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Zenith Energy (GB:ZEN)
:ZEN
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Zenith Energy (ZEN) AI Stock Analysis

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GB:ZEN

Zenith Energy

(LSE:ZEN)

Rating:46Neutral
Price Target:
4.00p
▲(6.67% Upside)
Zenith Energy's overall stock score is primarily impacted by its financial performance and technical analysis. Despite strong revenue growth, the company faces significant challenges with profitability and cash flow. The technical indicators suggest bearish momentum, and the valuation metrics highlight concerns about unprofitability. While corporate events show some positive financial stability, legal challenges pose additional risks.

Zenith Energy (ZEN) vs. iShares MSCI United Kingdom ETF (EWC)

Zenith Energy Business Overview & Revenue Model

Company DescriptionZenith 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 MoneyZenith Energy generates revenue through multiple streams, including the sale of generated electricity from its renewable energy projects, power purchase agreements (PPAs) with utilities and large corporations, and consulting services focused on energy efficiency and sustainability. The company's core revenue comes from long-term contracts that ensure a steady cash flow from its energy generation assets. Additionally, strategic partnerships with governmental agencies and private enterprises enhance its project financing capabilities and expand its market reach, contributing to its overall earnings. The increasing global emphasis on renewable energy and sustainability initiatives further supports its revenue growth.

Zenith Energy Financial Statement Overview

Summary
Zenith Energy's financial performance is weak, characterized by negative profit margins and cash flows. The income statement reflects significant profitability challenges, operational inefficiencies, and erratic revenue growth. The balance sheet is stressed with high debt levels and negative ROE, while cash flows are unable to effectively convert income into cash, presenting sustainability risks.
Income Statement
30
Negative
Zenith Energy shows significant challenges in profitability with negative net profit margins and gross profit margins over the years. The revenue growth rate has been erratic, with a notable decline from 2023 to 2024. EBIT and EBITDA margins are negative, indicating operational inefficiencies and struggles in generating positive earnings.
Balance Sheet
45
Neutral
The company's debt-to-equity ratio is relatively high, indicating reliance on debt financing. Return on Equity (ROE) is negative, reflecting the net losses. The equity ratio shows a declining trend, suggesting increasing liabilities relative to assets, which could pose stability risks.
Cash Flow
35
Negative
Zenith Energy has faced difficulties in generating positive cash flows, with a negative free cash flow trend. The operating cash flow to net income ratio is concerning, showing inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, highlighting cash generation issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.34M2.15M1.79M13.16M8.24M596.00K
Gross Profit-335.00K80.00K-3.23M2.66M3.78M-1.84M
EBITDA-12.65M9.41M-33.42M-4.94M-5.32M-6.06M
Net Income-27.52M1.09M-42.37M-12.83M64.44M3.52M
Balance Sheet
Total Assets151.98M164.72M140.02M262.91M259.30M119.44M
Cash, Cash Equivalents and Short-Term Investments86.00K3.20M207.00K1.44M1.15M1.63M
Total Debt48.44M48.50M41.68M33.94M18.34M12.74M
Total Liabilities98.24M99.09M90.04M171.26M156.21M95.63M
Stockholders Equity53.74M65.63M49.98M91.65M103.09M23.80M
Cash Flow
Free Cash Flow-7.86M-11.38M-4.24M-16.27M-13.19M-9.87M
Operating Cash Flow-7.58M-10.97M-4.19M-15.84M-13.13M-9.81M
Investing Cash Flow-823.00K1.24M-593.00K-430.00K-2.17M-202.00K
Financing Cash Flow7.03M12.71M3.55M16.56M14.82M10.43M

Zenith Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.75
Price Trends
50DMA
9.52
Negative
100DMA
9.89
Negative
200DMA
7.70
Negative
Market Momentum
MACD
-1.42
Negative
RSI
28.21
Positive
STOCH
51.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZEN, the sentiment is Negative. The current price of 3.75 is below the 20-day moving average (MA) of 3.86, below the 50-day MA of 9.52, and below the 200-day MA of 7.70, indicating a bearish trend. The MACD of -1.42 indicates Negative momentum. The RSI at 28.21 is Positive, neither overbought nor oversold. The STOCH value of 51.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ZEN.

Zenith Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
C$4.15B0.9716.40%5.23%10.45%-57.37%
46
Neutral
£13.30M
£19.95M-2.11%
£19.72M-0.21%
£15.08M-137.88%
£15.52M
£23.68M-9.54%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ZEN
Zenith Energy
3.75
2.55
212.50%
GB:CEG
Challenger Energy Group
8.00
1.75
28.00%
GB:PXEN
Prospex Oil and Gas
4.65
-1.25
-21.19%
GB:SOU
Sound Energy
0.75
-0.12
-13.79%
GB:MATD
Petro Matad
0.82
-1.93
-70.18%
GB:PRD
Predator Oil & Gas Holdings Plc
3.35
-6.65
-66.50%

Zenith Energy Corporate Events

Private Placements and FinancingFinancial Disclosures
Zenith Energy Completes Coupon Payments on Euro Medium Term Notes
Positive
Aug 15, 2025

Zenith Energy Ltd. has successfully made full coupon payments for its multi-currency Euro Medium Term Notes issued on the Vienna Stock Exchange. This move underscores the company’s financial stability and commitment to its investors, potentially enhancing its reputation in the energy sector and among stakeholders.

Business Operations and StrategyFinancial Disclosures
Zenith Energy Reports 2025 Financial Results and Outlines Growth Plans
Positive
Jul 22, 2025

Zenith Energy Ltd. has released its audited financial results for the fiscal year ending March 31, 2025, showing increased revenues from oil and natural gas, as well as higher sales of natural gas and electricity from its Italian assets. The company plans to expand its electricity generation in Italy by developing a solar energy portfolio, targeting a production output of 20 MWp by the end of 2025. Despite a setback in an arbitration decision, Zenith remains confident in its ability to deliver shareholder value through expected compensatory damages and its growing energy production portfolio, with a focus on renewables.

Legal ProceedingsBusiness Operations and Strategy
Zenith Energy to Challenge ICC-2 Arbitration Ruling
Negative
Jul 21, 2025

Zenith Energy Ltd. is preparing to initiate annulment proceedings before the Swiss Federal Supreme Court following an ICC-2 Arbitration decision that the company claims was marred by procedural irregularities. The arbitration process, which was criticized for its lack of proper control and reasoning, has prompted Zenith to challenge the ruling, potentially impacting its legal and operational strategies.

Legal ProceedingsBusiness Operations and Strategy
Zenith Energy Pursues Annulment After Arbitration Setback
Negative
Jul 16, 2025

Zenith Energy Ltd. announced that its subsidiary, Canadian North Africa Oil and Gas Limited (CNAOG), received a decision from the Arbitral Tribunal rejecting its claims in the ICC-2 Arbitration against the Republic of Tunisia concerning the Sidi El Kilani concession. The company plans to apply for annulment of the decision, citing procedural irregularities, and will pursue further legal action to seek compensation for lost revenues and interests. The outcome of this arbitration could significantly impact Zenith’s operations and financial standing, as well as its ongoing legal strategies, including a substantial claim in ICSID arbitration.

Private Placements and FinancingBusiness Operations and Strategy
Zenith Energy Fulfills 2026 Bond Coupon Payments
Positive
Jul 10, 2025

Zenith Energy Ltd. has announced the successful payment of coupon obligations for its 2026 multi-currency Euro Medium Term Notes listed on the Vienna Stock Exchange. This move underscores Zenith’s commitment to maintaining its financial obligations and could positively impact its reputation among investors and stakeholders, further solidifying its position in the international energy market.

Private Placements and FinancingFinancial Disclosures
Zenith Energy Fulfills Bond Coupon Payments, Reinforcing Financial Stability
Positive
Jul 4, 2025

Zenith Energy Ltd. has announced the successful payment of coupon obligations for its multi-currency Euro Medium Term Notes listed on the Vienna Stock Exchange. This financial move underscores Zenith’s commitment to maintaining its financial obligations and potentially strengthens its market position by demonstrating fiscal responsibility, which may positively impact stakeholders’ confidence.

Delistings and Listing ChangesPrivate Placements and Financing
Zenith Energy Announces Admission of Common Shares to London Stock Exchange
Neutral
Jun 6, 2025

Zenith Energy Ltd. announced the admission of 20,693,379 common shares to the Transition Category of the FCA Official List and trading on the Main Market of the London Stock Exchange, effective June 10, 2025. This move does not involve new equity issuance, as the shares are already part of the company’s outstanding share capital. The admission includes shares issued in connection with a UK financing initiative, potentially enhancing the company’s liquidity and market presence.

Delistings and Listing Changes
Zenith Energy Lists Additional Shares on London Stock Exchange
Neutral
Jun 6, 2025

Zenith Energy Ltd. has announced the admission of 20,693,379 common shares to the Transition Category of the FCA Official List and trading on the Main Market of the London Stock Exchange. This move, which includes shares issued in connection with recent UK financing, does not represent a new equity issuance but rather formalizes the shares’ trading status, potentially enhancing liquidity and visibility in the market.

Private Placements and FinancingFinancial Disclosures
Zenith Energy Fulfills 2026 Bond Coupon Payments
Positive
May 20, 2025

Zenith Energy Ltd. has announced the successful payment of coupon obligations for its 2026 multi-currency Euro Medium Term Notes listed on the Vienna Stock Exchange. This financial move underscores Zenith’s commitment to maintaining its financial obligations, potentially enhancing its credibility and stability in the energy sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 16, 2025