ZTE Corporation (ZTCOF)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
ZTE Corporation (ZTCOF) trades at $3.68 with AI Score 50/100 (Grade B). ZTE Corporation is a global provider of integrated information and communication technology solutions, operating across Asia, Africa, Europe, the Americas, and Oceania. Market cap: $17.64B, Sector: Technology.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for ZTCOF: ZTCOF does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates ZTCOF against Technology peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
ZTCOF: the 1 perspectives are evenly split.
How is this calculated? →ZTE Corporation (ZTCOF) Technology Profile & Competitive Position
ZTE Corporation, a global technology firm, delivers integrated ICT solutions, focusing on carriers' networks, consumer business, and government/corporate sectors. With a strong presence in Asia and expanding globally, ZTE competes in the communication equipment industry, marked by innovation and infrastructure development, while maintaining a moderate risk profile reflected by its beta of 0.53.
What Is the Investment Thesis for ZTCOF?
ZTE Corporation presents a mixed investment thesis. The company's established presence in the ICT sector, particularly in emerging markets, provides a foundation for growth. ZTE's focus on 5G technology and its applications in various sectors, including government and corporate, could drive revenue growth. However, the company's relatively low profit margin of 4.2% and negative free cash flow pose challenges. The debt-to-equity ratio of 86.34 also indicates a high level of financial leverage. Key catalysts include the expansion of 5G infrastructure globally and increased demand for ZTE's consumer products. Investors should closely monitor the company's ability to improve profitability and manage its debt levels.
Based on FMP financials and quantitative analysis
ZTCOF Key Highlights
- Market capitalization of $17.64B, reflecting its significant presence in the global ICT market.
- Gross margin of 30.1%, indicating the profitability of its core operations.
- Return on Equity (ROE) of 7.5%, demonstrating its efficiency in generating profits from shareholders' equity.
- Debt-to-Equity ratio of 86.34, indicating a relatively high level of financial leverage.
- Beta of 0.53, suggesting lower volatility compared to the overall market.
Who Are ZTCOF's Competitors?
ZTCOF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ERIC Telefonaktiebolaget LM Ericsson (publ) | $10.92 | +1.16% | $36.10B | 58 |
| NOK Nokia Oyj provides mobile, fixed, and cloud network solutions globally. The company | $12.48 | +3.40% | $67.40B | 59 |
| ONDS Ondas Holdings Inc. | $7.66 | +3.31% | $4.00B | 72 |
| CRDO Credo Technology Group Holding Ltd | $268.87 | +11.14% | $50.14B | 67 |
| ASTS AST SpaceMobile, Inc. | $80.64 | -5.27% | $32.81B | 66 |
| ENAFF Enablence Technologies Inc. | $5.49 | -8.53% | $115.63M | 65 |
| VCRA Vocera Communications, Inc. | $79.13 | +0.00% | 52 | |
| ADTN ADTRAN Holdings, Inc. | $12.99 | +2.21% | $1.05B | 52 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are ZTCOF's Key Strengths?
- Comprehensive ICT solutions portfolio
- Established presence in emerging markets
- Expertise in 5G technology
- Strong relationships with telecom carriers
What Are ZTCOF's Weaknesses?
- Relatively low profit margin
- High debt-to-equity ratio
- Negative free cash flow
- Dependence on specific markets
What Could Drive ZTCOF Stock Higher?
- Potential new contracts for 5G infrastructure projects in emerging markets.
- Expansion of ZTE's product portfolio in consumer electronics.
- Increased adoption of ZTE's IoT solutions by government and corporate clients.
What Are the Key Risks for ZTCOF?
- Financial-distress signal — its Altman Z-Score of 1.77 sits in the distress zone (elevated bankruptcy risk).
- Geopolitical tensions and trade restrictions impacting ZTE's global operations.
- Increased competition from other ICT companies.
- Cybersecurity threats and data privacy concerns.
- Regulatory changes and compliance requirements.
What Are the Growth Opportunities for ZTCOF?
- Expansion of 5G Infrastructure: The ongoing rollout of 5G networks globally presents a significant growth opportunity for ZTE. As countries invest in upgrading their telecommunications infrastructure, ZTE can leverage its expertise in wireless and wireline access technologies to secure contracts for network equipment and solutions. The global 5G infrastructure market is projected to reach $47.78 billion by 2027, growing at a CAGR of 54.8% from 2020. ZTE's ability to provide cost-effective and reliable 5G solutions will be crucial in capturing market share.
- Growth in IoT Solutions: The increasing adoption of Internet of Things (IoT) devices and applications across various industries, including manufacturing, healthcare, and transportation, offers a substantial growth opportunity for ZTE. The company's Government and Corporate Business segment can leverage its expertise in IoT, big data, and cloud computing to provide customized solutions for government and corporate clients. The global IoT market is expected to reach $1.39 trillion by 2026, growing at a CAGR of 12.5% from 2021. ZTE's ability to develop innovative and secure IoT solutions will be critical in capitalizing on this growth.
- Increased Demand for Consumer Electronics: The growing demand for smartphones, home information terminals, and other consumer electronics in emerging markets presents a significant growth opportunity for ZTE. The company's Consumer Business segment can leverage its brand recognition and distribution channels to expand its market share in these regions. The global smartphone market is projected to reach $622.2 billion by 2027, growing at a CAGR of 8.1% from 2020. ZTE's ability to offer competitive and innovative consumer electronics will be crucial in capturing market share.
- Strategic Partnerships and Alliances: Forming strategic partnerships and alliances with other technology companies and industry players can provide ZTE with access to new markets, technologies, and resources. Collaborating with companies that have complementary expertise can enhance ZTE's product offerings and expand its customer base. For example, partnering with a cloud computing provider can enable ZTE to offer integrated cloud-based solutions to its customers. The ability to forge successful partnerships will be essential for ZTE's long-term growth and competitiveness.
- Investment in Research and Development: Continued investment in research and development (R&D) is crucial for ZTE to maintain its competitive edge and develop innovative technologies. Focusing on areas such as 6G, artificial intelligence, and cybersecurity can enable ZTE to create new products and services that meet the evolving needs of its customers. The company's R&D spending as a percentage of revenue should be closely monitored to assess its commitment to innovation. A strong R&D pipeline will be essential for ZTE to drive future growth and profitability.
What Opportunities Does ZTCOF Have?
- Expansion of 5G infrastructure globally
- Growth in IoT solutions
- Increased demand for consumer electronics
- Strategic partnerships and alliances
What Threats Does ZTCOF Face?
- Intense competition in the ICT sector
- Geopolitical risks and trade tensions
- Cybersecurity threats
- Regulatory changes and compliance requirements
What Are ZTCOF's Competitive Advantages?
- Established presence in the ICT sector.
- Strong relationships with telecom carriers.
- Expertise in 5G technology.
- Comprehensive product portfolio.
What Does ZTCOF Do?
Founded in 1985 and headquartered in Shenzhen, China, ZTE Corporation has evolved into a global provider of integrated information and communication technology (ICT) solutions. The company operates across three primary segments: Carriers' Networks, Consumer Business, and Government and Corporate Business. The Carriers' Networks segment offers a range of technologies and product solutions, including wireless and wireline access, bearer systems, core networks, and server and storage solutions. This segment is crucial for supporting telecommunication infrastructure and services worldwide. The Consumer Business segment focuses on developing, producing, and selling home information terminals, smartphones, mobile internet terminals, and fusion terminals. It also provides related software applications and value-added services, catering to the growing demand for connected devices and digital entertainment. The Government and Corporate Business segment provides informatization solutions for government and corporate clients, leveraging products such as communication networks, IoT, big data, and cloud computing. This segment supports the digital transformation initiatives of public and private sector organizations. ZTE's global presence extends across Asia, Africa, Europe, the Americas, and Oceania, reflecting its commitment to serving diverse markets and customers. The company's focus on innovation and technology advancement positions it as a key player in the rapidly evolving ICT landscape.
What Products and Services Does ZTCOF Offer?
- Provides wireless and wireline access technologies.
- Develops and sells smartphones and mobile internet terminals.
- Offers bearer systems and core network solutions.
- Provides server and storage solutions.
- Offers informatization solutions for government and corporations.
- Develops and sells home information terminals and fusion terminals.
- Provides related software application and value-added services.
How Does ZTCOF Make Money?
- Sells network equipment and solutions to telecom carriers.
- Sells consumer electronics, including smartphones and home terminals.
- Provides IT solutions and services to government and corporate clients.
- Generates revenue through software applications and value-added services.
What Industry Does ZTCOF Operate In?
ZTE Corporation operates in the communication equipment industry, a sector characterized by rapid technological advancements and intense competition. The global market for communication equipment is driven by the increasing demand for high-speed internet, 5G infrastructure, and IoT solutions. ZTE competes with other major players in the industry, such as Huawei and Ericsson. The industry is also influenced by government policies and regulations related to cybersecurity and data privacy. As the demand for digital transformation grows, companies like ZTE are positioned to capitalize on the opportunities in the communication equipment market.
Who Are ZTCOF's Key Customers?
- Telecommunication carriers
- Government agencies
- Corporate clients
- Individual consumers
Company Profile
ZTE Corporation operates in the Communication Equipment industry within the Technology sector. It is headquartered in Shenzhen, CN. The company is led by CEO Ziyang Xu. ZTCOF has traded publicly since 2010.
How ZTE Corporation Is Valued
ZTE Corporation carries a market capitalization of $17.64B, placing it in the large-cap category. Relative to its peer group, ZTCOF's quantitative score of 50/100 is below the peer average of 64/100.
ROE 6%Key Financial Metrics
Return on equity for ZTE Corporation stands at 5.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.0%, showing how much profit it generates from its asset base. ZTCOF trades at a trailing price-to-earnings ratio of 38.89, roughly in line with the Technology sector average of ~38x. Its free cash flow yield is -1.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.66 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.6%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 6/9Financial Health
ZTE Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.77 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project ZTE Corporation revenue of about $147.36B for fiscal 2026, with EPS near $1.29. The estimate reflects 9 contributing analysts.
ZTCOF Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in ZTE's strategic direction, indicating positive expectations for future performance.
- Community sentiment has shifted positively as users discuss ZTE's advancements in 5G technology, positioning it well in a growing market.
- Increased contracts with telecom companies highlight ZTE's robust demand, reinforcing its role as a key player in network infrastructure.
- Recent news of partnerships in emerging markets has sparked optimism, indicating ZTE's potential for expansion and revenue growth.
Bear Case
- Concerns over regulatory scrutiny in various markets have dampened investor sentiment, leading to a cautious outlook on ZTE's operations.
- Negative discussions in the community reflect fears about supply chain disruptions, which could impact ZTE's ability to meet demand.
- Recent reports of competition intensifying in the telecom sector have raised doubts about ZTE's market share sustainability.
- Ongoing geopolitical tensions may affect ZTE's global operations, creating uncertainty and increasing risk for potential investors.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
ZTCOF Latest News
No recent news available for ZTCOF.
ZTCOF Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ZTCOF.
Price Targets
Wall Street price target analysis for ZTCOF.
ZTCOF MoonshotScore
What does this score mean?
The MoonshotScore rates ZTCOF's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
ZTCOF OTC Market Information
The OTC Other tier, where ZTCOF trades, represents the lowest tier of the OTC market. Companies in this tier may not meet the minimum financial standards required for higher tiers like OTCQX or OTCQB, or they may choose not to comply with those standards. This tier often includes companies that are distressed, in bankruptcy, or have limited operating history. Investing in companies on the OTC Other tier carries significant risks due to the lack of regulatory oversight and transparency compared to exchanges like the NYSE or NASDAQ.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited regulatory oversight and transparency
- Potential for inaccurate or outdated financial information
- Higher risk of fraud or manipulation
- Limited liquidity and wider bid-ask spreads
- Greater price volatility
- Verify the company's registration and legal status.
- Obtain and review the company's most recent financial statements, if available.
- Assess the company's management team and their track record.
- Research the company's industry and competitive landscape.
- Understand the company's business model and revenue streams.
- Evaluate the company's risk factors and potential liabilities.
- Consult with a qualified financial advisor before investing.
- Established operating history since 1985
- Global presence and operations in multiple countries
- Significant number of employees (65,095)
- Presence in the communication equipment industry
ZTCOF Technology Stock FAQ
What does ZTE Corporation do?
ZTE Corporation is a global provider of integrated information and communication technology (ICT) solutions. The company operates through three segments: Carriers' Networks, Consumer Business, and Government and Corporate Business. The Carriers' Networks segment provides wireless and wireline access, bearer systems, core networks, and server and storage solutions. The Consumer Business segment focuses on developing, producing, and selling home information terminals, smartphones, and mobile internet terminals. The Government and Corporate Business segment offers informatization solutions for government and corporate clients, leveraging products such as communication networks, IoT, big data, and cloud computing. ZTE's business model involves selling network equipment, consumer electronics, and IT solutions to a diverse range of customers, including telecom carriers, government agencies, and individual consumers.
What do analysts say about ZTCOF stock?
Analyst coverage of ZTCOF is limited due to its OTC listing. However, considering ZTE Corporation's fundamentals, the company's market capitalization is $24.36 billion. Its profit margin is 4.2%, and its gross margin is 30.1%. The company's ROE is 7.5%, and its debt-to-equity ratio is 86.34. The company's beta is 0.53. Investors should carefully consider these metrics and the company's risk factors before making an investment decision. The lack of analyst coverage and the risks associated with OTC trading should also be taken into account.
What are the main risks for ZTCOF?
ZTE Corporation faces several risks, including intense competition in the ICT sector, geopolitical risks and trade tensions, cybersecurity threats, and regulatory changes. The company's relatively low profit margin and high debt-to-equity ratio also pose challenges. As an OTC-listed company, ZTCOF is subject to limited regulatory oversight and transparency, which increases the risk of fraud or manipulation. Investors should carefully assess these risks and conduct thorough due diligence before investing in ZTCOF. The company's ability to manage these risks will be crucial for its long-term success.
What are the key factors to evaluate for ZTCOF?
ZTE Corporation (ZTCOF) holds an AI score of 50/100 (moderate). Not financial advice.
How frequently does ZTCOF data refresh on this page?
ZTCOF prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven ZTCOF's recent stock price performance?
ZTE Corporation (ZTCOF) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Comprehensive ICT solutions portfolio. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider ZTCOF overvalued or undervalued right now?
Valuing ZTE Corporation (ZTCOF) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying ZTCOF?
Before investing in ZTE Corporation (ZTCOF), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- OTC data may be less reliable than exchange-listed data.
- AI analysis pending, which may provide further insights.