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is DASAN Zhone Solutions 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: DZSI ($7.7) is trading below our estimate of fair value ($24.92)

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


Price To Earnings Ratio

PE vs Industry: DZSI is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: DZSI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DZSI is good value based on its PB Ratio (1.4x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is DASAN Zhone Solutions forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

146.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DZSI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: DZSI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DZSI's is expected to become profitable in the next 3 years.

Revenue vs Market: DZSI's revenue (6.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DZSI's revenue (6.2% 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 DZSI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has DASAN Zhone Solutions performed over the past 5 years?

33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DZSI has large one-off items impacting its financial results.

Growing Profit Margin: DZSI's current net profit margins (-1.3%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: DZSI is unprofitable, but has reduced losses over the past 5 years at a rate of 33.4% per year.

Accelerating Growth: Unable to compare DZSI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DZSI is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (42.2%).


Return on Equity

High ROE: DZSI has a negative Return on Equity (-3.11%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DASAN Zhone Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: DZSI's short term assets ($219.8M) exceeds its short term liabilities ($99.9M)

Long Term Liabilities: DZSI's short term assets (219.8M) exceeds its long term liabilities (54.0M)


Debt to Equity History and Analysis

Debt Level: DZSI's debt to equity ratio (47.3%) is considered high

Reducing Debt: Insufficient data to determine if DZSI's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: DZSI's debt is covered by short term assets (assets are 4.1x 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: Insufficient data to determine if DZSI has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if DZSI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is DASAN Zhone Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Il Kim (63yo)

2.2yrs

Tenure

US$905,473

Compensation

Mr. Il Yung Kim serves as Interim Chief Financial Officer and Treasurer at DASAN Zhone Solutions, Inc. since November 2019. Mr. Kim has been Chief Executive Officer and President at DASAN Zhone Solutions,  ...


CEO Compensation Analysis

Compensation vs Market: Il's total compensation ($USD905.47K) is about average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

1.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: DZSI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.2yrs

Average Tenure

60yo

Average Age

Experienced Board: DZSI's board of directors are considered experienced (3.2 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

BuyUS$99,99621 May 19
Mikhail Golomb
EntityIndividual
Shares10,256
Max PriceUS$9.75

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.9%.


Management Team

  • Philip Yim (57yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
    • Compensation: US$610.40k
  • Blair King

    Vice President of Finance & Investor Relations

    • Tenure: 0.8yrs
  • Seung-Dong Lee (50yo)

    Global Chief Technology Officer

    • Tenure: 2.4yrs
    • Compensation: US$637.19k
  • Jun-Sick Bahk (52yo)

    Senior Vice President of Global Sales

    • Tenure: 0yrs
  • Alex Yastremski

    General Counsel

    • Tenure: 0yrs
  • Il Kim (63yo)

    CEO, President

    • Tenure: 2.2yrs
    • Compensation: US$905.47k
  • Steve Lee

    President of APAC Business Unit & Head of the Asia Pacific Region

    • Tenure: 0.8yrs
  • Keith Nauman

    Senior Vice President Quality & Service

    • Tenure: 0yrs
  • Daniel Won

    President of Korean Business Unit

    • Tenure: 0yrs
  • Laura Larsen-Misunas

    Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • Michael Connors (77yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$115.00k
  • Dave Schopp (70yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$38.63k
  • Min Nam (57yo)

    Chairman of the Board

    • Tenure: 3.2yrs
    • Compensation: US$100.00k
  • Rolf Unterberger (53yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$75.00k
  • Seong-Gyun Kim (53yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$105.00k
  • Il Kim (63yo)

    CEO, President

    • Tenure: 2.2yrs
    • Compensation: US$905.47k

Company Information

DASAN Zhone Solutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DASAN Zhone Solutions, Inc.
  • Ticker: DZSI
  • Exchange: NasdaqCM
  • Founded: 1999
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$164.691m
  • Shares outstanding: 21.39m
  • Website: https://www.dasanzhone.com

Number of Employees


Location

  • DASAN Zhone Solutions, Inc.
  • 7195 Oakport Street
  • Oakland
  • California
  • 94621
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DZSINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 2007
TLFPDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2007

Biography

DASAN Zhone Solutions, Inc. provides network access solutions and communications platforms for service provider and enterprise networks worldwide. It offers broadband access products, including customer pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:22
End of Day Share Price2019/11/15 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.