Buy, sell or hold?
Thanks for all your fantastic guidance over the years.
Public Question.
Dave.
ZDC has seen very strong momentum year-to-date and is up 14% over the last year as well. ZDC continues to be cheap on a trailing earnings basis at 9.3x. The company has been working on expanding to the US and in January reported its first-ever revenue from the United States. It has also completed design work on its 2024 Solar MobileyeZ. The 2024 MobileyeZ will be a fully standalone, solar powered unit with battery backup. Net income and cash from operations are positive over the last twelve months while free cash flow is still negative. ZDC's balance sheet is not great with $22.9M in net debt and a high debt-to-equity ratio of 1.87x. Revenue is projected to grow at 30% in 2024 but the company does only have two analysts. It is too risky for us with the significant size risks and ZDC having high debt. We like that the expansion to the US has started briniging in revenues and should be positive for growth along with news on the new product. One to watch, not yet own.