Zenith Energy (ZEN) AI Stock Analysis

• Market Cap: £20.11M
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.46
• Revenue Growth: 65.32%
• EPS Growth: 97.00%
• Country: UK
• Employees: 34
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 561,803,700
• 10 Day Avg. Volume: 1,739,406
• 30 Day Avg. Volume: 1,058,308
• PEG Ratio: -0.40
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 20.56
• P/FCF Ratio: -3.88
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: 3.50p ▼(-2.23% Downside)

Zenith Energy's overall stock score is primarily impacted by its financial performance and valuation concerns. Despite strong revenue growth, the company faces significant profitability and cash flow challenges. Technical indicators suggest a cautious approach, and the negative P/E ratio highlights valuation risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Zenith's products and services, enhancing its market position and potential for future expansion.

Operational Margins

Positive operational margins suggest effective cost management and operational efficiency, contributing to long-term profitability and competitiveness.

Leverage Management

Improved leverage indicates better financial stability, reducing risk and enhancing the company's ability to invest in growth opportunities.

Negative Factors

Profitability Concerns

Low and volatile profit margins highlight challenges in cost control and pricing power, potentially impacting long-term profitability and shareholder returns.

Cash Flow Challenges

Persistent cash flow deficits can limit financial flexibility and investment capacity, posing risks to sustainable growth and operational resilience.

Return on Equity

Low return on equity indicates inefficiency in using shareholder capital to generate profits, potentially affecting investor confidence and capital attraction.

Zenith Energy Business Overview & Revenue Model

Company Description

Zenith Energy Ltd., together with its subsidiaries, explores for and develops oil and natural gas in Italy, the Republic of the Congo, and internationally. It also produces and sells electricity and condensate, as well as engages in oil and gas drilling activities. The company was formerly known as Canoel International Energy Ltd. and changed its name to Zenith Energy Ltd. in October 2014. Zenith Energy Ltd. was incorporated in 2007 and is headquartered in Calgary, Canada.

How the Company Makes Money

Zenith Energy generates revenue through several key streams. Primarily, the company earns money from the extraction and sale of crude oil and natural gas, benefiting from both domestic and international market prices. Additionally, Zenith invests in renewable energy projects, such as solar and wind farms, which provide revenue through the sale of electricity to grid operators and power purchase agreements with commercial entities. The company also engages in energy trading, capitalizing on market fluctuations to buy and sell energy commodities. Significant partnerships with local and regional governments, as well as collaborations with other energy firms, enhance its operational capabilities and market reach, further contributing to its earnings.

Zenith Energy Financial Statement Overview

Summary

Zenith Energy shows strong revenue growth and improving operational margins, but profitability and cash flow stability remain concerns. The balance sheet indicates reduced leverage, yet cash flow challenges need addressing for sustainable financial health.

Income Statement

Zenith Energy has shown significant revenue growth with a 60.58% increase in the latest year, indicating strong top-line expansion. However, the gross profit margin is low at 3.73%, and the net profit margin is volatile, though it improved to 50.72% from negative figures in previous years. The EBIT and EBITDA margins are positive, reflecting operational improvements, but the historical volatility in profitability remains a concern.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.74, indicating a manageable level of leverage compared to previous years. However, the return on equity is low at 1.66%, suggesting limited efficiency in generating returns for shareholders. The equity ratio is not provided, but the overall balance sheet shows a trend towards better financial stability.

Cash Flow

Zenith Energy's cash flow situation is challenging, with negative operating and free cash flows. Despite a 44.82% growth in free cash flow, the company still faces cash flow deficits. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to reported earnings. The free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and profitability, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.15M	2.15M	1.79M	13.16M	8.24M	596.00K
Gross Profit	446.00K	80.00K	-3.23M	2.66M	3.78M	-1.84M
EBITDA	10.59M	9.41M	-33.42M	-4.94M	-2.00M	-1.60M
Net Income	1.09M	1.09M	-42.37M	-12.83M	64.44M	3.52M
Balance Sheet
Total Assets	164.72M	164.72M	140.02M	262.91M	259.30M	119.44M
Cash, Cash Equivalents and Short-Term Investments	3.20M	3.20M	207.00K	1.44M	1.15M	1.63M
Total Debt	48.50M	48.50M	41.68M	33.94M	18.34M	12.74M
Total Liabilities	99.09M	99.09M	90.04M	171.26M	156.21M	95.63M
Stockholders Equity	65.63M	65.63M	49.98M	91.65M	103.09M	23.80M
Cash Flow
Free Cash Flow	-11.38M	-11.38M	-4.24M	-16.27M	-13.19M	-9.87M
Operating Cash Flow	-10.97M	-10.97M	-4.19M	-15.84M	-13.13M	-9.81M
Investing Cash Flow	1.24M	1.24M	-593.00K	-430.00K	-2.17M	-202.00K
Financing Cash Flow	12.71M	12.71M	3.55M	16.56M	14.82M	10.43M

Zenith Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZEN, the sentiment is Positive. The current price of 3.58 is above the 20-day moving average (MA) of 3.40, above the 50-day MA of 3.35, and below the 200-day MA of 6.77, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 56.34 is Neutral, neither overbought nor oversold. The STOCH value of 77.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZEN.

Zenith Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EOG	53 Neutral	£18.45M	-2.68	―	―	―	―
SOU	53 Neutral	£19.56M	-2.41	-45.38%	―	―	―
MATD	50 Neutral	£22.31M	-2.14	-56.16%	―	―	―
ZEN	49 Neutral	£20.11M	-19.89	-1.55%	―	65.32%	97.00%
PRD	48 Neutral	£29.17M	-9.88	-12.26%	―	―	―
CHAR	47 Neutral	£27.27M	-1.37	-31.10%	―	-2.69%	-5.00%

Zenith Energy Corporate Events

Zenith Energy’s Solar Pipeline Valued at €27.5 Million, Plans 50% Stake Sale

Zenith Energy Ltd. announced the results of an independent valuation of its solar energy development pipeline, which has a total capacity of 110.5 MWp and is valued at €27.5 million. The company plans to sell a 50% interest in the pipeline once projects reach Ready-to-Build status, with the implied value of this interest being €13.75 million. This valuation supports Zenith’s strategic shift towards solar energy development in Europe, following asset seizures in Tunisia, and reassures shareholders about the value-creation potential of its renewable energy activities.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £4.00 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Strengthens Legal Team for Key Arbitration

Zenith Energy Ltd. has expanded its legal team for ongoing arbitration proceedings against the Republic of Tunisia under the UK-Tunisia Bilateral Investment Treaty. The company has appointed Ben Juratowitch KC and Matthieu Gregoire, both experienced barristers in international arbitration, to strengthen its case. This strategic move aims to enhance Zenith’s position in seeking redress for damages suffered by its UK subsidiaries due to alleged unlawful conduct by Tunisian authorities. The upcoming final hearings in April 2026 are anticipated to be pivotal for the company’s future operations and stakeholder interests.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £4.00 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Reports Increased Revenue Amid Strategic Shifts

Zenith Energy Ltd. has released its unaudited financial results for the first half of 2025, reporting revenues of CAD$1,090k from oil and natural gas, an increase from the previous year. The company produced no oil from its Tunisian assets but increased electricity sales from its Italian assets, indicating a shift in operational focus and potential strategic adjustments in its asset management.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £4.00 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Faces Unlawful Oil Sale and Operational Challenges in Tunisia

Zenith Energy Ltd. has faced significant challenges in its Tunisian operations, particularly with the Robbana and El Bibane oil concessions. The Tunisian authorities have obstructed oil sales, leading to financial strain on Zenith’s subsidiary, Ecumed Petroleum Tunisia Ltd (EPT), which has incurred costs of approximately US$2 million. The situation escalated with the unauthorized sale of 3,987 barrels of oil by the Tunisian national oil company, ETAP, without compensation to EPT. This action is part of a broader pattern of alleged unlawful expropriation and breaches of contractual obligations by Tunisian authorities, prompting Zenith to pursue legal remedies to assert its rights and seek justice.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £4.00 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Advances Solar Projects in Italy with Strategic Financing

Zenith Energy Ltd. has initiated a tender for constructing solar energy projects in Italy’s Puglia region, with a total capacity of 7 MWp. The first project, Andria-1, is ready to build, while Andria-2 and Barletta-1 are in development and expected to be ready within four months. These projects benefit from favorable grid connections and reduced construction costs, positioning Zenith strategically in the region. The company is negotiating with banks to finance up to 90% of construction costs, aiming to generate revenue from renewable energy and expand its project pipeline.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £3.00 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Expands Solar Portfolio with Puglia Acquisition

Zenith Energy Ltd. has announced the acquisition of a solar energy development project in the Puglia region of Italy, expanding its solar portfolio to over 100 MWp. This acquisition includes a 12 MWp photovoltaic capacity and a 3 MW Battery Energy Storage System, enhancing the company’s strategic presence in Italy’s renewable energy sector. The project is expected to reach Ready-to-Build status within 12-16 months, with Zenith planning to sell portions of its development portfolio to generate immediate profit while also constructing selected assets to create long-term revenue streams. This dual approach aims to strengthen Zenith’s financial profile and support sustained growth in solar and storage markets.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £2.50 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Gains FCA Approval for UK Prospectus

Zenith Energy Ltd. has received approval from the UK Financial Conduct Authority for the publication of its UK prospectus, facilitating the admission of 219,808,136 common shares to the London Stock Exchange’s Main Market. This move, which does not involve issuing new shares, is expected to enhance Zenith’s market presence and provide greater transparency to stakeholders.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £2.50 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy to Appeal Court Decision in SMP Legal Dispute

Zenith Energy Ltd. announced a partial victory in a legal case against SMP Energies, where the Paris Commercial Court recognized some of Zenith’s claims but awarded only 160,000 EUR in compensation. Despite the court’s acknowledgment of Zenith’s arguments, a larger invoice from SMP remains payable due to contractual terms. Zenith plans to appeal the decision, highlighting the case’s long history and its impact on their operations in the Tilapia oilfield, and remains confident in the company’s strategic direction.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £3.00 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Completes 2027 Bond Coupon Payment

Zenith Energy Ltd. has successfully made a full coupon payment for its 2027 multi-currency Euro Medium Term Notes issued on the Vienna MTF of the Vienna Stock Exchange. This payment underscores Zenith’s financial stability and commitment to its obligations, potentially enhancing its reputation in the energy sector and assuring stakeholders of its operational reliability.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £4.00 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.