Zotefoams (ZTF) AI Stock Analysis

• Market Cap: £198.08M
• Dividend Yield: 1.76%
• Average Volume (3M): 149.48K
• Price to Earnings (P/E): 281.9
• Beta (1Y): 1.34
• Revenue Growth: 15.56%
• EPS Growth: -92.94%
• Country: UK
• Employees: 590
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.19
• Shares Outstanding: 49,246,235
• 10 Day Avg. Volume: 347,408
• 30 Day Avg. Volume: 149,476
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £401.00
• Price Target Upside: -5.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: 401.00p ▼(-5.42% Downside)

Zotefoams' overall stock score is driven by strong technical momentum and positive corporate events, which are offset by high valuation concerns and profitability challenges. The company's strategic expansions and robust cash flow are positive, but the high P/E ratio and net loss weigh on the score.

Zotefoams Business Overview & Revenue Model

Company Description

Zotefoams (ZTF) is a leading manufacturer of innovative, high-performance foam products, primarily serving the aerospace, automotive, medical, and industrial sectors. The company specializes in producing cross-linked polyethylene (PEX) and other advanced materials using its proprietary manufacturing processes, which allow for lightweight and durable solutions. Zotefoams is committed to sustainability and innovation, developing products that meet the stringent demands of various applications while minimizing environmental impact.

How the Company Makes Money

Zotefoams generates revenue through the sale of its foam products across multiple sectors, including aerospace, automotive, and medical. The company operates a diversified revenue model that includes direct sales to manufacturers, distributors, and end-users. Key revenue streams come from custom foam solutions tailored to specific customer needs, as well as standard product lines. Zotefoams has established significant partnerships with major companies in its target industries, enhancing its market presence and enabling access to new customer bases. Additionally, the company's focus on research and development fosters innovation, allowing it to introduce new products that capture market demand and drive sales growth.

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: Positive
• Last Price: 424.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZTF, the sentiment is Positive. The current price of 424 is above the 20-day moving average (MA) of 336.45, above the 50-day MA of 324.04, and above the 200-day MA of 300.45, indicating a bullish trend. The MACD of 26.70 indicates Negative momentum. The RSI at 74.99 is Negative, neither overbought nor oversold. The STOCH value of 93.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZTF.

Zotefoams Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JMAT	70 Neutral	£3.08B	8.69	15.96%	4.18%	-9.10%	239.75%
ZTF	66 Neutral	£198.08M	281.94	0.60%	1.76%	15.56%	-92.94%
VCT	66 Neutral	£605.35M	20.38	6.65%	8.58%	4.75%	-3.29%
ELM	64 Neutral	£965.51M	―	3.37%	1.35%	-11.78%	-92.61%
ESNT	63 Neutral	£286.01M	30.93	3.48%	2.83%	-4.71%	86.21%
SYNT	45 Neutral	£111.22M	―	-7.26%	―	-4.41%	2.29%
Sector *	44 Neutral	AU$1.54B	-7.28	-22.62%	4.34%	-3.13%	-36.41%

Zotefoams Corporate Events

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. The transactions involved the purchase of partnership shares and the allocation of matching shares, reflecting the company’s commitment to aligning management interests with shareholder value. This move is in accordance with the UK Market Abuse Regulation and highlights Zotefoams’ strategic focus on fostering a strong internal ownership culture.

Zotefoams Expands Asian Footprint with New Joint Venture and Leadership Appointment

Zotefoams has entered a joint venture with Seoheung Co. Ltd. to establish a new manufacturing facility in Vietnam, aimed at enhancing its presence in the Asian market. The collaboration de-risks Zotefoams’ investment by sharing financial and operational responsibilities, while also benefiting from Seoheung’s local manufacturing expertise. This move supports Zotefoams’ strategic transition to producing advanced 3D preforms, promising improved customer relationships and sustainability metrics. Additionally, the appointment of Brandon Thomas as Managing Director – Asia underscores the region’s importance to Zotefoams’ growth ambitions.

Zotefoams Achieves Record H1 2025 Results with Strategic Advancements

Zotefoams plc has reported record interim results for the first half of 2025, with a 9% increase in revenue to £77.4 million and a 37% rise in profit before tax to £11.4 million. The company has made significant strategic progress by aligning its commercial functions to focus on three global market verticals and advancing its manufacturing capabilities, including a new facility in Vietnam in partnership with Seoheung Co. Ltd. This strategic shift and operational efficiency improvements have bolstered Zotefoams’ market positioning and are expected to drive sustainable growth, despite anticipated moderation in certain sectors.

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.