Zotefoams (ZTF) AI Stock Analysis

• Market Cap: £149.78M
• Dividend Yield: 249.33%
• Average Volume (3M): 61.57K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.29
• Revenue Growth: 16.39%
• EPS Growth: -129.71%
• Country: UK
• Employees: 590
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): -0.06
• Shares Outstanding: 49,246,235
• 10 Day Avg. Volume: 38,675
• 30 Day Avg. Volume: 61,573
• PEG Ratio: 0.43
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.28
• 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: £305.00
• Price Target Upside: 1.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: 308.00p ▲(2.67%Upside)

The overall score reflects the company's robust cash flow and positive corporate events, offset by weak technical indicators and poor valuation metrics. While revenue growth and strategic initiatives are promising, profitability challenges and a high dividend yield raise concerns. The stock's current technical trend suggests caution.

Zotefoams Business Overview & Revenue Model

Company Description

Zotefoams plc, together with its subsidiaries, manufactures, distributes, and sells polyolefin block foams in the United Kingdom, Continental Europe, North America, and internationally. The company operates through Polyolefin Foams, High-Performance Products, and MuCell Extrusion LLC segments. It offers AZOTE, a polyolefin foam under the Plastazote, Evazote, and Supazote brands; and various high-performance foams manufactured from fluoropolymers, engineering polymers, and specialty elastomers under the ZOTEK brand. The company also provides T-FIT, a clean insulation system that is used in the pharmaceutical, biotech, and semiconductor cleanroom industries. In addition, it owns and licenses patented MuCell microcellular foam technology, as well as sells related machinery. The company primarily serves the automotive, aerospace, product protection, industrial parts, marine, building and construction, military, and sports and leisure industries. Zotefoams plc was founded in 1921 and is headquartered in Croydon, the United Kingdom.

How the Company Makes Money

Zotefoams generates revenue primarily through the manufacture and sale of its specialized foam products. The company's revenue streams are largely driven by its diverse product offerings, each tailored to meet specific industry needs. Key revenue sources include the sale of polyolefin foams, which are used extensively in packaging, construction, and industrial applications; high-performance polymer foams, targeted at markets requiring superior thermal and acoustic insulation properties; and microcellular foams, which provide enhanced material performance in lightweight and high-strength applications. Additionally, Zotefoams benefits from strategic partnerships and collaborations with global industry leaders, which facilitate market expansion and innovation in product development. The company's earnings are further supported by its focus on sustainability and efficiency, leveraging its proprietary technologies to deliver cost-effective and environmentally friendly solutions.

Zotefoams Financial Statement Overview

Summary

Zotefoams shows strong revenue growth and a solid balance sheet, but struggles with profitability, as evidenced by a net loss and declining EBIT. The positive cash flow performance offsets some of these concerns, indicating good cash management.

Income Statement

The recent annual report shows a decline in profitability with a negative net income, resulting in a negative net profit margin. However, the company has demonstrated revenue growth of 16.39% from the previous year, indicating a positive trajectory in sales. Gross profit margin is stable, but EBIT and EBITDA margins have decreased, reflecting pressure on operational efficiency.

Balance Sheet

The balance sheet remains strong with a healthy equity ratio of 62.56%, indicating a solid capital structure. However, the debt-to-equity ratio has increased slightly to 0.40, suggesting a rise in leverage. Return on equity has turned negative due to the net loss, which is a concern for profitability.

Cash Flow

Cash flow from operations has significantly improved, supporting a positive free cash flow. The free cash flow to net income ratio is unfavorable due to the negative net income, but the operating cash flow to net income ratio indicates operational cash generation capability. The free cash flow growth rate is strong, reflecting improved cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	147.79M	126.97M	127.37M	100.75M	82.65M
Gross Profit	46.13M	41.05M	38.73M	26.57M	27.78M
EBITDA	12.28M	23.41M	22.16M	15.67M	15.72M
Net Income	-2.75M	9.24M	10.01M	4.38M	7.16M
Balance Sheet
Total Assets	174.75M	175.61M	170.36M	159.38M	158.22M
Cash, Cash Equivalents and Short-Term Investments	10.53M	6.29M	10.59M	8.05M	8.50M
Total Debt	43.56M	37.86M	38.41M	42.40M	44.10M
Total Liabilities	65.39M	59.85M	60.82M	61.60M	63.85M
Stockholders Equity	109.36M	115.76M	109.54M	97.78M	94.38M
Cash Flow
Free Cash Flow	11.35M	-702.00K	14.03M	3.83M	-1.85M
Operating Cash Flow	25.00M	7.78M	21.12M	10.90M	10.86M
Investing Cash Flow	-13.34M	-8.29M	-7.09M	-6.98M	-12.71M
Financing Cash Flow	-7.41M	-3.73M	-11.53M	-4.34M	3.72M

Zotefoams Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 300.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZTF, the sentiment is Negative. The current price of 300 is below the 20-day moving average (MA) of 316.45, below the 50-day MA of 309.82, and below the 200-day MA of 303.38, indicating a bearish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 42.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ZTF.

Zotefoams Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESNT	74 Outperform	£298.87M	25.45	4.26%	232.49%	-4.39%	33.44%
JMAT	72 Outperform	£3.09B	8.78	15.96%	416.89%	-9.10%	239.75%
VCT	66 Neutral	£614.05M	20.67	6.65%	8.44%	4.75%	-3.29%
ELM	62 Neutral	£979.66M	―	-5.93%	1.05%	0.71%	-274.39%
ZTF	55 Neutral	£149.78M	14.46	-2.45%	249.33%	16.39%	-129.71%
SYNT	52 Neutral	£159.80M	―	-6.25%	―	0.81%	15.63%
Sector *	44 Neutral	AU$1.51B	-6.22	-41.37%	3.85%	-3.52%	-43.04%

Zotefoams Corporate Events

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc has announced that its directors and persons discharging managerial responsibilities have acquired shares under the company’s Share Incentive Plan. The purchase of shares, priced at £3.16 each, reflects the company’s commitment to aligning the interests of its management with those of its shareholders, potentially impacting its market positioning and stakeholder confidence.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that directors and persons discharging managerial responsibilities have acquired shares under the company’s Share Incentive Plan. This transaction, involving the purchase of partnership shares and allocation of matching shares, reflects the company’s commitment to aligning management interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that its directors and persons discharging managerial responsibilities have acquired ordinary shares under the company’s Share Incentive Plan. This transaction, involving the purchase of dividend shares, reflects the company’s ongoing commitment to align the interests of its leadership with those of its shareholders, potentially impacting its market positioning and stakeholder confidence.

Zotefoams Successfully Passes All Resolutions at 2025 AGM

At its 2025 Annual General Meeting, Zotefoams plc successfully passed all resolutions, including ordinary and special resolutions, with a shareholder voting turnout of 53.51%. The approval of these resolutions, including the re-election of directors and authorization of share allotments, reflects strong shareholder support and positions the company for continued strategic growth and operational efficiency.

Zotefoams Reports Strong Growth and Strategic Progress in 2025

Zotefoams has reported a strong trading performance for the first four months of 2025, achieving an 8% sales growth and record revenue of £50.7 million. The company is executing a refreshed strategy, including restructuring its commercial function and expanding its manufacturing footprint in Vietnam, which is strategically important due to the concentration of the global athletic footwear market in Asia. Despite potential challenges from US tariffs, Zotefoams remains confident in its growth prospects, supported by robust margins, a growing order book, and strategic investments in North America and Asia.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that its directors and persons discharging managerial responsibilities have acquired shares under the company’s Share Incentive Plan. This acquisition, involving the purchase of partnership shares and allocation of matching shares, reflects the company’s commitment to aligning management interests with shareholder value, potentially strengthening its market position and stakeholder confidence.

Zotefoams CFO Exercises Share Options Under Bonus Plan

Zotefoams plc announced the exercise of nil cost options by Group CFO Gary McGrath under the Deferred Bonus Share Plan, involving 2,125 ordinary shares at a price of £2.53 each. This transaction, reflecting dividends during the restricted period, aligns with the UK Market Abuse Regulation, potentially impacting shareholder value and executive compensation strategies.

Zotefoams Appoints New Group CFO to Drive Strategic Growth

Zotefoams plc announced the appointment of Nick Wright as the new Group Chief Financial Officer, effective by October 2025, succeeding Gary McGrath. Nick Wright brings over 20 years of experience in financial management and transformation, which aligns with Zotefoams’ strategic growth ambitions. His expertise in the manufacturing sector and listed company transformation will support Zotefoams’ next phase of growth, as expressed by Group CEO Ronan Cox.