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ZTE Corporation (000063) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

ZTE Corporation

000063Market cap $20BPrice $4.4

Country🇨🇳China

SectorTechnology

IndustryCommunications Equipment

Builds telecom networks and 5G infrastructure that keep phones and internet running across emerging markets. China's second-largest equipment maker, it survived a near-fatal US trade ban and still powers networks in over 160 countries.

In Bastion Portfolios?

52W Return-36%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+2%4

Revenue Forecast

Rev CAGR (1y)+16%7

Rev CAGR (3y)+13%8

Rev CAGR (5y)+10%7

Earnings Forecast

EPS Growth Y+1+13%7

EPS Growth Y+2-13%3

EPS Growth Y+3+16%8

Quality

Margins

EBIT Margin3%2

Net Income Margin2%3

Free Cash Flow Margin-1%3

Debt

Net Debt/EBITDA0.76

Efficiency

ROE4%3

ROA1%3

Earnings Stability55

GEAR+WEAK24

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)127

P/E Ratio (Forward 3y)232

P/BV1.87

EV Multiples

EV/EBITDA Fwd144

EV/EBIT Fwd175

Yield

Free Cash Flow Yield-1.0%2

Dividend Yield1.3%4

Momentum

Short term

1 month return-8%3

3 month return-16%2

YTD return-18%2

Mid term

Price vs 52wHigh53%2

1 year return-32%2

Long term

3 year return-1%3

5 year return-2%3

Risk Shield

Price Risk

Beta0.76

Volatility47%3

Free Cash Flow

Free Cash Flow Margin-1%3

Free Cash Flow Yield-1.0%2

Quality

ROCE3%2

Earnings Stability55

Net Debt/EBITDA0.76

02Growth

Is it actually growing, and how fast?

000063ZTE

Revenue FY25$19.1B

GROWTH RATING↗

AVERAGE67 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+2%4

Revenue, next 1Y+16%7

Revenue, next 3Y, CAGR+13%8

Revenue, next 5Y, CAGR+10%7

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+13%7

EPS growth, FY27E-13%3

EPS growth, FY28E+16%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 67% of companies worldwide.

Revenue is set to grow 13%/yr over the next 3 years, ahead of most of the market.7/10

Revenue grew 2%/yr over the last 3 years and is set to grow 13%/yr from here.

The runway holds up: revenue is set to grow 10%/yr over five years.7/10

WATCH

Earnings are set to grow in step with sales (EPS about 13%/yr vs revenue 13%/yr). One year dips: EPS falls 13% in year 2.

WEAKNESSES

None flagged.

BOTTOM LINE

Reaccelerating Grower

A top-tier grower that's speeding up. The one thing to watch: the earnings path has a down year.

03Price Momentum

Is the market behind it right now?

000063ZTE

Total return Current105%

Price return Current91.2%

MOMENTUM RATING↗

VERY WEAK8 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-8%3

3-month return-16%2

YTD return-18%2

MID & LONG-TERM▾SCORE

% of 52-week high53%2

1-year return-32%2

3-year return-1%3

5-year return-2%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-1.1% over three years and -2% over five), behind 70% of the market.

It's down 32% over the past year, now 47% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-8%), over three months (-16%) and so far this year (-18%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on ZTE. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

000063ZTE

Revenue FY25$19.1B

GROWTH RATING↗

AVERAGE67 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+2%4

Revenue, next 1Y+16%7

Revenue, next 3Y, CAGR+13%8

Revenue, next 5Y, CAGR+10%7

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+13%7

EPS growth, FY27E-13%3

EPS growth, FY28E+16%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 67% of companies worldwide.

Revenue is set to grow 13%/yr over the next 3 years, ahead of most of the market.7/10

Revenue grew 2%/yr over the last 3 years and is set to grow 13%/yr from here.

The runway holds up: revenue is set to grow 10%/yr over five years.7/10

WATCH

Earnings are set to grow in step with sales (EPS about 13%/yr vs revenue 13%/yr). One year dips: EPS falls 13% in year 2.

WEAKNESSES

None flagged.

BOTTOM LINE

Reaccelerating Grower

A top-tier grower that's speeding up. The one thing to watch: the earnings path has a down year.

03Price Momentum

Is the market behind it right now?

000063ZTE

Total return Current105%

Price return Current91.2%

MOMENTUM RATING↗

VERY WEAK8 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-8%3

3-month return-16%2

YTD return-18%2

MID & LONG-TERM▾SCORE

% of 52-week high53%2

1-year return-32%2

3-year return-1%3

5-year return-2%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-1.1% over three years and -2% over five), behind 70% of the market.

It's down 32% over the past year, now 47% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-8%), over three months (-16%) and so far this year (-18%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on ZTE. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community