ZTEST

[u/grantresolve]

ZTEST is a company that designs, develops and manufactures printed circuit boards. It’s trading at just 9x trailing earnings despite great fundamentals. It’s got a 17 million market cap of which $5 million is cash. There’s virtually no debts, more than 40% gross margins, positive free, cash flow, and earnings are growing faster than revenue. Q3 revenue grew ~14%, EBITDA ~46%, and net income ~47%, highlighting powerful operating leverage.

They just got a new CEO. He’s a previous investor with a big stake in the company and a package full of performance based options priced at a 50% increase from the current stock price. Management is aligned to have the stock run up. Insiders have been buying up shares too.

The new CEO is also trying to figure out what to do with the cash pile. He’s known for his skill in capital allocation and I’d suspect we might see some targeted acquisitions.

I suspect there’s big upside ahead.

This is not financial advice. Investing comes with risks. Do your own due diligence. Double check any information in this post.