ZTEST Electronics (ZTE) AI Stock Analysis

• Market Cap: C$8.91M
• Dividend Yield: N/A
• Average Volume (3M): 73.56K
• Price to Earnings (P/E): 5.1
• Beta (1Y): -1.04
• Revenue Growth: 23.10%
• EPS Growth: 25.40%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 80
• Industry: Hardware, Equipment & Parts
• EPS (TTM): <0.01
• Shares Outstanding: 37,145,820
• 10 Day Avg. Volume: 34,440
• 30 Day Avg. Volume: 73,555
• PEG Ratio: -0.24
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.86
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

ZTEST Electronics shows strong financial performance with robust profitability and low leverage, which supports a solid foundation for growth. However, technical analysis indicates bearish sentiment, potentially affecting short-term stock performance. Valuation metrics show the stock is undervalued, offering opportunities for long-term investors. Corporate events reveal a mixed impact with positive developments like share buybacks and strategic reviews, offset by recent revenue declines.

ZTEST Electronics Business Overview & Revenue Model

Company Description

ZTEST Electronics (ZTE) is a multinational telecommunications equipment and systems company headquartered in China. The company operates in the sectors of telecommunications, enterprise networks, and consumer electronics. ZTE is known for its comprehensive product portfolio, which includes wireless, exchange, access, optical transmission, and data telecommunications gear, along with mobile phones, tablets, and networking equipment for both enterprises and consumers.

How the Company Makes Money

ZTE generates revenue through the sale and distribution of its telecommunications equipment and consumer electronics. The company's primary revenue streams include the sale of mobile devices, such as smartphones, to consumers and the provision of telecommunications infrastructure equipment to enterprise and network operators globally. ZTE also earns from providing managed services and solutions tailored to specific enterprise needs, including cloud computing and IoT solutions. Significant partnerships with telecom operators and technology companies further bolster its revenue, allowing for expanded market reach and co-development of new technologies. The company is also involved in research and development, often driving innovation in 5G technology, which contributes to its competitive positioning and financial performance.

ZTEST Electronics Financial Statement Overview

Summary

ZTEST Electronics has demonstrated strong financial performance. The income statement shows significant revenue growth and strong profitability with a net profit margin of 16.9%. The balance sheet reflects a solid financial position with a low debt-to-equity ratio and a high equity ratio, indicating financial stability. Cash flow statements reveal robust cash flow generation supporting reinvestment and growth.

Income Statement

ZTEST Electronics has shown significant improvement in its financial performance over the past periods. The company's gross profit margin for TTM is approximately 42.1%, and the net profit margin is 16.9%, indicating strong profitability. Revenue growth has been substantial, with a 67.9% increase from 2023 to 2024. Both EBIT and EBITDA margins are healthy at 14.1% and 27.1% respectively, demonstrating efficient operations.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.06 for TTM, indicating low leverage. The return on equity (ROE) stands at 31.1%, showing effective use of equity to generate profits. The equity ratio is robust at 71.4%, highlighting financial stability. The company's low debt levels and high equity provide a strong foundation for future growth.

Cash Flow

ZTEST Electronics' cash flow statements show a robust free cash flow growth of 111.0% from 2023 to 2024. The operating cash flow to net income ratio is 1.71, indicating healthy cash generation relative to profits. The free cash flow to net income ratio is also strong at 1.28, suggesting efficient cash utilization. The company's cash flow position supports its financial health and potential for reinvestment.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
9.52M	9.76M	5.70M	4.42M	4.01M	3.89M
	Gross Profit
4.00M	3.92M	1.74M	1.13M	1.23M	1.23M
	EBIT
1.63M	2.17M	224.87K	-223.43K	52.06K	-38.68K
	EBITDA
2.58M	2.60M	492.62K	19.87K	218.97K	-580.26K
	Net Income Common Stockholders
1.61M	1.75M	165.27K	-266.88K	45.76K	-818.74K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.37M	2.78M	232.88K	267.64K	557.01K	220.40K
	Total Assets
5.65M	7.01M	3.94M	3.08M	3.12M	1.81M
	Total Debt
496.68K	437.12K	839.03K	948.79K	1.16M	119.30K
	Net Debt
-874.33K	-2.34M	606.16K	681.15K	599.80K	-101.11K
	Total Liabilities
2.89M	2.51M	2.83M	2.20M	2.12M	1.04M
	Stockholders Equity
2.76M	4.50M	1.11M	883.16K	1.00M	764.70K
Cash Flow		Free Cash Flow
2.07M	1.75M	93.85K	-202.88K	-57.71K	268.88K
	Operating Cash Flow
2.75M	2.43M	93.85K	-195.21K	355.51K	273.02K
	Investing Cash Flow
-685.57K	-687.37K	0.00	-7.67K	-413.22K	-4.14K
	Financing Cash Flow
989.03K	797.37K	-128.61K	-86.49K	394.32K	-115.11K

ZTEST Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ZTE, the sentiment is Positive. The current price of 0.22 is below the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.22, and below the 200-day MA of 0.30, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ZTE.

ZTEST Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZTE	72 Outperform	C$8.91M	5.06	45.15%	―	23.10%	25.40%
SYZ	68 Neutral	C$211.68M	―	-3.13%	0.42%	-13.99%	-421.95%
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%
ELEC	39 Underperform	C$14.60M	―	-53.94%	―	-81.22%	-0.48%
VOLT	27 Underperform	C$541.79K	―	78.01%	―	―	90.94%

ZTEST Electronics Corporate Events

ZTEST Electronics Announces Share Buyback to Enhance Shareholder Value

ZTEST Electronics Inc. has announced its intention to initiate a normal course issuer bid (NCIB) to purchase up to 2,727,923 common shares, representing about 10% of its public float, over a 12-month period starting April 1, 2025. This move is aimed at enhancing long-term shareholder value by purchasing shares that the company believes are undervalued. The shares will be acquired on the open market through the Canadian Securities Exchange and will be cancelled upon purchase, with the process managed by Integral Wealth Securities Ltd. The company sees this strategy as an effective use of its financial resources.

ZTEST Electronics Reports Q2 2025 Revenue Decline Amid Growth Challenges

ZTEST Electronics Inc. reported a decline in Q2 2025 revenues to $2,080,861, marking the end of an eleven-quarter streak of year-over-year growth. Despite a 15% drop in revenue, the company managed a slight increase in gross margin percentage. Net income for the quarter was $208,604, trailing the previous year’s figures, and basic EBITDA per share decreased due to a 29% increase in outstanding shares. The company remains financially stable with strong liquidity and low leverage, and it is exploring investment opportunities to enhance growth.