Zicom Group Limited (ZGL) AI Stock Analysis

• Market Cap: AU$17.59M
• Dividend Yield: N/A
• Average Volume (3M): 28.82K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 0.45
• Revenue Growth: 34.16%
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): 0.06
• Shares Outstanding: 214,560,010
• 10 Day Avg. Volume: 2,509
• 30 Day Avg. Volume: 28,820
• PEG Ratio: -0.12
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.75
• 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

• Rating: 65 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Zicom Group Limited's overall score is primarily driven by its financial performance, which shows strong recovery and improvement. The stock's low P/E ratio suggests undervaluation, although mixed technical signals and past financial volatility present caution. The absence of earnings call insights and corporate events limits additional context.

Zicom Group Limited Business Overview & Revenue Model

Company Description

Zicom Group Limited (ZGL) is a diversified engineering and manufacturing company with a strong presence in multiple sectors, including marine, oil and gas, construction, and precision engineering. The company specializes in the design, engineering, and manufacturing of a wide range of industrial machinery and equipment, as well as providing related services. With a commitment to innovation and quality, ZGL serves a global clientele, offering solutions that enhance operational efficiency and productivity across various industries.

How the Company Makes Money

Zicom Group Limited makes money through a diverse revenue model that includes the sale of engineered products, systems, and services in its core sectors. Key revenue streams for ZGL include the manufacturing and sale of marine deck machinery, oil and gas equipment, construction machinery, and precision engineering components. The company also generates income from service contracts, maintenance, and technical support for its products. Additionally, ZGL benefits from strategic partnerships and collaborations that expand its market reach and enhance its technological capabilities, contributing to its earnings.

Zicom Group Limited Financial Statement Overview

Summary

Zicom Group Limited has demonstrated a strong recovery with notable improvements in profitability, revenue growth, and cash flow generation. The income statement shows a significant increase in gross and net profit margins, while the balance sheet and cash flow statements indicate a balanced leverage profile and positive cash generation. Past volatility and leverage remain risks but the company is on a positive trajectory.

Income Statement

Zicom Group Limited has shown a strong recovery in its income statement metrics. The gross profit margin improved significantly from a low in 2023 to 42.5% in 2024. Net profit margin shifted from negative in previous years to 5.4% in 2024, indicating profitability. Revenue growth rate was impressive at 34.8% from 2023 to 2024. Additionally, EBIT and EBITDA margins improved considerably. However, historical losses and volatile margins in prior years are notable weaknesses.

Balance Sheet

The balance sheet of Zicom Group Limited reflects a stable equity position with stockholders' equity growing over the years to $62.3M in 2024. The debt-to-equity ratio is approximately 0.7, indicating a moderate level of leverage. The equity ratio stands at 40.6%, showcasing a healthy capital structure. Although the equity base is robust, the presence of significant debt remains a risk factor.

Cash Flow

Zicom Group Limited's cash flow has shown commendable improvement. The free cash flow turned positive in 2024, and the free cash flow to net income ratio indicates good cash generation relative to earnings. Operating cash flow to net income ratio is also favorable. Nonetheless, the company experienced negative operating cash flows in previous years, pointing to historical cash management challenges.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
154.27M	135.70M	100.66M	90.22M	89.06M	106.80M
	Gross Profit
66.05M	57.65M	1.47M	2.35M	9.84M	7.45M
	EBIT
31.88M	23.58M	-8.38M	-10.56M	-1.99M	-3.46M
	EBITDA
21.79M	14.98M	-1.86M	-2.34M	6.86M	8.11M
	Net Income Common Stockholders
13.51M	7.32M	-9.30M	-8.61M	-1.12M	-1.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.82M	13.61M	14.06M	21.29M	20.14M	11.98M
	Total Assets
199.54M	153.59M	133.33M	138.16M	124.63M	150.99M
	Total Debt
65.34M	44.93M	40.81M	38.97M	27.36M	45.25M
	Net Debt
54.27M	31.62M	26.75M	17.68M	7.22M	33.27M
	Total Liabilities
130.00M	91.48M	80.37M	77.82M	59.43M	83.02M
	Stockholders Equity
69.83M	62.31M	53.07M	60.25M	65.04M	67.75M
Cash Flow		Free Cash Flow
-15.15M	4.79M	-5.53M	-6.54M	25.80M	-13.88M
	Operating Cash Flow
-14.23M	6.57M	-4.44M	-5.60M	27.30M	-12.40M
	Investing Cash Flow
-2.19M	-1.78M	-1.09M	-917.67K	-1.49M	-1.44M
	Financing Cash Flow
14.37M	1.44M	-1.16M	4.05M	-20.09M	10.07M

Zicom Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ZGL, the sentiment is Neutral. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of -6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ZGL.

Zicom Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWH	80 Outperform	€1.34B	11.56	18.01%	5.98%	13.68%	24.51%
MND	76 Outperform	AU$1.74B	23.09	15.97%	3.75%	11.00%	34.97%
EHL	69 Neutral	$406.17M	6.09	10.65%	―	-11.86%	15.29%
SND	67 Neutral	AU$87.05M	8.88	18.42%	5.55%	12.06%	-8.98%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
ZGL	65 Neutral	AU$17.59M	1.29	22.75%	―	34.16%	―
ASB	54 Neutral	$2.67B	82.17	2.82%	―	3.23%	402.60%

Zicom Group Limited Corporate Events

Zicom Group Limited Sees Increase in Substantial Shareholding

Zicom Group Limited has announced a change in the substantial holding of its shares. Giok Lak Sim has increased their voting power from 50.43% to 50.57% through on-market transactions, reflecting a strategic move to consolidate control. This change in shareholding may impact the company’s decision-making process and influence its future strategic directions, potentially affecting stakeholders and market perception.

Zicom Group Director Increases Shareholding

Zicom Group Limited has announced a change in the director’s interest notice, specifically concerning Giok Lak Sim. The director has increased their direct shareholding by acquiring 306,044 ordinary shares on the market, valued at A$25,323.52, bringing the total direct shares to 14,479,303, while indirect shares remain unchanged at 94,028,360. This transaction did not occur during a closed period, indicating compliance with trading regulations.

Zicom Group Limited Announces Change in Substantial Holder Voting Power

Zicom Group Limited has announced a slight change in the voting power of its substantial holder, Giok Lak Sim. The voting power increased marginally from 50.42% to 50.43% due to recent on-market transactions. This change reflects a minor adjustment in the company’s shareholder structure, which may have implications for future corporate governance and decision-making processes.

Zicom Group Limited Announces Director’s Share Acquisition

Zicom Group Limited has announced a change in the director’s interest, specifically for Director Giok Lak Sim. The director acquired 23,457 ordinary shares on the market, increasing their direct holdings to 14,173,259 shares, while indirect holdings remain unchanged at 94,028,360 shares. This transaction, valued at A$1,781.78, reflects a minor adjustment in the director’s shareholding, with no significant impact on the company’s operations or market positioning.

Zicom Group’s Substantial Holder Increases Voting Power

Zicom Group Limited has experienced a change in the interests of a substantial holder, Giok Lak Sim, whose voting power in the company has increased from 49.64% to 50.42%. This change in voting power was due to on-market transactions conducted by Giok Lak Sim and Siew Lai Chan, involving a total consideration of A$27,770.99 for 397,025 shares. The increase in voting power signifies a strengthened position for Giok Lak Sim within the company, potentially impacting the company’s decision-making processes and strategic direction.

Zicom Group Director Increases Stake in Company

Zicom Group Limited has announced a change in the director’s interest, with Giok Lak Sim acquiring an additional 397,025 ordinary shares, bringing his direct holding to 14,149,802 shares. This acquisition, valued at A$27,770.99, was conducted through an on-market transaction and reflects the director’s increasing stake in the company, potentially signaling confidence in the company’s future prospects.