Ratings Zyxel Group Corporation

Equities

3704

TW0003704003

End-of-day quote Taiwan S.E. Other stock markets 23:00:00 15/05/2024 BST			5-day change	1st Jan Change
40.35 ^TWD	0.00%		+1.25%	-20.57%

05-07	Zyxel Group Corporation Reports Earnings Results for the First Quarter Ended March 31, 2024	CI
05-06	Zyxel Group Corporation announced a financing transaction	CI

Summary

The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Overall, and from a short-term perspective, the company presents an interesting fundamental situation.

Strengths

The company is in a robust financial situation considering its net cash and margin position.
With a P/E ratio at 12.26 for the current year and 8.29 for next year, earnings multiples are highly attractive compared with competitors.
The stock, which is currently worth 2024 to 0.38 times its sales, is clearly overvalued in comparison with peers.
The company is one of the best yield companies with high dividend expectations.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
Historically, the company has been releasing figures that are above expectations.

Weaknesses

According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
For the past year, analysts have significantly revised downwards their profit estimates.
For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
Over the past four months, analysts' average price target has been revised downwards significantly.
The overall consensus opinion of analysts has deteriorated sharply over the past four months.
Over the past twelve months, analysts' consensus has been significantly revised downwards.

Ratings chart - Surperformance

Sector: Communications & Networking

	1st Jan change	Capi.	ESG Refinitiv
ZYXEL GROUP CORPORATION	-20.57%	505M	-
CISCO SYSTEMS, INC.	-4.23%	201B	A-
ARISTA NETWORKS, INC.	+36.78%	102B	B
FOXCONN INDUSTRIAL INTERNET CO., LTD.	+69.18%	66.84B	B
MOTOROLA SOLUTIONS, INC.	+17.17%	60.88B	A-
GARMIN LTD.	+32.61%	32.76B	B-
NOKIA OYJ	+17.48%	21.24B	D-
ERICSSON	-3.34%	18.75B	B-
ZHONGJI INNOLIGHT CO., LTD.	+51.01%	18.16B	C+
ZTE CORPORATION	+7.74%	17.45B	A-

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

Finances

Valuation

P/E ratio

EV / Sales

Price to Book

Price to Free Cash Flow

Yield

Momentum

1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

1 year EPS revision

4 months EPS revision

Consensus

Analyst Opinion

Potential Price Target

4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Technical analysis

ST Timing

MT Timing

LT Timing

RSI

Bollinger Spread

Unusual volumes