Added to YB: 2026-10-13
Pitch date: 2026-10-10
ZTE.CN [bullish]
ZTEST Electronics Inc.
-3.12%
current return
Author Info
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Company Info
ZTEST Electronics Inc., through its subsidiary, Permatech Electronics Corporation, designs, develops, and assembles printed circuit boards in Canada.
Market Cap
$16.5M
Pitch Price
$0.32
Price Target
N/A
Dividend
N/A
EV/EBITDA
6.42
P/E
14.75
EV/Sales
1.30
Sector
Electronic Equipment, Instruments and Components
Category
turnaround
ZTest Electronics ($ZTE.C) FINS Review
ZTE.CN: Ztest’s FY2026 rebound supports a position initiated in the 39-42-cent buy zone: revenue rose 10.5% to $9.2M, gross margin expanded 160 bps to 43.1%, and Q4 revenue grew 18%, though higher expenses limited net-income growth to 6.8%. At 41.5 cents, valuation is 12.9x P/E and 5.9x EV/EBITDA, or an estimated 10.8x/5.1x adding back roughly $275k of one-time CEO severance. A debt-free balance sheet with $5.5M cash provides downside support and acquisition capacity; customer concentration, revenue lumpiness and execution under new leadership are the risks.
Read full article (5 min)