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ZTE

OTCPK:ZTCO.Y
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZTCO.Y
OTCPK
CN¥120B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

ZTE Corporation provides telecommunications and information technology (IT) services worldwide. The last earnings update was 17 days ago. More info.


Add to Portfolio Compare Print
  • ZTE has significant price volatility in the past 3 months.
ZTCO.Y Share Price and Events
7 Day Returns
2.8%
OTCPK:ZTCO.Y
-6.8%
US Communications
-3.9%
US Market
1 Year Returns
-
OTCPK:ZTCO.Y
7.5%
US Communications
1.4%
US Market
ZTCO.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ZTE (ZTCO.Y) 2.8% -11.3% 26.3% - 137.1% 85.9%
US Communications -6.8% -10.5% 3.9% 7.5% 75.7% 74.8%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • No trading data on ZTCO.Y.
  • No trading data on ZTCO.Y.
Price Volatility
ZTCO.Y
Industry
5yr Volatility vs Market
Related Companies

Value

 Is ZTE undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ZTE to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ZTE.

OTCPK:ZTCO.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:ZTCO.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.073 (1 + (1- 25%) (31.1%))
1.216
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.216 * 5.96%)
9.98%

Discounted Cash Flow Calculation for OTCPK:ZTCO.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ZTE is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:ZTCO.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.98%)
2019 5,837.00 Analyst x1 5,307.40
2020 4,558.50 Analyst x1 3,768.82
2021 7,602.00 Analyst x2 5,714.83
2022 10,329.68 Est @ 35.88% 7,060.81
2023 13,008.77 Est @ 25.94% 8,085.29
2024 15,477.05 Est @ 18.97% 8,746.61
2025 17,659.45 Est @ 14.1% 9,074.45
2026 19,547.17 Est @ 10.69% 9,133.11
2027 21,169.92 Est @ 8.3% 8,993.86
2028 22,573.52 Est @ 6.63% 8,720.03
Present value of next 10 years cash flows CN¥74,605.22
OTCPK:ZTCO.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥22,573.52 × (1 + 2.73%) ÷ (9.98% – 2.73%)
CN¥319,921.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥319,921.62 ÷ (1 + 9.98%)10
CN¥123,584.05
OTCPK:ZTCO.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥74,605.22 + CN¥123,584.05
CN¥198,189.27
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥198,189.27 / 4,192.67
CN¥47.27
OTCPK:ZTCO.Y Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:ZTCO.Y represents 0.19043x of SZSE:000063
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.19043x
Value per Share
(Listing Adjusted, USD)
= Value per Share (CNY) x Listing Adjustment Factor
= CN¥ 47.27 x 0.19043
$9.00
Value per share (USD) From above. $9.00
Current discount Discount to share price of $5.81
= -1 x ($5.81 - $9.00) / $9.00
35.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ZTE is available for.
Intrinsic value
35%
Share price is $5.81 vs Future cash flow value of $9
Current Discount Checks
For ZTE to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ZTE's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ZTE's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ZTE's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ZTE's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:ZTCO.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥-0.17
SZSE:000063 Share Price ** SZSE (2019-05-15) in CNY CN¥30.51
United States of America Communications Industry PE Ratio Median Figure of 33 Publicly-Listed Communications Companies 29.46x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ZTE.

OTCPK:ZTCO.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SZSE:000063 Share Price ÷ EPS (both in CNY)

= 30.51 ÷ -0.17

-178.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ZTE is loss making, we can't compare its value to the US Communications industry average.
  • ZTE is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does ZTE's expected growth come at a high price?
Raw Data
OTCPK:ZTCO.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -178.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
28.2%per year
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.11x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for ZTE, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ZTE's assets?
Raw Data
OTCPK:ZTCO.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥7.09
SZSE:000063 Share Price * SZSE (2019-05-15) in CNY CN¥30.51
United States of America Communications Industry PB Ratio Median Figure of 69 Publicly-Listed Communications Companies 1.97x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
OTCPK:ZTCO.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SZSE:000063 Share Price ÷ Book Value per Share (both in CNY)

= 30.51 ÷ 7.09

4.31x

* Primary Listing of ZTE.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ZTE is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess ZTE's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. ZTE has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ZTE expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ZTE expected to grow at an attractive rate?
  • ZTE's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • ZTE's earnings growth is expected to exceed the United States of America market average.
  • ZTE's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:ZTCO.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:ZTCO.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 28.2%
OTCPK:ZTCO.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 13%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 17.1%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:ZTCO.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:ZTCO.Y Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 146,358 18,214 12,837 1
2022-12-31 137,179 12,872 10,187 1
2021-12-31 129,859 14,268 7,304 10
2020-12-31 116,707 9,486 6,067 12
2019-12-31 95,401 8,910 4,284 11
OTCPK:ZTCO.Y Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 80,189 -7,784 -714
2018-12-31 85,513 -9,215 -6,984
2018-09-30 91,002 168 -6,596
2018-06-30 94,238 6,380 -5,549
2018-03-31 110,597 8,020 -2,053
2017-12-31 108,815 7,220 4,568
2017-09-30 106,249 870 -1,312
2017-06-30 107,486 -1,301 -1,831
2017-03-31 105,119 344 -2,218
2016-12-31 101,233 5,260 -2,357
2016-09-30 103,227 8,269 3,463
2016-06-30 102,045 8,252 3,359

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ZTE's earnings are expected to grow significantly at over 20% yearly.
  • ZTE's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:ZTCO.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from ZTE Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:ZTCO.Y Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.83 2.01 1.62 10.00
2020-12-31 1.44 1.63 1.30 12.00
2019-12-31 1.10 1.29 0.93 12.00
OTCPK:ZTCO.Y Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 -0.17
2018-12-31 -1.67
2018-09-30 -1.59
2018-06-30 -1.32
2018-03-31 -0.49
2017-12-31 1.09
2017-09-30 -0.31
2017-06-30 -0.44
2017-03-31 -0.55
2016-12-31 -0.57
2016-09-30 0.84
2016-06-30 0.81

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ZTE is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ZTE's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ZTE has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ZTE performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ZTE's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ZTE does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare ZTE's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare ZTE's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
ZTE's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ZTE Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:ZTCO.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 80,188.62 -713.82 16,635.36 11,294.41
2018-12-31 85,513.15 -6,983.66 16,257.64 10,905.58
2018-09-30 91,001.72 -6,596.20 16,982.42 12,290.70
2018-06-30 94,238.45 -5,548.89 17,354.40 11,346.19
2018-03-31 110,597.00 -2,052.67 17,136.97 12,586.09
2017-12-31 108,815.27 4,568.17 17,437.91 12,962.25
2017-09-30 106,248.92 -1,311.65 17,207.07 12,071.15
2017-06-30 107,486.48 -1,830.95 16,918.63 12,379.57
2017-03-31 105,119.29 -2,218.30 17,197.39 12,790.08
2016-12-31 101,233.18 -2,357.42 17,061.79 12,762.06
2016-09-30 103,227.15 3,462.59 16,636.50 13,797.96
2016-06-30 102,044.90 3,358.70 15,972.77 13,767.79
2016-03-31 101,046.11 3,399.45 15,862.34 12,682.37
2015-12-31 100,186.39 3,207.89 15,590.63 12,200.54
2015-09-30 91,193.81 3,406.23 13,877.46 10,735.65
2015-06-30 89,672.75 3,120.95 13,840.35 10,373.90
2015-03-31 83,417.32 2,894.32 12,863.61 9,599.80
2014-12-31 81,471.28 2,633.57 12,794.86 9,008.54
2014-09-30 79,476.93 2,637.58 13,120.02 8,810.81
2014-06-30 75,426.25 2,175.85 13,340.30 7,882.88
2014-03-31 76,228.57 1,774.84 13,352.07 7,551.04
2013-12-31 75,233.72 1,357.66 13,150.98 7,383.89
2013-09-30 77,942.88 -588.90 12,633.93 7,308.08
2013-06-30 78,981.76 -2,775.83 13,427.04 8,431.32
2013-03-31 83,563.74 -2,786.84 13,469.28 8,651.06
2012-12-31 84,118.87 -2,840.96 13,641.23 8,829.19
2012-09-30 89,149.33 -708.84 13,818.08 9,526.93
2012-06-30 91,883.24 1,535.77 14,008.73 8,853.58

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if ZTE has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if ZTE has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if ZTE improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess ZTE's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ZTE has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ZTE's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ZTE's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ZTE is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ZTE's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ZTE's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ZTE Company Filings, last reported 1 month ago.

OTCPK:ZTCO.Y Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 32,999.57 37,311.24 30,667.07
2018-12-31 32,960.68 28,375.96 25,994.74
2018-09-30 34,375.94 23,277.23 17,147.41
2018-06-30 33,708.19 19,011.67 20,527.91
2018-03-31 36,905.60 21,214.89 26,512.30
2017-12-31 45,380.15 25,566.49 33,524.67
2017-09-30 45,006.61 30,497.85 26,182.07
2017-06-30 43,178.06 30,312.79 27,569.97
2017-03-31 41,706.96 24,879.56 29,249.33
2016-12-31 40,885.09 25,737.18 32,349.91
2016-09-30 45,577.59 24,057.92 26,913.15
2016-06-30 43,932.90 24,659.32 30,373.19
2016-03-31 43,345.97 29,991.31 37,336.64
2015-12-31 43,348.61 25,411.18 28,025.01
2015-09-30 36,031.29 28,675.51 20,486.61
2015-06-30 36,155.67 24,108.89 18,528.05
2015-03-31 34,604.96 30,200.93 18,912.88
2014-12-31 26,292.50 32,096.01 18,115.87
2014-09-30 25,484.67 25,034.05 14,885.92
2014-06-30 24,826.52 29,048.07 17,624.41
2014-03-31 24,422.49 32,418.46 18,665.47
2013-12-31 23,625.69 32,547.53 21,120.49
2013-09-30 22,710.15 33,658.89 15,835.47
2013-06-30 22,775.53 35,558.48 17,426.50
2013-03-31 22,949.64 32,304.86 16,058.38
2012-12-31 22,592.84 37,750.28 24,232.72
2012-09-30 24,140.04 35,428.22 15,176.39
2012-06-30 26,686.00 37,078.21 21,778.54
  • ZTE's level of debt (113.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (132.6% vs 113.1% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • ZTE is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess ZTE's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ZTE has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from ZTE dividends. Estimated to be 1.07% next year.
If you bought $2,000 of ZTE shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate ZTE's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate ZTE's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:ZTCO.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:ZTCO.Y Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.45 5.00
2020-12-31 0.31 5.00
2019-12-31 0.16 3.00
OTCPK:ZTCO.Y Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2017-10-26 0.000 0.000
2017-10-18 0.000 0.000
2017-08-24 0.000 0.000
2017-07-19 0.000 0.000
2017-04-17 0.000 0.000
2017-04-07 0.000 0.000
2017-03-23 0.000 0.000
2016-04-07 0.250 1.675
2015-05-29 0.167 0.935
2014-07-17 0.025 0.169
2013-10-22 0.000 0.000
2013-08-21 0.000 0.000
2013-07-23 0.000 0.000
2013-04-26 0.000 0.000
2013-04-15 0.000 0.000
2012-07-11 0.167 2.004
2011-05-18 0.208 1.413
2010-06-21 0.139 0.768

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as ZTE has not reported any payouts.
  • Unable to verify if ZTE's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of ZTE's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as ZTE has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4x coverage).
X
Income/ dividend checks
We assess ZTE's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ZTE afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ZTE has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ziyang Xu
AGE 46
TENURE AS CEO 0.8 years
CEO Bio

Mr. Ziyang Xu has been President of ZTE Corp. since July 5, 2018 and its Executive Director sine August 28, 2018. Since July 2018, Mr. Xu has been director of ZTE Microelectronics Technology Company Limited, a subsidiary of the Company, and he has been chairman of the ZTE Microelectronics Technology Company Limited since August 2018. Mr. Xu joined the ZTE Corp. in 1998, and served successively as programmer, section chief of GSM product line development department of Nanjing Research and Development Center, head of PS development department, deputy general manager of core network, and product general manager of core network of the ZTE Corp, from 1998 to 2011. From 2011 to 2013, Mr. Xu acted as general manager of MKT fourth branch of ZTE Corp in charge of European and United States systems products. From 2014 to 2016, Mr. Xu acted as general manager of ZTE Services Deutschland Gmbh, a subsidiary of the ZTE Corp. From 2016 to July 2018, Mr. Xu has been acting concurrently as assistant to the President of the ZTE Corp. and product general manager of the CCN core network product line products of wireless operation department of the ZTE Corp. Mr. Xu has many years of operational and management experience in the telecommunication industry. He is graduated from University of Electronic Science and Technology of China with a bachelor’s degree in engineering majoring in physical electronics technology in 1994.

CEO Compensation
  • Insufficient data for Ziyang to compare compensation growth.
  • Insufficient data for Ziyang to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the ZTE management team in years:

2.6
Average Tenure
48
Average Age
  • The tenure for the ZTE management team is about average.
Management Team

Qingfeng Fan

TITLE
Senior Vice President
AGE
50
TENURE
11.2 yrs

Cao Wei

TITLE
Secretary
AGE
42
TENURE
3.1 yrs

Zixue Li

TITLE
Chairman
AGE
54

Ziyang Xu

TITLE
President & Executive Director
AGE
46
TENURE
0.8 yrs

Ying Li

TITLE
EVP & CFO
AGE
40
TENURE
1.3 yrs

Matthew Bell

TITLE
Chief Export Compliance Officer and Legal Counsel
TENURE
2.6 yrs

Wang Dong

TITLE
Senior VP
TENURE
1.1 yrs

Xiaoyue Xia

TITLE
Deputy Head of Dept of HR
AGE
43

Weimin Ye

TITLE
Senior Vice President and Principal Deputy General Manager of the Handset Product Division
AGE
52

Jie Chen

TITLE
Senior Vice President
AGE
60
TENURE
17.3 yrs
Board of Directors Tenure

Average tenure and age of the ZTE board of directors in years:

0.9
Average Tenure
48.5
Average Age
  • The average tenure for the ZTE board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ziyang Xu

TITLE
President & Executive Director
AGE
46
TENURE
0.8 yrs

Xiaoyue Xia

TITLE
Deputy Head of Dept of HR
AGE
43
TENURE
3.3 yrs

Junying Gu

TITLE
Executive Vice President & Executive Director
AGE
51
TENURE
0.9 yrs

Daxiong Xie

TITLE
Chairman of Supervisory Committee
COMPENSATION
CN¥3M
AGE
55
TENURE
6.2 yrs

Zixue Li

TITLE
Chairman
AGE
54
TENURE
0.9 yrs

Manli Cai

TITLE
Independent Non-Executive Director
AGE
45
TENURE
0.9 yrs

Bao Yuming

TITLE
Independent Non-Executive Director
AGE
46
TENURE
0.9 yrs

Ng Gordon

TITLE
Independent Non-Executive Director
AGE
54
TENURE
0.9 yrs

Rong Fang

TITLE
Non-Executive Director
AGE
54
TENURE
0.9 yrs

Buqing Li

TITLE
Non-Executive Director
AGE
46
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess ZTE's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ZTE has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

ZTE Corporation provides telecommunications and information technology (IT) services worldwide. It operates through three segments: Carriers’ Networks, Consumer Business, and Government and Corporate Business. The company offers wireless products, such as base stations, network optimization tools, controllers, GoTa products, network management products, and wireless infrastructure products; and bearer network products, including optical transmission, data transmission, and microwave products. It also provides cloud computing and IT products that include cloud infrastructure, cloud platform, and cloud hardware, as well as home media center products; and cloud core network products, which comprise 5G Cloud ServCore, packet core, IP multimedia subsystem and CS, user data convergence, and intelligent OSS products. In addition, the company offers fixed access products, including optical access and CPE products; and energy products, such as telecom energy, government and enterprise energy, and ZEGO IDC. Further, it provides consulting, customer support, and learning services. The company was founded in 1985 and is headquartered in Shenzhen, the People’s Republic of China.

Details
Name: ZTE Corporation
ZTCO.Y
Exchange: OTCPK
Founded: 1985
CN¥17,446,628,369
4,192,671,843
Website: http://www.zte.com.cn
Address: ZTE Corporation
No. 55, Hi-tech Road South,
Shenzhen,
Guangdong Province, 518057,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SZSE 000063 Domestic Shares Shenzhen Stock Exchange CN CNY 22. Sep 1998
XSEC 000063 Domestic Shares Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect CN CNY 22. Sep 1998
OTCPK ZTCO.Y UNSPONSORED ADR Pink Sheets LLC US USD 13. Oct 2008
SEHK 763 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 09. Dec 2004
OTCPK ZTCO.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 09. Dec 2004
DB FZM Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 09. Dec 2004
SHSC 763 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 09. Dec 2004
SZSC 763 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 09. Dec 2004
WBAG FZM Foreign Shares-Foreign Listed Wiener Boerse AG AT EUR 09. Dec 2004
Number of employees
Current staff
Staff numbers
68,240
ZTE employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 02:07
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.