Zotefoams (ZTF) AI Stock Analysis

• Market Cap: £188.32M
• Dividend Yield: 1.97%
• Average Volume (3M): 76.93K
• Price to Earnings (P/E): 268.1
• Beta (1Y): 1.26
• 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: 64,297
• 30 Day Avg. Volume: 76,930
• PEG Ratio: 0.43
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 13.50
• 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: £595.00
• Price Target Upside: 54.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: 431.00p ▲(11.66% Upside)

Zotefoams' overall score is driven by strong corporate events and cash flow performance, offset by profitability challenges and high valuation concerns. The company's strategic initiatives and acquisitions are promising, but the high P/E ratio and net loss weigh on the score.

Positive Factors

Revenue Growth

Zotefoams' strong revenue growth indicates a successful market strategy and product demand, supporting long-term business expansion.

Cash Flow Generation

Improved operational cash flow enhances Zotefoams' ability to fund growth initiatives and manage financial obligations sustainably.

Market Position

Zotefoams' leadership in high-performance foams positions it well in niche markets, providing a competitive edge and potential for growth.

Negative Factors

Profitability Challenges

Profitability challenges, including a net loss, could hinder Zotefoams' ability to reinvest in the business and affect long-term financial health.

Rising Debt Levels

Increasing debt levels may strain Zotefoams' financial flexibility, impacting its ability to respond to market changes or invest in growth.

Declining EBIT Margins

Decreasing EBIT margins suggest operational inefficiencies, which could affect Zotefoams' ability to maintain profitability and competitive pricing.

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 the development of closed-cell foams using its proprietary manufacturing processes, which enable the production of lightweight, durable, and versatile materials. Zotefoams' core product offerings include foams for insulation, cushioning, and protection, catering to a diverse array of applications across various industries.

How the Company Makes Money

Zotefoams generates revenue through the sale of its specialized foam products to a wide range of industries. The company's revenue model is driven by the production of high-quality, bespoke foam solutions that meet the specific needs of clients in sectors such as aerospace, automotive, and medical. Key revenue streams include direct sales of foam products, custom manufacturing services, and long-term contracts with major clients. Additionally, Zotefoams has established partnerships with various companies and organizations, enhancing its market reach and contributing to its earnings. The company's commitment to innovation and sustainability also positions it favorably in a competitive market, attracting customers looking for environmentally friendly foam solutions.

Zotefoams Financial Statement Overview

Summary

Zotefoams shows strong revenue growth and a robust balance sheet, but faces profitability challenges with a net loss and declining EBIT margins. Cash flow performance is strong, indicating good operational cash generation and improved free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.16M	147.79M	126.97M	127.37M	100.75M	82.65M
Gross Profit	49.33M	46.13M	41.05M	38.73M	26.57M	27.78M
EBITDA	13.95M	12.28M	23.41M	22.16M	15.67M	15.72M
Net Income	712.00K	-2.75M	9.24M	10.01M	4.38M	7.16M
Balance Sheet
Total Assets	178.73M	174.75M	175.61M	170.36M	159.38M	158.22M
Cash, Cash Equivalents and Short-Term Investments	8.26M	10.53M	6.29M	10.59M	8.05M	8.50M
Total Debt	37.32M	43.56M	37.86M	38.41M	42.40M	44.10M
Total Liabilities	60.74M	65.39M	59.85M	60.82M	61.60M	63.85M
Stockholders Equity	117.99M	109.36M	115.76M	109.54M	97.78M	94.38M
Cash Flow
Free Cash Flow	19.70M	11.35M	-702.00K	14.03M	3.83M	-1.85M
Operating Cash Flow	32.39M	25.00M	7.78M	21.12M	10.90M	10.86M
Investing Cash Flow	-13.30M	-13.34M	-8.29M	-7.09M	-6.98M	-13.29M
Financing Cash Flow	-18.70M	-7.41M	-3.73M	-11.53M	-4.34M	3.72M

Zotefoams Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 386.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 386 is below the 20-day moving average (MA) of 405.55, below the 50-day MA of 408.20, and above the 200-day MA of 341.86, indicating a neutral trend. The MACD of -5.08 indicates Positive momentum. The RSI at 41.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.18 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
VCT	70 Outperform	£562.74M	20.24	6.22%	9.55%	0.58%	61.53%
ELM	64 Neutral	£941.08M	-16.67	3.37%	1.35%	-11.78%	-92.61%
ESNT	63 Neutral	£281.11M	30.43	3.48%	2.38%	-4.71%	86.21%
ZTF	62 Neutral	£188.32M	268.06	0.60%	1.97%	15.56%	-92.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JMAT	60 Neutral	£3.55B	-27.81	-5.62%	3.64%	-4.60%	-126.46%
SYNT	51 Neutral	£97.64M	-1.20	-7.26%	―	-4.41%	2.29%

Zotefoams Corporate Events

Zotefoams Expands with Acquisition of Spanish Foam Producer OKC

Zotefoams has acquired Overseas Konstellation Company S.A. (OKC), a Spanish producer of technical foams, for up to €36.0m. This acquisition enhances Zotefoams’ product portfolio, market reach, and manufacturing capabilities, aligning with its strategy to expand beyond its core business. OKC’s expertise in foam recycling and its established presence in European markets will support Zotefoams’ growth ambitions and strategic priorities, including moving up the value chain and achieving broader geographic balance. The acquisition is expected to be earnings accretive in its first year and offers immediate cross-selling opportunities.

Zotefoams CEO Acquires Shares Under Incentive Plan

Zotefoams plc announced a transaction involving its Group CEO, Ronan Michael Cox, who acquired partnership shares and was awarded matching shares under the company’s Share Incentive Plan. This transaction, conducted in accordance with the UK Market Abuse Regulation, reflects the company’s ongoing commitment to aligning management interests with shareholder value.

Zotefoams Maintains Momentum with Strategic Growth Initiatives

Zotefoams reported steady trading momentum in Q3 2025, with revenue aligning with expectations despite regional variations. The company is making significant strategic advancements, including partnerships and facility developments in Asia, which are expected to bolster its long-term growth and market opportunities. The Board remains confident in achieving mid-single-digit growth for the year, supported by a strong order book and strategic initiatives.

Zotefoams Strengthens Board with New Non-Executive Director Appointment

Zotefoams has announced the appointment of Jack Clarke as an independent Non-Executive Director, effective from October 28, 2025. Clarke, who brings extensive experience from his previous roles as CFO at Essentra plc and Marshalls plc, will also chair the Audit Committee following Doug Robertson’s retirement at the end of the year. This strategic leadership change aims to bolster Zotefoams’ board with Clarke’s international strategy and finance expertise, aligning with the company’s sustainable growth objectives.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that directors and key managerial personnel have acquired ordinary shares under the company’s Share Incentive Plan. This transaction, compliant with UK Market Abuse Regulation, reflects the company’s commitment to aligning management interests with shareholder value, potentially reinforcing stakeholder confidence.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that directors and persons discharging managerial responsibilities have acquired ordinary shares under the company’s Share Incentive Plan through a dividend reinvestment program. This transaction, compliant with the UK Market Abuse Regulation, reflects ongoing engagement and investment by the company’s leadership, potentially reinforcing stakeholder confidence and aligning management interests with shareholder value.

Zotefoams Directors Acquire Shares Under Incentive Plan

Zotefoams plc announced that directors and persons with managerial responsibilities have acquired shares through the company’s Share Incentive Plan dividend reinvestment program. This transaction reflects the company’s ongoing commitment to aligning management interests with shareholder value, potentially enhancing stakeholder confidence and reinforcing its market position.

Zotefoams CFO Acquires Shares Under LTIP

Zotefoams plc announced that its Group CFO, Mr. G C McGrath, acquired 20,154 ordinary shares through the vesting of a nil-cost award under the company’s Long Term Incentive Plan (LTIP) from 2020. To cover the tax liability from this vesting, Mr. McGrath sold 10,376 shares at £4.029 each and retained 11,655 shares. This transaction reflects the completion of a performance and holding period requirement, highlighting the company’s adherence to its incentive plan and potentially impacting shareholder perceptions and market confidence.

Zotefoams Announces CFO Succession with Nick Wright’s Appointment

Zotefoams has announced the appointment of Nick Wright as the new Chief Financial Officer, effective from November 1, 2025, following the retirement of Gary McGrath. This leadership change is expected to support Zotefoams’ strategic objectives and strengthen its position in the global foam technology market.

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 move, involving the purchase of partnership shares and allocation of matching shares, underscores the company’s commitment to aligning management interests with shareholder value. The transactions were conducted in compliance with the UK Market Abuse Regulation, reflecting transparency and adherence to regulatory standards.