ZTEST Electronics (ZTE) AI Stock Analysis

• Market Cap: C$11.45M
• Dividend Yield: N/A
• Average Volume (3M): 112.79K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.40
• Revenue Growth: -17.91%
• EPS Growth: -54.21%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): <0.01
• Shares Outstanding: 36,936,703
• 10 Day Avg. Volume: 77,129
• 30 Day Avg. Volume: 112,789
• PEG Ratio: 0.00
• 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: 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: 76 Outperform
• Price Target: C$0.35 ▲(11.29% Upside)

The score is driven primarily by strong financial quality (especially the low-debt balance sheet and healthy profitability), supported by positive technical momentum. Valuation appears reasonable on earnings, though recent revenue softness and weaker cash conversion keep the overall score from being higher.

Positive Factors

Strong Profitability Margins

Strong profitability margins indicate effective cost management and operational efficiency, supporting long-term financial health and competitiveness.

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities without over-reliance on debt.

Positive Cash Flow Trend

Improved cash generation supports sustainable operations and provides resources for reinvestment and strategic initiatives, enhancing long-term growth prospects.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in maintaining sales momentum, which could impact market position and long-term expansion potential.

Negative EPS Growth

Negative EPS growth indicates declining profitability, which may affect investor confidence and limit the company's ability to finance future growth.

Revenue Growth Challenges

Significant challenges in revenue growth can hinder the company's ability to scale and compete effectively, impacting its long-term market position.

ZTEST Electronics Business Overview & Revenue Model

Company Description

ZTEST Electronics Inc., through its subsidiary, Permatech Electronics Corporation, designs, develops, and assembles printed circuit boards and other electronic equipment in Canada. It serves customers in the medical, power, computer, telecommunication, wireless, industrial, and consumer electronics markets. The company is based in Toronto, Canada.

How the Company Makes Money

ZTEST Electronics generates revenue through multiple channels, primarily by selling its core products such as smartphones, telecommunications equipment, and smart devices. The company benefits from both direct sales to consumers and partnerships with major telecommunications operators and retailers, which help to expand its market reach. Additionally, ZTE earns income through service contracts, software licensing, and maintenance services associated with its products. Strategic partnerships with other technology companies enhance its product offerings and market presence, driving further revenue growth.

ZTEST Electronics Financial Statement Overview

Summary

ZTEST Electronics has demonstrated strong financial performance. The income statement shows significant revenue growth and strong profitability with a net profit margin of 16.9%. The balance sheet reflects a solid financial position with a low debt-to-equity ratio and a high equity ratio, indicating financial stability. Cash flow statements reveal robust cash flow generation supporting reinvestment and growth.

Income Statement

ZTEST Electronics has shown significant improvement in its financial performance over the past periods. The company's gross profit margin for TTM is approximately 42.1%, and the net profit margin is 16.9%, indicating strong profitability. Revenue growth has been substantial, with a 67.9% increase from 2023 to 2024. Both EBIT and EBITDA margins are healthy at 14.1% and 27.1% respectively, demonstrating efficient operations.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.06 for TTM, indicating low leverage. The return on equity (ROE) stands at 31.1%, showing effective use of equity to generate profits. The equity ratio is robust at 71.4%, highlighting financial stability. The company's low debt levels and high equity provide a strong foundation for future growth.

Cash Flow

ZTEST Electronics' cash flow statements show a robust free cash flow growth of 111.0% from 2023 to 2024. The operating cash flow to net income ratio is 1.71, indicating healthy cash generation relative to profits. The free cash flow to net income ratio is also strong at 1.28, suggesting efficient cash utilization. The company's cash flow position supports its financial health and potential for reinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.12M	8.32M	9.76M	5.70M	4.42M	4.01M
Gross Profit	3.09M	3.28M	3.92M	1.74M	1.13M	1.23M
EBITDA	1.72M	1.84M	2.60M	492.62K	20.87K	218.97K
Net Income	1.00M	1.09M	1.75M	165.27K	-266.88K	45.76K
Balance Sheet
Total Assets	7.69M	7.20M	7.01M	3.94M	3.08M	3.12M
Cash, Cash Equivalents and Short-Term Investments	4.27M	4.10M	2.78M	232.88K	267.64K	557.01K
Total Debt	131.61K	193.74K	437.12K	839.03K	948.79K	1.16M
Total Liabilities	1.64M	1.39M	2.51M	2.83M	2.20M	2.12M
Stockholders Equity	6.05M	5.81M	4.50M	1.11M	883.16K	1.00M
Cash Flow
Free Cash Flow	1.27M	1.57M	1.75M	93.85K	-202.88K	-57.71K
Operating Cash Flow	1.32M	1.62M	2.43M	93.85K	-195.21K	355.51K
Investing Cash Flow	-52.79K	-52.79K	-687.37K	0.00	-7.67K	-413.22K
Financing Cash Flow	-260.81K	-238.87K	797.37K	-128.61K	-86.49K	394.32K

ZTEST Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ZTE, the sentiment is Positive. The current price of 0.31 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.28, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 58.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ZTE.

ZTEST Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZTE	76 Outperform	C$11.45M	11.40	18.01%	―	-17.91%	-54.21%
CLS	73 Outperform	$48.36B	50.96	37.30%	―	25.34%	109.17%
PNG	65 Neutral	C$2.42B	137.97	11.18%	―	11.77%	45.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
EDY	43 Neutral	C$10.11M	-3.65	―	―	26.56%	94.17%
YNV	37 Underperform	C$20.40M	-2.88	-155.37%	―	-21.98%	-32.07%

ZTEST Electronics Corporate Events

ZTEST Electronics Grants 900,000 Stock Options to Key Personnel

ZTEST Electronics Inc. has announced the granting of 900,000 stock options to its directors, officers, and employees, exercisable at $0.28 per share over five years. This move is likely aimed at incentivizing and retaining key personnel, potentially enhancing the company’s operational stability and market competitiveness.

ZTEST Electronics Reports Q1 2026 Results Amid Market Recovery Signs

ZTEST Electronics Inc. reported a 9.7% decrease in Q1 2026 revenues compared to the previous year, with gross margins and net income also seeing declines. Despite these results, the company remains optimistic about future growth, citing increased orders for new boards and a significant rise in inventory values as indicators of returning market confidence. The company is focused on leveraging the recovering market while managing business risks, as evidenced by growth in cash, working capital, and consistent gross margins.

ZTEST Electronics Appoints Trevor Treweeke as Independent Director

ZTEST Electronics Inc. has appointed Trevor Treweeke as an independent director to its Board of Directors, pending regulatory approval. Trevor Treweeke brings over 12 years of experience in capital markets, having facilitated over $40 million in capital raises and advised on corporate strategies, which is expected to enhance ZTEST’s strategic growth and market positioning.

ZTEST Electronics Reports Fiscal 2025 Results Amid Market Challenges

ZTEST Electronics Inc. reported fiscal 2025 revenues of $8.3 million, a decrease from $9.8 million in 2024, with modest growth in the last three quarters of 2025. Despite the revenue decline, the company improved its cash position and working capital, and re-elected its board members and auditors. CEO Steve Smith noted a cyclical decline in the EMS market and tariff impacts, but expressed optimism due to positive market signs and successful customer relationship efforts.

ZTEST Electronics Reports Fiscal 2025 Results Amid Market Challenges

ZTEST Electronics Inc. announced fiscal 2025 revenues of $8.3 million, reflecting a decline from the previous year’s $9.8 million, amid a challenging EMS market environment marked by cyclical declines and tariff threats. Despite the revenue drop, the company noted modest growth in the last three quarters of 2025 and expressed optimism about market recovery, attributing positive signs to efforts in nurturing customer relationships. Additionally, the re-election of board members and re-appointment of auditors were confirmed at the annual shareholders meeting.