Zicom Group Limited (ZGL) AI Stock Analysis

• Market Cap: AU$29.10M
• Dividend Yield: N/A
• Average Volume (3M): 28.77K
• Price to Earnings (P/E): 3.2
• Beta (1Y): -746972.30
• Revenue Growth: 13.43%
• EPS Growth: 22.19%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.01
• Shares Outstanding: 215,580,220
• 10 Day Avg. Volume: 36,440
• 30 Day Avg. Volume: 28,770
• PEG Ratio: 0.08
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 1.04
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: AU$0.14 ▼(-12.50% Downside)
• Action: Downgraded Date: 02/28/26
• Date: Action: Downgraded 02/28/26

The score is driven mainly by solid underlying financials (good revenue growth, strong gross margins, and improved leverage) tempered by meaningful cash flow deterioration. Technical signals are weak with the price below major moving averages, while valuation is a clear positive due to the very low P/E.

Positive Factors

Strong gross margin

A 44.23% gross margin indicates durable pricing power or efficient cost structure in its machinery business. Sustained high gross margins provide a buffer against input cost inflation, support reinvestment in products and service capabilities, and underpin long-term margin sustainability.

Improved leverage & capital structure

Lower leverage (debt/equity 0.43) and an equity ratio near 45% strengthen financial flexibility. A healthier balance sheet reduces refinancing risk, enables strategic capex or M&A, and improves resilience to cyclical industry downturns, supporting durable operational continuity.

Positive revenue trend and ROE

Consistent revenue growth (~4.7%) with a mid‑teens ROE reflects steady demand and competent capital use. This combination points to sustainable top-line expansion and acceptable returns on equity, which are critical for long-term earnings stability and shareholder value creation.

Negative Factors

Sharp free cash flow decline

A >200% drop in free cash flow growth signals deterioration in cash generation that can be structural if driven by working capital shifts or capex. Weak FCF constrains organic investment, dividends, and deleveraging, increasing reliance on external financing over the medium term.

Weak operating cash conversion

Operating cash flow covers only ~24% of reported net income, implying earnings quality and conversion issues. Persistent low cash conversion raises concern about the sustainability of reported profits and limits internal funding for growth or debt reduction across multiple quarters.

Modest net profitability and earnings pressure

A single-digit net margin and a significant negative EPS growth rate indicate constrained bottom-line performance. Structural margin pressure or volatile earnings reduce free cash flow potential and make long-term planning harder, weakening capacity to scale returns or fund strategic initiatives.

Zicom Group Limited Business Overview & Revenue Model

Company Description

Zicom Group Limited, together with its subsidiaries, manufactures and sells marine deck machinery, fluid regulating and metering stations, transit concrete mixers, and geotechnical equipment in Singapore. It operates through Green Energy, Gas & Marine Equipment; Construction Equipment; and Precision Engineering & Technologies segments. The Green Energy, Gas & Marine Equipment segment designs and supplies LNG propulsion systems, gas metering stations, compressor stations, and gas processing plants, and related equipment, parts, and services, as well as deck machinery, which include winches, windlasses, capstans, deck cranes, derricks, cable laying and lifeboat davits, shark jaws, and towing pins used in deep-sea vessels. The Construction Equipment segment provides concrete mixers and foundation equipment, including vibratory piling and impact piling hammers, boring machines, and vibroflots, as well as equipment rental, parts, and related services. This segment also supplies hydraulic drive systems, parts, and services. The Precision Engineering & Technologies segment manufactures and supplies precision and automation equipment comprising flip chip bonders, medtech equipment, medical consumables, and engineering services. Zicom Group Limited is headquartered in Singapore.

How the Company Makes Money

Zicom Group Limited generates revenue through multiple streams, including the sale of technology products, project-based engineering services, and ongoing maintenance and support contracts. The company partners with key players in the telecommunications and defense sectors to deliver integrated solutions, which often involve long-term contracts that provide a steady flow of income. Additionally, ZGL benefits from government contracts and tenders, enhancing its revenue stability. The company's focus on innovation and customer-centric solutions also helps in acquiring new business opportunities and maintaining existing client relationships, further contributing to its earnings.

Zicom Group Limited Financial Statement Overview

Summary

Income statement strength (revenue growth 4.68% and strong gross margin 44.23%) and improved leverage (debt-to-equity 0.43) are positives, but profitability is modest (net margin 5.73%) and cash flow is the key weakness with sharply lower free cash flow growth (-219.74%) and low operating cash flow to net income (0.24).

Income Statement

Zicom Group Limited has shown a positive revenue growth rate of 4.68% in the most recent year, indicating a steady upward trajectory. The gross profit margin of 44.23% is strong, reflecting effective cost management. However, the net profit margin is relatively low at 5.73%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, indicating stable operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.43, showing a reduction in leverage and a stronger equity position. Return on equity is reasonable at 12.07%, indicating effective use of shareholder funds. The equity ratio of 45.49% suggests a solid capital structure, though there is potential to further strengthen equity.

Cash Flow

Free cash flow has decreased significantly, with a growth rate of -219.74%, highlighting potential cash flow management issues. The operating cash flow to net income ratio is low at 0.24, indicating that cash generation from operations is not fully supporting net income. However, the free cash flow to net income ratio is healthy at 0.93, suggesting that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	126.45M	161.49M	135.70M	104.51M	90.22M	89.06M
Gross Profit	41.08M	71.43M	57.65M	1.47M	2.35M	9.84M
EBITDA	15.31M	15.93M	14.98M	-3.06M	-3.62M	8.27M
Net Income	8.98M	9.26M	7.32M	-9.30M	-8.61M	-1.12M
Balance Sheet
Total Assets	150.67M	168.66M	153.59M	133.33M	138.16M	124.63M
Cash, Cash Equivalents and Short-Term Investments	31.47M	18.50M	13.61M	14.06M	21.29M	20.14M
Total Debt	27.20M	33.08M	44.93M	40.81M	38.97M	27.36M
Total Liabilities	72.42M	92.26M	91.48M	80.37M	77.82M	59.43M
Stockholders Equity	78.58M	76.72M	62.31M	53.07M	60.25M	65.04M
Cash Flow
Free Cash Flow	55.21M	18.14M	4.79M	-5.53M	-6.54M	25.80M
Operating Cash Flow	56.58M	19.41M	6.57M	-4.44M	-5.60M	27.30M
Investing Cash Flow	-506.66K	-1.21M	-1.82M	-1.09M	-917.67K	-1.49M
Financing Cash Flow	-40.42M	-13.41M	1.63M	-1.16M	4.05M	-20.09M

Zicom Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ZGL, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 17380.36, below the 50-day MA of 7252.23, and below the 200-day MA of 1813.16, indicating a bearish trend. The MACD of -1620.76 indicates Positive momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 27.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ZGL.

Zicom Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WWG	74 Outperform	AU$59.40M	4.98	20.77%	4.55%	66.80%	625.00%
ZGL	65 Neutral	AU$29.10M	3.23	13.07%	―	13.43%	22.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VEE	54 Neutral	AU$90.98M	-1.38	5.66%	1.28%	-14.88%	-56.89%
EMB	50 Neutral	AU$17.44M	7.14	4.57%	4.32%	-15.54%	-26.61%
DEM	49 Neutral	AU$32.01M	-16.21	-16.00%	―	11.53%	46.15%
MSI	43 Neutral	AU$408.91K	0.30	―	―	-55.07%	―

Zicom Group Limited Corporate Events

Zicom Revenue Slides but Expands Asian Engineering and Marine Operations

Zicom Group Limited reported a sharp contraction in revenue for the half year ended 31 December 2025, with sales falling 37.73% to S$44.4 million compared with the prior corresponding period, while net profit attributable to members slipped a more modest 8.16% to S$2.39 million. The company did not declare an interim dividend, but improved its net tangible assets per security by 6.37%, and bolstered its operational capabilities by establishing a Malaysian precision engineering subsidiary and a marine services unit in China, signalling a strategic push to enhance competitiveness and service offerings despite softer trading conditions.

The incorporation of Sysmac Integration Technologies Sdn. Bhd. in Malaysia is aimed at strengthening Zicom’s precision engineering business amid a challenging revenue environment, potentially positioning the group to capture higher-value manufacturing opportunities. In parallel, the creation of Zicom Marine Services Co., Ltd. in China is designed to deepen the group’s presence in marine services, which may support future growth and diversify income streams for stakeholders as regional demand evolves.

The most recent analyst rating on (AU:ZGL) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on Zicom Group Limited stock, see the AU:ZGL Stock Forecast page.