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

Good value with reasonable 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


Market Performance


7 Day Return

-8.0%

DZSI

-2.0%

US Communications

1.3%

US Market


1 Year Return

-49.9%

DZSI

0.8%

US Communications

5.9%

US Market

Return vs Industry: DZSI underperformed the US Communications industry which returned 0.8% over the past year.

Return vs Market: DZSI underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

DZSIIndustryMarket
7 Day-8.0%-2.0%1.3%
30 Day-34.6%-6.5%-1.9%
90 Day-38.9%-16.8%-1.8%
1 Year-49.9%-49.9%3.1%0.8%8.3%5.9%
3 Year27.8%27.8%50.2%40.8%45.6%36.2%
5 Year-34.6%-34.6%92.9%72.8%66.1%47.9%

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

Undervalued: DZSI ($7.03) is trading below our estimate of fair value ($26.95)

Significantly Undervalued: DZSI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DZSI is poor value based on its PE Ratio (59.2x) compared to the Communications industry average (29.9x).

PE vs Market: DZSI is poor value based on its PE Ratio (59.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: DZSI is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: DZSI is good value based on its PB Ratio (1.3x) 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?

104.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DZSI's forecast earnings growth (104.9% per year) is above the savings rate (2.7%).

Earnings vs Market: DZSI's earnings (104.9% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: DZSI's revenue (8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: DZSI's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

39.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DZSI's earnings have grown significantly by 39.2% per year over the past 5 years.

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

Earnings vs Industry: DZSI had negative earnings growth (-71.8%) over the past year, making it difficult to compare to the Communications industry average (22.8%).


Return on Equity

High ROE: DZSI's Return on Equity (1.9%) is considered low.


Return on Assets

ROA vs Industry: DZSI's Return on Assets is below or equal to the Communications industry average last year.


Return on Capital Employed

ROCE Improving: DZSI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is DASAN Zhone Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: DZSI's short term assets ($226.5M) exceeds its short term liabilities ($93.0M)

Long Term Liabilities: DZSI's short term assets (226.5M) exceeds its long term liabilities (66.4M)


Debt to Equity History and Analysis

Debt Level: DZSI's debt to equity ratio (48.8%) is considered high

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

Debt Coverage: DZSI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: DZSI's interest payments on its debt are not well covered by EBIT (2.9x coverage).


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 3.850840x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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?

1.6yrs

Average management tenure


CEO

Il Kim (63yo)

2.1yrs

Tenure

US$905,473

Compensation

Mr. Il Yung Kim has been Chief Executive Officer and President at DASAN Zhone Solutions, Inc. since September 11, 2017. Mr. Kim served as Co-Chief Executive Officer at DASAN Zhone Solutions, Inc. since Sep ...


CEO Compensation Analysis

Compensation vs. Market: Il has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.6yrs

Average Tenure

52yo

Average Age

Experienced Management: DZSI's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

60yo

Average Age

Experienced Board: DZSI's board of directors are considered experienced (3.1 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
Role
Senior Key Executive
Executive Officer
Shares10,256
Max PriceUS$9.75

Ownership Breakdown


Management Team

  • Philip Yim (57yo)

    Chief Operating Officer

    • Tenure: 1.2yrs
    • Compensation: US$610.40k
  • Michael Fischer

    Senior Vice President of Sales - Americas

    • Tenure: 0yrs
    • Compensation: US$322.75k
  • Seung-Dong Lee (50yo)

    Global Chief Technology Officer

    • Tenure: 2.3yrs
    • 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 & Director

    • Tenure: 2.1yrs
    • Compensation: US$905.47k
  • Michael Golomb (44yo)

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: US$563.21k
  • 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)

    Director

    • Tenure: 15.9yrs
    • Compensation: US$115.00k
  • Dave Schopp (70yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$38.63k
  • Min Nam (57yo)

    Chairman of the Board

    • Tenure: 3.1yrs
    • Compensation: US$100.00k
  • Rolf Unterberger (53yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$75.00k
  • Seong-Gyun Kim (53yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$105.00k
  • Il Kim (63yo)

    CEO, President & Director

    • Tenure: 2.1yrs
    • 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$150.345m
  • 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 Analysis2019/10/15 00:50
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.