DZS (DZSIQ)
OTHER OTC:DZSIQ
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Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and effective sales strategies, positioning DZS for continued expansion in the telecommunications sector.
Negative Factors
High Leverage
High leverage poses a risk to financial stability, limiting flexibility and increasing vulnerability to economic downturns or interest rate hikes.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The significant revenue growth indicates strong market demand and effective sales strategies, positioning DZS for continued expansion in the telecommunications sector.
Read all positive factors
DZS (DZSIQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.00
Dividend YieldN/A
Average Volume (3M)128.03K
Price to Earnings (P/E)―
Beta (1Y)110.46
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees660
SectorGeneral
Sector StrengthN/A
IndustryCommunication Equipment
Share Statistics
EPS (TTM)N/A
Shares Outstanding38,789,400
10 Day Avg. Volume325,975
30 Day Avg. Volume128,025
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.75
Price to Sales (P/S)0.25
P/FCF Ratio-1.31
Enterprise Value/Market Cap1.25M
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit1.46
Enterprise Value/Ebitda-0.93
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.22
Revenue Forecast (FY)$642.60M
DZS Business Overview & Revenue Model
Company Description
DZS Inc. provides broadband network access solutions and communications platforms in the Americas, Europe, the Middle East, Africa, and Asia. It offers broadband connectivity solutions through DZS Velocity, including voice, high-definition and ult...
How the Company Makes Money
DZS makes money through the sale of its network access solutions and services to telecommunications service providers and enterprises. The company generates revenue from the sale of hardware products like optical line terminals and customer premis...
DZS Earnings Call Summary
Earnings Call Date:Nov 06, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The earnings call presented a strong revenue growth and improved gross margin, driven by strategic divestitures and successful cost-saving measures. However, increased operating expenses and continued EBITDA losses pose challenges. The company remains optimistic about future profitability and cash flow improvements.Positive Updates
Revenue Growth
The company reported $38.1 million in revenue for Q3 2024, a 23% increase quarter-over-quarter and a 67.8% increase year-over-year.
Negative Updates
Operating Expense Increase
Operating expenses increased incrementally by $1.9 million or 8.9% during Q3 2024 compared to the same period in 2023, primarily due to the NetComm acquisition.
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Q3-2024 Updates
Positive
Negative
Revenue Growth
The company reported $38.1 million in revenue for Q3 2024, a 23% increase quarter-over-quarter and a 67.8% increase year-over-year.
Read all positive updates
Company Guidance
During the DZS third quarter 2024 earnings call, the company provided guidance with several key performance indicators and projections. DZS reported a 23% quarter-over-quarter increase in revenue to $38.1 million and a non-GAAP adjusted gross margin of 36.7%, up by 6.5% from the previous quarter. The firm also highlighted a significant inventory of $79 million and a backlog of $90 million. They anticipate improved revenue and profitability in Q4 2024 and throughout 2025, driven by a growing sales pipeline and the benefits of the NetComm acquisition. The strategic divestiture of their network assurance and in-home WiFi management portfolio added $34 million in cash and reduced debt by $50 million. Additionally, DZS set four KPIs: growth and profitability, cost savings, sales synergies from the NetComm acquisition, and monetizing inventory. The company aims to achieve breakeven on an adjusted EBITDA basis and positive cash flow in 2025.DZS Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 161.81M | 244.54M | 375.69M | 350.21M | 300.64M | 306.88M |
| Gross Profit | 33.33M | 40.44M | 118.36M | 120.27M | 96.88M | 100.11M |
| EBITDA | -52.64M | -121.88M | -30.43M | -14.21M | -12.53M | 4.00M |
| Net Income | -74.78M | -135.22M | -37.43M | -34.68M | -23.08M | -13.26M |
Balance Sheet | ||||||
| Total Assets | 178.50M | 249.38M | 385.01M | 257.67M | 252.23M | 243.57M |
| Cash, Cash Equivalents and Short-Term Investments | 4.30M | 18.96M | 38.32M | 46.67M | 45.22M | 33.39M |
| Total Debt | 22.44M | 67.74M | 50.03M | 16.20M | 63.99M | 58.87M |
| Total Liabilities | 146.17M | 226.82M | 242.28M | 125.76M | 158.65M | 137.03M |
| Stockholders Equity | 32.33M | 22.56M | 142.73M | 131.91M | 93.58M | 106.55M |
Cash Flow | ||||||
| Free Cash Flow | -33.25M | -47.45M | -55.43M | -19.91M | 2.79M | -25.02M |
| Operating Cash Flow | -32.72M | -45.88M | -50.90M | -14.33M | 5.06M | -22.70M |
| Investing Cash Flow | -7.99M | 255.00K | -28.01M | -9.48M | -2.27M | -6.97M |
| Financing Cash Flow | 54.63M | 29.29M | 64.77M | 23.78M | 17.62M | 28.04M |
DZS Technical Analysis
0.02
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DZSIQ, the sentiment is undefined. The current price of 0.02 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for DZSIQ.
DZS Risk Analysis
DZS disclosed 42 risk factors in its most recent earnings report. DZS reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DZS Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
| ― | $39.00 | ― | ― | ― | ― | ― | |
55 Neutral | $66.50M | -7.48 | -21.76% | ― | -1.53% | 55.08% | |
53 Neutral | $42.73M | 183.19 | 0.55% | ― | -23.87% | -109.71% | |
45 Neutral | $37.35M | -3.27 | -11.47% | ― | ― | ― | |
43 Neutral | $9.51M | -0.09 | -260.09% | ― | -56.36% | 32.37% |
* General Sector Average
DZSIQ
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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.Date of analysis: ―