# Zotefoams plc (ZTF.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Basic Materials / Chemicals. Price 449p, market value 221 millionp.

## Valuation
- **P/E (trailing): 9.0×** (5-yr avg 2221.0×, 3-yr avg 1328.8×). Zotefoams plc trades at 9.0× trailing earnings, well below its own five-year average of 2221.0×: cheap by its own standards. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 10.8×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.01**. A PEG of 0.01 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.7×**. The shares trade at 1.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.2×**. Enterprise value is 6.2× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 16.3%** (5-yr avg 0.1%). Free cash flow equals 16.3% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 11.1%**. The inverse of the P/E: 11.1% of the price is earned each year.

## Profitability
- **Gross margin: 32.3%**. Zotefoams plc keeps 32.3% of revenue after the direct cost of what it sells.
- **Operating margin: 12.8%**. 12.8% of revenue is left after running the business.
- **Net margin: 14.3%**. 14.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 17.4%**. 17.4% on shareholders' equity is solid.
- **Return on invested capital: 22.3%**. Return on all capital, debt included, is 22.3%: comfortably above what that capital costs.
- **Return on assets: 8.8%**. Each dollar of assets produces 8.8% of profit.

## Growth
- **Revenue growth (1 yr): 7.2%** (3-yr 7.6%/yr, 5-yr 13.9%/yr). Revenue grew 7.2% over the last year, against 13.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 895.1%** (3-yr 31.0%/yr, 5-yr 24.6%/yr). Earnings per share rose 895.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 15.3%/yr**. Free cash flow has compounded at 15.3% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.44**. Debt is 0.44 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 1.0×**. It would take 1.0 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 7.7×**. Operating profit covers interest 7.7× over, a safe margin.
- **Current ratio: 1.02** (quick 0.66). Current assets cover the next year's liabilities 1.02 times.
- **Altman Z-score: 3.21**. A Z-score of 3.21 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.77%** (0p per share, trailing). Zotefoams plc yields 1.77%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 16%** (20% of free cash flow). 16% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 30.2%/yr** (1-yr 4.4%). The dividend has compounded at 30.2% a year over five years, doubling roughly every 2 years at that pace.
- **Shareholder yield: 1.7%**. Dividends plus net buybacks return 1.7% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (5 analysts). 5 analysts cover Zotefoams plc; the consensus is strong_buy, with an average price target of 613p (+37% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 10.1%** (YTD 11.2%, 3-mo 4.2%). The shares are up 10.1% over twelve months including dividends.
- **From 52-week high: -6.4%** (41.0% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 55**. An RSI of 55 is neutral.
- **Beta (1 yr): 0.76** (volatility 38%). Beta of 0.76 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ZTF.L · Page: https://foliofundamentals.com/stocks/ztf.l

Not investment advice.