Advance ZincTek Limited (ANO) AI Stock Analysis

• Market Cap: AU$77.37M
• Dividend Yield: N/A
• Average Volume (3M): 3.07K
• Price to Earnings (P/E): 62.4
• Beta (1Y): 0.69
• Revenue Growth: 24.88%
• EPS Growth: N/A
• Country: AU
• Employees: 25
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): <0.01
• Shares Outstanding: 62,646,107
• 10 Day Avg. Volume: 7,300
• 30 Day Avg. Volume: 3,070
• PEG Ratio: -0.17
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 3.98
• P/FCF Ratio: 27.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: AU$1.00 ▲(1.01% Upside)

Advance ZincTek Limited's overall stock score is driven primarily by its solid financial performance, characterized by strong revenue growth and financial stability. However, the high P/E ratio and lack of dividend yield suggest potential overvaluation. Technical indicators present a mixed picture, with some signs of the stock being overbought. The absence of recent earnings call insights and notable corporate events leaves the financial performance as the most significant factor in the score.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates a strong market position and demand for its products, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.

Financial Stability

Low leverage reflects financial prudence, reducing risk and providing stability, which is crucial for long-term sustainability.

Negative Factors

Net Profit Margin

A low net profit margin indicates potential inefficiencies or cost pressures, which could hinder profitability and competitiveness over time.

Return on Equity

Low return on equity may signal underutilization of shareholder funds, potentially impacting investor confidence and future capital raising.

Valuation Concerns

High valuation metrics can deter investment and imply expectations of significant growth, which may not be sustainable long-term.

Advance ZincTek Limited Business Overview & Revenue Model

Company Description

Advance ZincTek Limited, together with its subsidiaries, manufactures aluminum oxide powder, and zinc oxide dispersions and powder for use in the personal care sector in Australia, the United States, Canada, Europe, and internationally. It produces and distributes dispersion of mineral-only UV filters in cosmetic emollients that are used for sunscreen, skincare, and pharmaceutical formulations, as well as alumina plate-like powders used for cosmetic applications. The company operates through a network of distributors. The company was formerly known as Advance NanoTek Limited and changed its name to Advance ZincTek Limited in November 2021. Advance ZincTek Limited was incorporated in 1997 and is based in Rocklea, Australia.

How the Company Makes Money

Advance ZincTek Limited generates revenue primarily through the production and sale of zinc and zinc alloy products to various industries. The company operates a revenue model based on direct sales to manufacturers and distributors, leveraging long-term contracts and spot market transactions. Key revenue streams include the sale of raw zinc, zinc alloys, and specialized zinc-based products tailored to meet specific customer needs. Additionally, Advance ZincTek Limited benefits from strategic partnerships with major industrial clients and suppliers, enhancing its market reach and operational efficiency. Fluctuations in zinc prices and demand from sectors such as construction and automotive significantly influence its earnings.

Advance ZincTek Limited Financial Statement Overview

Summary

Advance ZincTek Limited demonstrates a solid financial performance with strong revenue growth and improved profitability margins. The balance sheet reflects financial stability with low leverage, while cash flow metrics indicate healthy cash generation. Continued focus on enhancing net profit margins and return on equity could further strengthen the company's financial position.

Income Statement

Advance ZincTek Limited shows a strong revenue growth rate of 20.4% in the latest year, recovering from a previous decline. The gross profit margin improved significantly to 58.8%, indicating better cost management. However, the net profit margin is relatively low at 10.2%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.039, indicating conservative leverage and financial stability. Return on equity is modest at 3.5%, suggesting moderate efficiency in generating returns from equity. The equity ratio is strong, highlighting a solid capital structure.

Cash Flow

Free cash flow growth is impressive at 66.8%, showing improved cash generation capabilities. The operating cash flow to net income ratio is robust at 2.21, indicating strong cash flow relative to earnings. The free cash flow to net income ratio of 0.67 suggests good cash conversion, though there is potential for further enhancement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.17M	12.17M	9.32M	13.74M	12.50M	6.52M
Gross Profit	7.16M	7.16M	846.00K	3.62M	3.91M	1.57M
EBITDA	3.14M	3.14M	252.00K	3.82M	5.10M	1.33M
Net Income	1.24M	1.24M	-903.00K	1.66M	2.19M	32.00K
Balance Sheet
Total Assets	38.04M	38.04M	37.74M	39.06M	38.36M	34.46M
Cash, Cash Equivalents and Short-Term Investments	629.00K	629.00K	163.00K	325.00K	1.33M	95.00K
Total Debt	1.40M	1.40M	1.99M	2.18M	2.54M	3.04M
Total Liabilities	2.27M	2.27M	3.36M	3.78M	3.37M	6.51M
Stockholders Equity	35.77M	35.77M	34.38M	35.28M	34.99M	27.96M
Cash Flow
Free Cash Flow	1.79M	1.79M	31.00K	1.61M	-1.59M	-2.65M
Operating Cash Flow	2.67M	2.67M	2.24M	4.42M	1.62M	1.39M
Investing Cash Flow	-1.42M	-1.42M	-2.21M	-3.49M	-2.17M	-4.04M
Financing Cash Flow	-786.00K	-786.00K	-193.00K	-1.93M	1.78M	2.48M

Advance ZincTek Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ANO, the sentiment is Negative. The current price of 0.99 is below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.13, and above the 200-day MA of 0.94, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 12.32 is Positive, neither overbought nor oversold. The STOCH value of 67.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ANO.

Advance ZincTek Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ANO	60 Neutral	AU$77.37M	62.37	3.53%	―	24.88%	―
HZR	42 Neutral	AU$154.44M	-17.88	-55.86%	―	―	64.63%
ATC	39 Underperform	AU$98.73M	-5.21	-39.14%	―	―	57.49%
LEL	39 Underperform	AU$41.44M	―	-13.86%	―	―	-12.34%
BKT	32 Underperform	AU$38.66M	-2.65	-15.13%	―	―	23.60%

Advance ZincTek Limited Corporate Events

Advance ZincTek Director Increases Stake in Company

Advance ZincTek Limited has announced a change in the director’s interest, with Lev Mizikovsky acquiring an additional 103,906 ordinary shares through an on-market trade, increasing his indirect holdings to 40,422,808 shares. This acquisition reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which may positively influence stakeholder perceptions.

Advance ZincTek Limited Director Increases Shareholding

Advance ZincTek Limited has announced a change in the director’s interest, with Lev Mizikovsky acquiring an additional 75,000 ordinary shares through an on-market trade. This acquisition increases Mizikovsky’s indirect holdings to over 40.3 million shares, potentially signaling confidence in the company’s future prospects and impacting its market perception.

Advance ZincTek Addresses FDA Compliance Issues

Advance ZincTek Limited has received feedback from the U.S. Food and Drug Administration (FDA) following a routine inspection, highlighting several compliance issues related to Good Manufacturing Practice (GMP). These issues pertain to supplier qualification, precursor handling processes, and digital record-keeping systems, among others. The company has stated that there is no impact on the supply to U.S. customers and no concerns about product quality. In response, Advance ZincTek plans to engage U.S. regulatory consultants to ensure alignment with FDA requirements, provide additional GMP training, and increase investment in compliance efforts. The company is committed to resolving all outstanding observations and will keep stakeholders informed of any significant developments.

Advance ZincTek Secures Unanimous Approval at AGM

Advance ZincTek Limited announced that all resolutions were passed at their Annual General Meeting, including the directors’ remuneration report, the re-election of Mr. Rade Dudurovic as a Director, and the approval of a proposed capital return. The unanimous approval of these resolutions indicates strong shareholder support and may positively impact the company’s governance and financial strategies.

Veganic SKN Ltd Takes Legal Action Against Cancer Council Australia

Veganic SKN Ltd has initiated legal proceedings against Cancer Council Australia, accusing it of misleading conduct related to the chemical UV filters in its sunscreens, specifically 4-MBC and Homosalate. Advance ZincTek Limited has stated that it does not plan to join these proceedings at this time, which suggests a cautious approach to the legal situation, potentially minimizing immediate operational disruptions or reputational impacts.

Advance ZincTek Sees Strong Revenue Growth Amid Market Challenges

Advance ZincTek Limited reported a significant 26.83% increase in first-quarter revenue for FY26, totaling $3,011,405, despite a 12.87% rise in operating expenses. The company experienced regional revenue growth in North America, Australia, and Europe, although Asia saw a slight decline. The influx of substandard imported products in Australia has impacted zinc oxide sales, particularly in the sunscreen segment, prompting the company to urge regulatory action.

Advance ZincTek Unaffected by New US Tariffs on Australian Pharmaceuticals

Advance ZincTek Limited has assessed the recent US announcement of 100% tariffs on certain Australian pharmaceuticals and believes its zinc oxide products will not be affected. The products are classified as APIs, not branded or patented, and have historically been excluded from similar tariffs. The company maintains a strategic inventory in the US, ensuring no immediate operational impact. It is monitoring diplomatic discussions and does not foresee any significant financial impact for FY25.