Is Zoono Group Limited (ASX:ZNO) A Basic Materials Leader?
Yolanda Lovett October 2, 2017
Zoono Group Limited (ASX:ZNO), a AUD$54.61M small-cap, operates in the basic materials industry which supplies materials for construction. This means it is highly sensitive to changes in the economic cycle, a key driver of building activities. In addition to cyclicality, chemicals companies face the issue of environmental concerns. This is a key risk that investors have to keep in mind when looking at stocks such as XYZ due to the risky nature of its activities, which may impact future cash flows. Basic material analysts are forecasting for the entire industry, a strong double-digit growth of 21.43% in the upcoming year, and a whopping growth of 46.73% over the next couple of years. However this rate still came in below the growth rate of the Australian stock market as a whole. An interesting question to explore is whether we can we benefit from entering into the chemicals sector right now. Today, I will analyse the industry outlook, as well as evaluate whether ZNO is lagging or leading its competitors in the industry.View our latest analysis for Zoono Group
From Simply Wall Street
ZNO Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
