Post by
retiredcf on Mar 23, 2024 12:41pm
The Word is Spreading
Notwithstanding the final comments, this will bring ZDC more onto investors' radar. GLTA
ZDC has seen very strong momentum year-to-date and is up 14% over the last year as well. ZDC continues to be cheap on a trailing earnings basis at 9.3x. The company has been working on expanding to the US and in January reported its first-ever revenue from the United States. It has also completed design work on its 2024 Solar MobileyeZ. The 2024 MobileyeZ will be a fully standalone, solar powered unit with battery backup. Net income and cash from operations are positive over the last twelve months while free cash flow is still negative. ZDC's balance sheet is not great with $22.9M in net debt and a high debt-to-equity ratio of 1.87x. Revenue is projected to grow at 30% in 2024 but the company does only have two analysts. It is too risky for us with the significant size risks and ZDC having high debt. We like that the expansion to the US has started briniging in revenues and should be positive for growth along with news on the new product. One to watch, not yet own. (5iResearch)
Comment by
mjh9413 on Mar 27, 2024 1:16am
The debt is mainly for PP&E and is manageable even at 9.75%. Inventory has clearly grown and commentary indicates it is beng put to work. Hopefully the US side particualrly will see meaningful rev growth even in Q4 with further commentary on continuing momentum. Was glad to have further buying op at what are now significantly lower levels