Zotefoams (ZTF) AI Stock Analysis

• Market Cap: £219.54M
• Dividend Yield: 1.66%
• Average Volume (3M): 76.93K
• Price to Earnings (P/E): 312.5
• Beta (1Y): 1.32
• Revenue Growth: 15.56%
• EPS Growth: -92.94%
• Country: UK
• Employees: 590
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.19
• Shares Outstanding: 49,246,235
• 10 Day Avg. Volume: 64,297
• 30 Day Avg. Volume: 76,930
• PEG Ratio: 0.43
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 13.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £570.00
• Price Target Upside: 24.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: 476.00p ▲(3.93% Upside)

Zotefoams' stock score is driven by strong technical momentum and solid cash flow performance. However, high valuation metrics and profitability challenges weigh down the score. The absence of earnings call insights and corporate events means these factors do not influence the score.

Zotefoams Business Overview & Revenue Model

Company Description

Zotefoams (ZTF) is a leading manufacturer of innovative, high-performance foam products, primarily serving the aerospace, automotive, medical, and industrial sectors. The company specializes in producing cross-linked polyethylene (PEX) and other advanced materials using its proprietary manufacturing processes, which allow for lightweight and durable solutions. Zotefoams is committed to sustainability and innovation, developing products that meet the stringent demands of various applications while minimizing environmental impact.

How the Company Makes Money

Zotefoams generates revenue through the sale of its foam products across multiple sectors, including aerospace, automotive, and medical. The company operates a diversified revenue model that includes direct sales to manufacturers, distributors, and end-users. Key revenue streams come from custom foam solutions tailored to specific customer needs, as well as standard product lines. Zotefoams has established significant partnerships with major companies in its target industries, enhancing its market presence and enabling access to new customer bases. Additionally, the company's focus on research and development fosters innovation, allowing it to introduce new products that capture market demand and drive sales growth.

Zotefoams Financial Statement Overview

Summary

Zotefoams shows strong revenue growth and a robust balance sheet, but faces profitability challenges with a net loss and declining EBIT margins. Cash flow performance is strong, indicating good operational cash generation and improved free cash flow.

Income Statement

The recent annual report shows a decline in profitability with a negative net income, resulting in a negative net profit margin. However, the company has demonstrated revenue growth of 16.39% from the previous year, indicating a positive trajectory in sales. Gross profit margin is stable, but EBIT and EBITDA margins have decreased, reflecting pressure on operational efficiency.

Balance Sheet

The balance sheet remains strong with a healthy equity ratio of 62.56%, indicating a solid capital structure. However, the debt-to-equity ratio has increased slightly to 0.40, suggesting a rise in leverage. Return on equity has turned negative due to the net loss, which is a concern for profitability.

Cash Flow

Cash flow from operations has significantly improved, supporting a positive free cash flow. The free cash flow to net income ratio is unfavorable due to the negative net income, but the operating cash flow to net income ratio indicates operational cash generation capability. The free cash flow growth rate is strong, reflecting improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.16M	147.79M	126.97M	127.37M	100.75M	82.65M
Gross Profit	49.33M	46.13M	41.05M	38.73M	26.57M	27.78M
EBITDA	13.95M	12.28M	23.41M	22.16M	15.67M	15.72M
Net Income	712.00K	-2.75M	9.24M	10.01M	4.38M	7.16M
Balance Sheet
Total Assets	178.73M	174.75M	175.61M	170.36M	159.38M	158.22M
Cash, Cash Equivalents and Short-Term Investments	8.26M	10.53M	6.29M	10.59M	8.05M	8.50M
Total Debt	37.32M	43.56M	37.86M	38.41M	42.40M	44.10M
Total Liabilities	60.74M	65.39M	59.85M	60.82M	61.60M	63.85M
Stockholders Equity	117.99M	109.36M	115.76M	109.54M	97.78M	94.38M
Cash Flow
Free Cash Flow	19.70M	11.35M	-702.00K	14.03M	3.83M	-1.85M
Operating Cash Flow	32.39M	25.00M	7.78M	21.12M	10.90M	10.86M
Investing Cash Flow	-13.30M	-13.34M	-8.29M	-7.09M	-6.98M	-13.29M
Financing Cash Flow	-18.70M	-7.41M	-3.73M	-11.53M	-4.34M	3.72M

Zotefoams Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 458.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZTF, the sentiment is Positive. The current price of 458 is above the 20-day moving average (MA) of 428.30, above the 50-day MA of 412.03, and above the 200-day MA of 323.59, indicating a bullish trend. The MACD of 15.12 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZTF.

Zotefoams Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JMAT	―	£3.53B	9.93	15.96%	3.66%	-9.10%	239.75%
VCT	―	£562.74M	18.95	6.65%	9.21%	4.75%	-3.29%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ZTF	―	£219.54M	312.50	0.60%	1.66%	15.56%	-92.94%
ESNT	―	£273.08M	29.54	3.48%	2.41%	-4.71%	86.21%
ELM	―	£944.86M	-16.67	3.37%	1.36%	-11.78%	-92.61%
SYNT	―	£87.83M	-1.05	-7.26%	―	-4.41%	2.29%

Zotefoams Corporate Events

Zotefoams Strengthens Board with New Non-Executive Director Appointment

Zotefoams has announced the appointment of Jack Clarke as an independent Non-Executive Director, effective from October 28, 2025. Clarke, who brings extensive experience from his previous roles as CFO at Essentra plc and Marshalls plc, will also chair the Audit Committee following Doug Robertson’s retirement at the end of the year. This strategic leadership change aims to bolster Zotefoams’ board with Clarke’s international strategy and finance expertise, aligning with the company’s sustainable growth objectives.

The most recent analyst rating on (GB:ZTF) stock is a Hold with a £476.00 price target. To see the full list of analyst forecasts on Zotefoams stock, see the GB:ZTF Stock Forecast page.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that directors and key managerial personnel have acquired ordinary shares under the company’s Share Incentive Plan. This transaction, compliant with UK Market Abuse Regulation, reflects the company’s commitment to aligning management interests with shareholder value, potentially reinforcing stakeholder confidence.

The most recent analyst rating on (GB:ZTF) stock is a Buy with a £5.40 price target. To see the full list of analyst forecasts on Zotefoams stock, see the GB:ZTF Stock Forecast page.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that directors and persons discharging managerial responsibilities have acquired ordinary shares under the company’s Share Incentive Plan through a dividend reinvestment program. This transaction, compliant with the UK Market Abuse Regulation, reflects ongoing engagement and investment by the company’s leadership, potentially reinforcing stakeholder confidence and aligning management interests with shareholder value.

The most recent analyst rating on (GB:ZTF) stock is a Buy with a £5.40 price target. To see the full list of analyst forecasts on Zotefoams stock, see the GB:ZTF Stock Forecast page.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that directors and persons with managerial responsibilities have acquired shares through the company’s Share Incentive Plan dividend reinvestment program. This transaction reflects the company’s ongoing commitment to aligning management interests with shareholder value, potentially enhancing stakeholder confidence and reinforcing its market position.

The most recent analyst rating on (GB:ZTF) stock is a Buy with a £5.40 price target. To see the full list of analyst forecasts on Zotefoams stock, see the GB:ZTF Stock Forecast page.

Zotefoams CFO Acquires Shares Under LTIP

Zotefoams plc announced that its Group CFO, Mr. G C McGrath, acquired 20,154 ordinary shares through the vesting of a nil-cost award under the company’s Long Term Incentive Plan (LTIP) from 2020. To cover the tax liability from this vesting, Mr. McGrath sold 10,376 shares at £4.029 each and retained 11,655 shares. This transaction reflects the completion of a performance and holding period requirement, highlighting the company’s adherence to its incentive plan and potentially impacting shareholder perceptions and market confidence.

The most recent analyst rating on (GB:ZTF) stock is a Buy with a £5.40 price target. To see the full list of analyst forecasts on Zotefoams stock, see the GB:ZTF Stock Forecast page.

Zotefoams Announces CFO Succession with Nick Wright’s Appointment

Zotefoams has announced the appointment of Nick Wright as the new Chief Financial Officer, effective from November 1, 2025, following the retirement of Gary McGrath. This leadership change is expected to support Zotefoams’ strategic objectives and strengthen its position in the global foam technology market.

The most recent analyst rating on (GB:ZTF) stock is a Buy with a £5.40 price target. To see the full list of analyst forecasts on Zotefoams stock, see the GB:ZTF Stock Forecast page.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that its directors and persons discharging managerial responsibilities have acquired shares under the company’s Share Incentive Plan. This move, involving the purchase of partnership shares and allocation of matching shares, underscores the company’s commitment to aligning management interests with shareholder value. The transactions were conducted in compliance with the UK Market Abuse Regulation, reflecting transparency and adherence to regulatory standards.

The most recent analyst rating on (GB:ZTF) stock is a Buy with a £5.40 price target. To see the full list of analyst forecasts on Zotefoams stock, see the GB:ZTF Stock Forecast page.

Zotefoams Unveils Global Innovation Initiatives and Leadership Appointment

Zotefoams has announced significant innovation initiatives, including the establishment of a Global Innovation Hub in the UK and a Footwear Innovation Centre in South Korea, alongside the appointment of Simon Comer as Chief Strategy & Innovation Officer. These initiatives, supported by a £6.8 million investment, aim to enhance Zotefoams’ innovation capabilities and competitive positioning, particularly in the rapidly growing athletic footwear market. The Global Innovation Hub will focus on developing advanced foam solutions, while the Footwear Innovation Centre will target rapid development in the Asian market, strengthening Zotefoams’ global reach and supporting its growth strategy.

The most recent analyst rating on (GB:ZTF) stock is a Buy with a £5.40 price target. To see the full list of analyst forecasts on Zotefoams stock, see the GB:ZTF Stock Forecast page.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that its directors and persons discharging managerial responsibilities have acquired shares under the company’s Share Incentive Plan. The transactions involved the purchase of partnership shares and the allocation of matching shares, reflecting the company’s commitment to aligning management interests with shareholder value. This move is in accordance with the UK Market Abuse Regulation and highlights Zotefoams’ strategic focus on fostering a strong internal ownership culture.

Zotefoams Expands Asian Footprint with New Joint Venture and Leadership Appointment

Zotefoams has entered a joint venture with Seoheung Co. Ltd. to establish a new manufacturing facility in Vietnam, aimed at enhancing its presence in the Asian market. The collaboration de-risks Zotefoams’ investment by sharing financial and operational responsibilities, while also benefiting from Seoheung’s local manufacturing expertise. This move supports Zotefoams’ strategic transition to producing advanced 3D preforms, promising improved customer relationships and sustainability metrics. Additionally, the appointment of Brandon Thomas as Managing Director – Asia underscores the region’s importance to Zotefoams’ growth ambitions.

Zotefoams Achieves Record H1 2025 Results with Strategic Advancements

Zotefoams plc has reported record interim results for the first half of 2025, with a 9% increase in revenue to £77.4 million and a 37% rise in profit before tax to £11.4 million. The company has made significant strategic progress by aligning its commercial functions to focus on three global market verticals and advancing its manufacturing capabilities, including a new facility in Vietnam in partnership with Seoheung Co. Ltd. This strategic shift and operational efficiency improvements have bolstered Zotefoams’ market positioning and are expected to drive sustainable growth, despite anticipated moderation in certain sectors.