Post by
retiredcf on Oct 18, 2024 6:31am
Another View
We would recommend reviewing the company's investor presentation, but it highlights ZDC's proprietary MobileyeZ surveillance towers. These towers primarily use solar or electric so they do not create emissons while the video monitoring technology incorporates AI and is constantly monitored by staff. ZDC has some big name contracts like Home Depot and DR Horton which leads us to believe that their product and service offering does have some competitive advantage. Additionally, the surveillance technology and towers themselves present modest barriers to entry. The revenue model is also attractive generating 75% recurring revenue. Analyst outlook calls for revenue growth of 67% and 69% with EPS doubling annually over 2025&2026 so significant growth is expected. Further, it has high insider ownership approx. 40% and gross margins are decently attractive. Size and concentration risk are definitely there while it is also expensive at 75x forward earnings but we think there are certainly some attractive features for future growth. (5iResearch)