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Zotefoams
(LSE:ZTF)
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Rating:73Outperform
Price Target:
558.00 p
▲(28.28% Upside)
Action:Reiterated
Date:10/17/26
The score is driven primarily by improved financial performance in 2025 (strong profitability and better cash generation) tempered by historical volatility and higher 2025 debt. Technicals support the trend (price above key moving averages), though overbought signals raise near-term risk. Valuation is supportive with a low P/E and a modest dividend yield.
Positive Factors
Proprietary technology
The proprietary nitrogen expansion process supports differentiated closed-cell foam products with engineered performance characteristics. This can strengthen customer value, enable premium application-specific solutions, and create a durable competitive position across demanding industrial and consumer uses.
Negative Factors
Earnings volatility
The swing from a loss in 2024 to strong profit in 2025 shows that earnings remain sensitive to costs, product mix, or one-off effects. Such volatility reduces confidence in near-term profit durability and makes planning and capital allocation less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary technology
The proprietary nitrogen expansion process supports differentiated closed-cell foam products with engineered performance characteristics. This can strengthen customer value, enable premium application-specific solutions, and create a durable competitive position across demanding industrial and consumer uses.
Read all positive factors
Zotefoams (ZTF) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£232.14M
Dividend Yield1.69%
Average Volume (3M)108.67K
Price to Earnings (P/E)9.4
Beta (1Y)1.52
Revenue Growth14.35%
EPS Growth3370.14%
CountryUK
Employees815
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.50
Shares Outstanding49,646,233
10 Day Avg. Volume147,661
30 Day Avg. Volume108,671
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.51
Price to Sales (P/S)1.24
P/FCF Ratio9.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£570.00Price Target Upside31.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.4
Revenue Forecast (FY)£191.90M
Zotefoams Business Overview & Revenue Model
Company Description
Zotefoams plc, established in 1921 and headquartered in Croydon, UK, is a global leader in the manufacturing, distribution, and sale of polyolefin block foams. The company serves markets across the United Kingdom, Continental Europe, North America...
How the Company Makes Money
Zotefoams makes money primarily by manufacturing and selling high-value specialty foam materials and related engineered solutions. Revenue is generated from (1) direct sales of foam products: Zotefoams produces foams using its proprietary nitrogen...
Zotefoams Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 176.29M | 158.49M | 147.79M | 126.97M | 127.37M | 100.75M |
| Gross Profit | 59.98M | 52.90M | 46.13M | 41.05M | 38.73M | 26.57M |
| EBITDA | 35.56M | 30.71M | 12.28M | 23.41M | 22.16M | 15.67M |
| Net Income | 24.46M | 22.64M | -2.75M | 9.24M | 10.01M | 4.38M |
Balance Sheet | ||||||
| Total Assets | 241.42M | 227.09M | 174.75M | 175.61M | 170.36M | 159.38M |
| Cash, Cash Equivalents and Short-Term Investments | 13.02M | 13.98M | 10.53M | 6.29M | 10.59M | 8.05M |
| Total Debt | 62.48M | 57.01M | 43.56M | 37.86M | 38.41M | 42.40M |
| Total Liabilities | 102.36M | 97.02M | 65.39M | 59.85M | 60.82M | 61.60M |
| Stockholders Equity | 139.06M | 130.08M | 109.36M | 115.76M | 109.54M | 97.78M |
Cash Flow | ||||||
| Free Cash Flow | 15.39M | 21.54M | 11.35M | -702.00K | 14.03M | 3.83M |
| Operating Cash Flow | 28.13M | 35.50M | 25.00M | 7.78M | 21.12M | 10.90M |
| Investing Cash Flow | -39.43M | -36.93M | -13.34M | -8.29M | -7.09M | -6.98M |
| Financing Cash Flow | 15.97M | 4.92M | -7.41M | -3.73M | -11.53M | -4.34M |
Zotefoams Technical Analysis
Positive
435.00
Price Trends
451.44
Positive
445.77
Positive
419.58
Positive
Market Momentum
9.41
Positive
53.28
Neutral
19.17
Positive
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 435 is below the 20-day moving average (MA) of 468.43, below the 50-day MA of 451.44, and above the 200-day MA of 419.58, indicating a bullish trend. The MACD of 9.41 indicates Positive momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 19.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZTF.
Zotefoams Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £232.14M | 9.44 | 18.18% | 1.69% | 14.35% | 3370.14% | |
70 Outperform | £786.60M | -39.26 | -4.95% | 2.97% | -1.24% | -166.15% | |
66 Neutral | £5.09B | 64.43 | 3.65% | 3.05% | 3.36% | -43.08% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £1.06B | 19.35 | 11.29% | 1.78% | -11.73% | ― | |
53 Neutral | £320.53M | 59.68 | 2.02% | 1.85% | 6.98% | -41.36% | |
53 Neutral | £181.98M | -1.52 | -13.27% | 9.77% | -4.98% | -43.98% |
* Basic Materials Sector Average
GB:ZTF
Zotefoams
472.00
30.70
6.96%
GB:CRDA
Croda International
3,644.00
919.53
33.75%
GB:ELM
Elementis
187.20
25.84
16.01%
GB:ESNT
Essentra
113.40
19.87
21.24%
GB:SYNT
Synthomer
111.00
58.70
112.24%
GB:VCT
Victrex
903.00
319.23
54.68%
Zotefoams Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Zotefoams Executives Increase Holdings Through Share Incentive Plan
Positive
Oct 14, 2026
Zotefoams plc has disclosed director and senior management dealings in its shares under the company’s Share Incentive Plan, in line with U.K. market abuse regulations. On 12 October 2026, Group CEO Ronan Cox and Group CFO Nick Wright each bo...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Zotefoams buys Verttec to expand U.S. technical roll foam offering
Positive
Oct 13, 2026
Zotefoams has acquired Verttec LLC, a Pennsylvania-based producer of crosslinked polyethylene and EVA technical roll foams, for up to US$7.3m, funded from existing cash and debt facilities. The deal adds U.S. crosslinked roll foam capability to Zo...
DividendsRegulatory Filings and Compliance
Zotefoams Executives Receive Dividend Shares Under Incentive Plan
Neutral
Oct 13, 2026
Zotefoams has disclosed that its Share Incentive Plan trustee reinvested dividends on 6 October 2026 to acquire small numbers of ordinary shares for senior executives. Group CEO Ronan Cox received seven dividend shares and Group CFO Nick Wright re...
Regulatory Filings and Compliance
Zotefoams executives add shares through incentive plan
Neutral
Sep 18, 2026
Zotefoams has disclosed that Group CEO Ronan Cox and Group CFO Nick Wright have increased their beneficial holdings in the company through its Share Incentive Plan. On 11 September, both executives purchased partnership shares at £4.4956 each...
Business Operations and StrategyRegulatory Filings and Compliance
Zotefoams launches all-employee SAYE scheme with leadership participation
Positive
Sep 14, 2026
Zotefoams has granted options over 127,505 ordinary shares under its recently approved Save As You Earn (SAYE) all-employee share plan, with 57 eligible staff choosing to participate at an exercise price of £3.48 per share. The options are ti...
Regulatory Filings and Compliance
Zotefoams Chair Increases Stake with Modest Share Purchase
Positive
Aug 17, 2026
Zotefoams has disclosed that its chair, Lynn Drummond, purchased 2,256 ordinary shares in the company on 14 August at £4.4309 per share. Following this transaction, Drummond now holds 16,979 shares, representing about 0.03% of Zotefoams’...
Regulatory Filings and Compliance
Zotefoams Executives Add Shares Under Incentive Plan
Positive
Aug 12, 2026
Zotefoams has disclosed that Group CEO Ronan Michael Cox and Group CFO Nick Wright have acquired partnership shares and received matching shares in the company under its Share Incentive Plan. The directors bought small amounts of ordinary shares a...
Business Operations and StrategyFinancial Disclosures
Zotefoams Delivers Strong H1 Growth as Expansion and Restructuring Gather Pace
Positive
Aug 5, 2026
Zotefoams reported a strong first half to 30 June 2026, with revenue up 23% to £95.2m and adjusted operating profit rising 34% to £16.3m, driven by diversification into non-footwear markets and the first full-half contribution from its O...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Zotefoams investors back new Save As You Earn share plan
Positive
Aug 3, 2026
Zotefoams shareholders have approved the adoption of a new Save As You Earn plan at a general meeting, with 99.79% of votes cast in favour and 55.42% of the issued share capital participating. The move introduces an all-employee share ownership sc...
Business Operations and StrategyFinancial Disclosures
Zotefoams Sets Date for Interim Results and Broad Investor Outreach
Positive
Jul 22, 2026
Zotefoams plc, a leading producer of high-performance foam materials for industrial and commercial applications, operates in specialized manufacturing markets where advanced engineered foams underpin its competitive positioning. The Group’s ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.