Zenith Energy (ZEN) AI Stock Analysis

• Market Cap: £51.29M
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 40.5
• Beta (1Y): -0.99
• 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: 649,182,300
• 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: 55 Neutral
• Price Target: 8.00 p ▲(123.46% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held back primarily by weak cash flow health and a high P/E valuation, despite strong revenue growth and an improving leverage profile. Technicals are supportive with strong momentum, but overbought readings reduce confidence in the near-term setup.

Positive Factors

Revenue Growth

Zenith's ~60.6% top-line growth signals durable demand for its storage and terminal services and improving facility utilization. Sustained revenue expansion helps absorb fixed costs, supports reinvestment in capacity, and strengthens negotiating leverage with customers over the medium term.

Operating Margin Improvement

Positive EBIT/EBITDA and improving operating margins indicate the business is realizing operational efficiencies and scaling benefits across terminals. Durable margin gains increase resilience to volume swings and improve the company's ability to fund maintenance capex and service debt over time.

Leverage Improvement

A reduced debt-to-equity of 0.74 reflects an improving leverage profile and stronger balance sheet stability. Lower leverage decreases refinancing risk, enhances financial flexibility for strategic investments, and supports longer-term operational resilience in a cyclical industry.

Negative Factors

Weak Cash Generation

Despite a 44.82% FCF increase, ongoing negative operating and free cash flows point to persistent cash deficits. Weak cash generation constrains internal funding for capex and working capital, raises dependency on external financing, and limits the firm's ability to sustainably execute growth plans.

Low Gross Margin

A gross margin of just 3.73% shows the core storage and handling business earns very thin direct profits. Such narrow margins leave little buffer against rising energy, labor, or input costs and make long-term profitability and margin sustainability vulnerable to adverse cost or pricing shifts.

Low ROE & Profit Volatility

ROE of 1.66% combined with historically volatile profits indicates limited returns on shareholder capital and weak earnings predictability. This undermines long-term reinvestment efficacy, may increase cost of capital, and complicates strategic planning and investor confidence over multiple quarters.

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 primarily makes money by charging customers fees for the use of its infrastructure and logistics services. Key revenue streams typically include: (1) storage and terminaling fees for holding bulk liquids in tanks at its facilities; (2) throughput/handling fees for receiving, transferring, blending (where offered), and loading/unloading products via road, rail, pipeline, or marine interfaces at terminals; and (3) ancillary service fees tied to operating and maintaining terminal infrastructure (e.g., scheduling, product movements, and other site-specific services included in customer contracts). Earnings are driven by contracted capacity/volume commitments and customer utilization of terminal services, with revenue influenced by factors such as facility occupancy, throughput volumes, pricing terms in service agreements, and the mix of products handled. Specific details on material partnerships, customer concentration, contract structures (e.g., minimum volume commitments), or segment-level revenue breakdown are null.

Zenith Energy Financial Statement Overview

Summary

Strong revenue growth (+60.58%) and improving operating margins are positives, but financial quality is mixed: low gross margin (3.73%), historically volatile profitability, and weak cash generation with negative operating and free cash flows. Leverage has improved (debt-to-equity 0.74), but ROE remains low (1.66%).

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Sep 2020
Income Statement
Total Revenue	2.15M	1.79M	13.16M	8.24M	596.00K
Gross Profit	80.00K	-3.23M	2.66M	3.78M	-1.84M
EBITDA	9.41M	-33.42M	-4.94M	-2.00M	-1.60M
Net Income	1.09M	-42.37M	-12.83M	64.44M	3.52M
Balance Sheet
Total Assets	164.72M	140.02M	262.91M	259.30M	119.44M
Cash, Cash Equivalents and Short-Term Investments	3.20M	207.00K	1.44M	1.15M	1.63M
Total Debt	48.50M	41.68M	33.94M	18.34M	12.74M
Total Liabilities	99.09M	90.04M	171.26M	156.21M	95.63M
Stockholders Equity	65.63M	49.98M	91.65M	103.09M	23.80M
Cash Flow
Free Cash Flow	-11.38M	-4.24M	-16.27M	-13.19M	-9.87M
Operating Cash Flow	-10.97M	-4.19M	-15.84M	-13.13M	-9.81M
Investing Cash Flow	1.24M	-593.00K	-430.00K	-2.17M	-202.00K
Financing Cash Flow	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: Positive
• MACD: Negative
• RSI: Negative
• 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 below the 20-day moving average (MA) of 4.20, below the 50-day MA of 3.80, and below the 200-day MA of 5.43, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 90.16 is Negative, neither overbought nor oversold. The STOCH value of 78.47 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%
ZEN	55 Neutral	£51.29M	40.54	-2.87%	―	65.32%	97.00%
EOG	53 Neutral	£18.75M	―	―	―	―	―
SOU	53 Neutral	£17.29M	-0.66	-45.38%	―	―	―
MATD	50 Neutral	£23.24M	-3.81	-54.57%	―	―	―
CHAR	47 Neutral	£38.21M	-1.36	-31.73%	―	-2.69%	-5.00%
PRD	47 Neutral	£26.48M	-5.90	-12.26%	―	―	―

Zenith Energy Corporate Events

Zenith Energy Pays Coupons on 2029 Multi-Currency Bonds

Zenith Energy has confirmed it has fully paid recent coupon obligations on its multi-currency 2029 Euro Medium Term Notes listed on the Vienna MTF. The timely coupon payments underscore the company’s ability to meet its debt commitments, supporting its credibility with bondholders and reinforcing its financial discipline as it advances its international energy portfolio.

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 retires Euro Medium Term Note at maturity

Zenith Energy Ltd. has repaid in full, at maturity, its Euro Medium Term Note listed on the Vienna MTF and the Frankfurt Stock Exchange, marking the successful discharge of this specific bond obligation. The repayment underscores the company’s ability to meet its debt commitments, which may be viewed positively by bondholders and equity investors watching its financial discipline and access to capital markets.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £3.50 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Meets Coupon Payments on 2027 Multi-Currency Bonds

Zenith Energy has paid in full the latest coupon instalments on its 2027 multi-currency Euro Medium Term Notes listed on the Vienna MTF of the Vienna Stock Exchange. The timely servicing of these bond coupons underscores the company’s ability to meet its debt obligations, supporting its financial credibility in capital markets and providing reassurance to bondholders and other stakeholders about its ongoing cash flow strength and balance sheet discipline.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £3.50 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Retires Euro Medium Term Note in Full

Zenith Energy Ltd. has fully repaid its Euro Medium Term Note listed on the Vienna MTF and the Frankfurt Stock Exchange, settling principal of EUR 50,000 and a final coupon of EUR 3,656.25 for a total payment of EUR 53,656.25. The repayment removes this specific debt instrument from Zenith’s capital structure, modestly strengthening its balance sheet and signalling continued focus on managing obligations as it pursues growth from its portfolio of producing and low-risk exploration assets in North Africa, the US and Europe.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £3.50 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Adds 10 MWp Agrivoltaic Project as Italian Solar Pipeline Reaches 120.5 MWp

Zenith Energy has acquired a 10 MWp agrivoltaic solar development project in Italy’s Piedmont region through its subsidiary WESOLAR, paying up to €768,215 for the land subject to permits and targeting Ready-to-Build status within 12–15 months. The project deepens the company’s presence in one of Italy’s most industrialised and power-hungry areas, bringing its Italian solar portfolio to 120.5 MWp across Piedmont, Puglia and Lazio and enhancing the potential value of a pipeline that was independently valued at €27.5m when it stood at 110.5 MWp; Zenith plans to keep advancing projects to Ready-to-Build, selectively sell parts of the pipeline and construct chosen assets, while pursuing further acquisitions as it builds scale in the country’s rapidly growing photovoltaic market.

The most recent analyst rating on (GB:ZEN) stock is a Hold with a £3.50 price target. To see the full list of analyst forecasts on Zenith Energy stock, see the GB:ZEN Stock Forecast page.

Zenith Energy Bolsters ICSID Legal Team for Tunisia Arbitration with Appointment of Andrea Pinna

Zenith Energy has strengthened the legal team representing its UK subsidiary claimants in arbitration proceedings against the Republic of Tunisia at the International Centre for Settlement of Investment Disputes by appointing Andrea Pinna, a partner at international disputes boutique Pinna Goldberg. Pinna, an experienced arbitration counsel with a strong track record in investor-state and energy-sector disputes and in matters involving sovereign immunity, will work alongside the company’s existing high-profile legal advisers as Zenith prepares for final hearings scheduled for April 2026 in its claim under the UK-Tunisia Bilateral Investment Treaty, which seeks redress and compensation for what the company describes as arbitrary and unlawful actions that led to the sequestration and expropriatory termination of its Tunisian operations and assets.

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.