Fact based stock research
Zyxel (TSEC:3704)

TW0003704003

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Zyxel stock research in summary

unizyx.com.tw

ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Zyxel (Communications Equipment, Taiwan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Zyxel are a good value (attractively priced) with a consolidated Value Rank of 75 (better than 75% of alternatives), are safely financed (Safety Rank of 53, which means low debt burdens), but show below-average growth (Growth Rank of 21). ...read more

RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Zyxel's financial characteristics. As the company Zyxel's key financial metrics exhibit good value (Obermatt Value Rank of 75) but low growth (Obermatt Growth Rank of 21) while being safely financed (Obermatt Safety Rank of 53), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 75% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	75
Growth Rank	21
Safety Rank	53
Combined Rank	49

Country	Taiwan
Industry	Communications Equipment
Index	Artificial Intelligence, FTSE Taiwan
Size class	Small

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Zyxel

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	93	77	73	75
GROWTH
GROWTH	27	61	71	21
SAFETY
SAFETY	89	55	87	53
SENTIMENT
SENTIMENT	88	92	59	^new
360° VIEW
360° VIEW	83	88	95	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Zyxel is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	93	77	73	75
GROWTH
GROWTH	27	61	71	21
SAFETY
SAFETY	89	55	87	53
COMBINED
COMBINED	89	77	100	49

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Zyxel the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 75 (better than 75% compared with alternatives) for 2025, Zyxel shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Zyxel. Price-to-Sales (P/S) is 93, which means that the stock price compared with what market professionals expect for future sales is lower than for 93% of comparable companies, indicating a good value regarding Zyxel's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 75% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 83. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 29% of all competitors have even lower dividend yields than Zyxel (a Dividend Yield Rank of 29). 71% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 75, is a buy recommendation based on Zyxel's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	88	79	92	93
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	88	81	14	75
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	91	61	75	83
DIVIDEND YIELD
DIVIDEND YIELD	23	50	45	29
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	93	77	73	75

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Zyxel; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 21 (better than 21% compared with alternatives), Zyxel shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Zyxel. Only Capital Growth has a good rank of 93, which means that currently professionals expect the company to grow its invested capital more than 10% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 15 which means that currently professionals expect the company to grow less than 85% of its competitors. Profit Growth with a rank of 10 and Stock Returns with a rank of 29 are also low (below 71% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 21, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Zyxel is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	11	12	69	15
PROFIT GROWTH
PROFIT GROWTH	95	67	93	10
CAPITAL GROWTH
CAPITAL GROWTH	39	63	38	93
STOCK RETURNS
STOCK RETURNS	13	67	31	29
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	27	61	71	21

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Zyxel.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 53 (better than 53% compared with alternatives), the company Zyxel has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Zyxel is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Zyxel and the other two below average. Refinancing is at 99, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 99% of its competitors. But Leverage is high with a rank of 34, meaning the company has an above-average debt-to-equity ratio. It has more debt than 66% of its competitors. Liquidity is also on the riskier side with a rank of 22, meaning the company generates less profit to service its debt than 78% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 53 (better than 53% compared with alternatives), Zyxel has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Zyxel are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Zyxel and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	58	22	51	34
REFINANCING
REFINANCING	100	91	94	99
LIQUIDITY
LIQUIDITY	57	43	49	22
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	89	55	87	53

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Zyxel and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	97	93	^new
OPINIONS CHANGE
OPINIONS CHANGE	50	50	15	^new
PRO HOLDINGS
PRO HOLDINGS	88	56	26	^new
MARKET PULSE
MARKET PULSE	n/a	100	97	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	88	92	59	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Zyxel.
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