Ztest Electronics, Inc. (ZTE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Evertz Technologies Ltd.

Ztest Electronics, Inc.

MDA Ltd.

Hapbee Technologies, Inc.

Ynvisible Interactive, Inc.

Carbeeza, Inc.

Why is Ztest Electronics, Inc. ?

Flat results in Dec 24

NET SALES(Q) At CAD 2.08 has Fallen at -15.89%
OPERATING PROFIT(Q) Lowest at CAD 0.38
OPERATING PROFIT MARGIN(Q) Lowest at 18.27 %

With ROE of 31.08%, it has a fair valuation with a 1.47 Price to Book Value

Over the past year, while the stock has generated a return of 19.61%, its profits have risen by 57.8% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ztest Electronics, Inc. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ztest Electronics, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ztest Electronics, Inc.

-100.0%

0.13

83.53%

S&P/TSX 60

19.1%

1.43

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.14%

EBIT Growth (5y)

23.82%

EBIT to Interest (avg)

0.67

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

2.87

Tax Ratio

25.83%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

43.06%

ROE (avg)

20.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.97

EV to EBIT

4.31

EV to EBITDA

3.49

EV to Capital Employed

3.79

EV to Sales

0.82

PEG Ratio

Dividend Yield

ROCE (Latest)

87.97%

ROE (Latest)

24.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 2.2 MM

DEBT-EQUITY RATIO (HY)

Lowest at -65.08 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.43%

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At CAD 0.33 MM has Fallen at -39.33%

RAW MATERIAL COST(Y)

Grown by 9.23% (YoY

NET SALES(Q)

At CAD 2.11 MM has Fallen at -11.51%

NET PROFIT(Q)

At CAD 0.26 MM has Fallen at -36.28%

Here's what is working for Ztest Electronics, Inc.

Operating Cash Flow

Highest at CAD 2.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at -65.08 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.43% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Ztest Electronics, Inc.

Pre-Tax Profit

At CAD 0.33 MM has Fallen at -39.33%

over average net sales of the previous four periods of CAD 0.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Sales

At CAD 2.11 MM has Fallen at -11.51%

over average net sales of the previous four periods of CAD 2.38 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Profit

At CAD 0.26 MM has Fallen at -36.28%

over average net sales of the previous four periods of CAD 0.4 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Raw Material Cost

Grown by 9.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales