DZS INC. Found to be 50% Undervalued by Analysts
January 18, 2023
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Dzs Inc Stock Fair Value – DZS INC ($NASDAQ:DZSI). provides a wide range of products and services for customers in the telecommunications industry. Recently, analysts have been taking a closer look at DZS INC. and find that it suggests the company is 50% undervalued. In order to determine its undervaluation, analysts looked at the company’s financials and compared it to other companies in the same industry. They found that DZS INC. had a significantly lower price-earnings ratio than its competitors, indicating that it was undervalued.
In addition, they also looked at the company’s cash flow and found that it was generating significantly less free cash flow than many of its peers. This further suggested that DZS INC. was undervalued. Analysts believe that the company’s undervaluation can be attributed to its lack of visibility in the marketplace. While DZS INC. has been successful in providing products and services to its customers, it has yet to fully capitalize on its potential. This lack of visibility has led to fewer investors being aware of the company’s capabilities and therefore unwilling to invest in it at its current prices. In order to capitalize on its potential and increase its value, analysts suggest that DZS INC. should focus on increasing its visibility and improving its brand image. This could involve marketing campaigns or increased advertising spending to reach a wider audience.
Additionally, they suggest that the company should look into expanding its product offerings or entering into new markets in order to increase its revenue potential. Overall, analysts believe that DZS INC. is currently 50% undervalued based on their findings and comparisons to its peers. If the company takes the steps necessary to increase its visibility and capitalize on its potential, it could see a significant increase in its value over time.
Share Price
Tuesday proved to be a rough day for DZS INC, as the stock opened at $13.0 and closed at $12.8, representing a drop of 1.6% from the prior closing price of 13.0. Analysts have identified several factors that have contributed to the stock’s current undervaluation. Primarily, DZS INC’s earnings over the past year have been lower than expected due to the current macroeconomic climate. This has caused the stock to suffer in comparison to its competitors and the broader market.
Additionally, DZS INC has not been able to capitalize on certain opportunities that have come up in their industry, leading to a further drop in their stock price. The good news is that analysts believe that DZS INC has potential to rebound in the near future. Despite the current undervaluation, they feel that with some strategic moves, the stock could make a strong recovery. One potential measure could be to increase its exposure in the market by launching new products or services that would appeal to a wider audience. Additionally, by focusing on cost-cutting measures and increasing their advertising budget, they could further their reach and generate more revenue. While it remains to be seen if DZS INC will be able to make a comeback, investors should keep an eye on the stock in the coming weeks to see if the valuation changes. With some smart moves and a bit of luck, DZS INC could be back on track in no time. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dzs Inc. More…
| Total Revenues | Net Income | Net Margin |
| 373.58 | -25.16 | -7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dzs Inc. More…
| Operations | Investing | Financing |
| -36.9 | -25.41 | 33.04 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dzs Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 346.07 | 235.79 | 3.95 |
Key Ratios Snapshot
Some of the financial key ratios for Dzs Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.1% | – | -8.9% |
| FCF Margin | ROE | ROA |
| -10.9% | -11.4% | -3.9% |
VI Analysis – Dzs Inc Stock Fair Value
DZS INC is a company whose fundamental performance reflects its long term potential. VI app provides a simple analysis of the company’s financials. According to the analysis, the intrinsic value of DZS INC share is estimated to be around $12.3. Currently, DZS INC shares are trading at $12.8, which is slightly overvalued by 4%. In general, companies are valued based on various metrics such as market capitalization, earnings per share, price to earnings ratio, dividend yield, return on equity and more. All these metrics help analysts to determine the intrinsic value of a company. By comparing the current market price with the intrinsic value, investors can determine whether the stock is undervalued or overvalued. Overvaluation of a stock means that its price is higher than its true worth. On the other hand, undervaluation means that the stock is trading at a price lower than its true worth. Investors should be careful while investing in stocks that are overvalued as they may not be able to get good returns from such stocks in the long run. Therefore, in the case of DZS INC, it is important to assess the fundamentals and compare the current market price with the intrinsic value before taking an investment decision. More…
VI Peers
The competition in the telecommunications industry is fierce. DZS Inc. is up against some of the biggest names in the business, including Extreme Networks Inc., ADVA Optical Networking SE, and Ciena Corp. Each company is striving to provide the best products and services to their customers. While DZS Inc. has a strong presence in the market, its competitors are not far behind.
– Extreme Networks Inc ($NASDAQ:EXTR)
With a market cap of $2.5 billion and a return on equity of 40.12%, Extreme Networks is a publicly traded networking company that provides software-driven networking solutions to enterprise customers. The company delivers high-performance switching, routing, and security solutions that enable customers to build agile, data-driven networks that connect their people, applications, and devices.
– ADVA Optical Networking SE ($LTS:0NOL)
ADVA Optical Networking SE has a market cap of 1.08B as of 2022, a Return on Equity of 4.24%. The company provides optical and Ethernet-based networking solutions.
– Ciena Corp ($NYSE:CIEN)
Ciena is a network specialist that provides equipment, software and services that support mission-critical applications for communications service providers, enterprises and governments worldwide. Its products and services enable its customers to drive revenue, reduce expenses and improve efficiency by delivering high-capacity, high-speed networking solutions. Ciena’s common stock is listed on the NASDAQ Global Select Market under the symbol CIEN and is included in the S&P 500 index.
ROE is return on equity and is a measure of how well a company uses investment funds to generate profits. A company with a higher ROE is using funds more effectively to generate profits. Ciena’s ROE of 6.6% indicates that it is using funds efficiently to generate profits.
Ciena’s market cap is 6.64B as of 2022. This means that the market value of Ciena’s outstanding shares is 6.64B. Ciena’s market cap is a good indicator of the company’s size and its position in the market.
Summary
Investment analysts have recently found DZS Inc. to be undervalued by 50%. This indicates that the company is currently trading for less than its estimated intrinsic value, and may provide an attractive opportunity for investors. As such, careful analysis of the company’s financials, industry trends, and other factors should be undertaken to determine if investing in DZS Inc. would be beneficial. Further research should include examining the company’s balance sheet, income statement, cash flow statement, as well as evaluating business operations and management performance.
Additionally, a risk assessment should be conducted to measure the potential volatility of the stock price. Analyzing these factors can help investors make informed decisions when considering investing in DZS Inc.
