ZTEST Electronics Inc. (ZTE.CN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+134.9%

CA$1.01

vs CA$0.43 price

Levered DCF

CA$1.33

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.25

Safe zone

Rating

A+

Overall 5 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	10.79×	9.32×	3.7×	12.1×	-16.83×	160.53×	-7.69×	-10.18×
P/B	1.74×	1.75×	1.44×	1.81×	5.11×	7.36×	8.23×	2.65×
P/S	1.36×	1.22×	0.66×	0.35×	1.02×	1.84×	1.62×	0.8×
EV / EBITDA	4.32×	3.39×	1.6×	5.29×	248.81×	36.48×	-10.67×	-13.13×
Gross margin	41.1%	39.4%	40.2%	30.5%	25.6%	30.7%	31.6%	27.7%
Operating margin	16.6%	16.1%	22.2%	3.9%	-5.1%	1.3%	-1.0%	-5.4%
Net margin	12.6%	13.1%	18.0%	2.9%	-6.0%	1.1%	-21.1%	-7.8%
Current ratio	5.37×	5.05×	2.67×	1.32×	1.31×	1.47×	1.48×	1.31×
Debt / equity	0.14×	0.03×	0.1×	0.76×	1.07×	1.15×	0.16×	0.07×
Interest coverage	99.45×	125.42×	101.09×	7.07×	-5.82×	4.59×	-1.34×	-7.75×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.2%	18.8%	39.0%	14.9%	-30.2%	4.6%	-107.1%	-26.0%
Return on invested capital	13.2%	16.2%	33.0%	9.3%	-12.2%	2.4%	-4.2%	-16.1%
Return on assets	12.1%	15.1%	25.0%	4.2%	-8.7%	1.5%	-45.3%	-15.2%
Free cash flow yield	12.4%	15.5%	26.9%	4.7%	-4.5%	-0.8%	4.3%	-3.2%
Earnings yield	9.3%	10.7%	27.0%	8.3%	-5.9%	0.6%	-13.0%	-9.8%
Enterprise value	CA$8.1M	CA$6.2M	CA$4.1M	CA$2.6M	CA$5.2M	CA$8M	CA$6.2M	CA$3.5M
Net debt / EBITDA	-2.39×	-2.13×	-0.9×	1.23×	32.64×	2.74×	0.17×	-0.07×
Cash conversion cycle (days)	63	49	113	147	96	66	75	64