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(Edit : subsequent to writing this piece CEO David Stirling gave a presentation to MelloLondon in Nov-18 the slide deck gives a really good overview and is well worth a read)

There have been an interesting series of announcements from Zotefoams (LON:ZTF) over the last few weeks and months. When I first researched this stock some while ago, one of my frustrations was that there was seemed to be so little analysis and commentary around. So with this in mind, here is a short writeup on the company which hopefully together with inputs from the wider community may be a useful source for further reference.

Not withstanding the lack of commentary, Zotefoams (LON:ZTF) is quite highly valued on a forward PE of c. 30x and earns the SR Style of “High flyer”

 

About the Company - History

Hardly a household name, but Zotefoams can trace it’s history back nearly a century to an original incarnation as Onazote  {http://www.zotefoams.com/about-us/history/}

More recently the Zotefoams floated on the LSE in 1995 and I would argue that the company in it’s  current form really took shape around 2002.

Whichever way you look at it Zotefoams has been around  for  a long time and therefore is perhaps not the obvious place to look for a dynamic growth opportunity, however there are some reasons to think that is exactly what it is.

About the Company – What it does

Zotefoams plc is a United Kingdom-based cellular material technology company.

Eh?

It manufactures foam products!

Oh you mean cushions?

That doesn’t really describe it to be honest.

 
Let’s just say that Zotefoams make plastic whoosits used in a wide variety of products in many industries; and some “global megatrends”  are driving increased demand for  their products.

Personally I think that the difficulty to succinctly characterise what it is that ZTF does and why their products will fly is a reason that ZTF appears “unloved”.

I can absolutely understand this. On the other hand I am very cautious  of those situations where one over-researches a company to the extent that one feels capable of judging every new product launch despite being a million miles away from the target…

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