ZTE Corporation
ZTE Corporation Fundamental Analysis
ZTE Corporation (ZTCOF) shows weak financial fundamentals with a PE ratio of 15.86, profit margin of 4.21%, and ROE of 7.54%. The company generates $133.4B in annual revenue with weak year-over-year growth of -2.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ZTCOF's fundamental strength across five key dimensions:
Efficiency Score
WeakZTCOF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentZTCOF trades at attractive valuation levels.
Growth Score
WeakZTCOF faces weak or negative growth trends.
Financial Health Score
ModerateZTCOF shows balanced financial health with some risks.
Profitability Score
WeakZTCOF struggles to sustain strong margins.
Key Financial Metrics
Is ZTCOF Expensive or Cheap?
P/E Ratio
ZTCOF trades at 15.86 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ZTCOF's PEG of -0.56 indicates potential undervaluation.
Price to Book
The market values ZTE Corporation at 1.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.24 times EBITDA. This is generally considered low.
How Well Does ZTCOF Make Money?
Net Profit Margin
For every $100 in sales, ZTE Corporation keeps $4.21 as profit after all expenses.
Operating Margin
Core operations generate 3.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.54 in profit for every $100 of shareholder equity.
ROA
ZTE Corporation generates $2.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ZTE Corporation generates limited operating cash flow of $4.95B, signaling weaker underlying cash strength.
Free Cash Flow
ZTE Corporation generates weak or negative free cash flow of $1.04B, restricting financial flexibility.
FCF Per Share
Each share generates $0.22 in free cash annually.
FCF Yield
ZTCOF converts 1.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ZTCOF Stacks Against Its Sector Peers
| Metric | ZTCOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.86 | 34.36 | Better (Cheaper) |
| ROE | 7.54% | 1116.00% | Weak |
| Net Margin | 4.21% | -125859.00% (disorted) | Weak |
| Debt/Equity | 1.07 | 7.88 | Strong (Low Leverage) |
| Current Ratio | 1.76 | 5.74 | Neutral |
| ROA | 2.57% | -308994.00% (disorted) | Weak |
ZTCOF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ZTE Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
17.54%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
34.77%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
35.55%
Industry Style: Growth, Innovation, High Beta
High Growth