Zimtu Capital (ZC) AI Stock Analysis

• Market Cap: C$6.34M
• Dividend Yield: N/A
• Average Volume (3M): 30.08K
• Price to Earnings (P/E): 0.4
• Beta (1Y): -1.22
• Revenue Growth: 486.23%
• EPS Growth: 478.94%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.81
• Shares Outstanding: 12,682,630
• 10 Day Avg. Volume: 64,360
• 30 Day Avg. Volume: 30,084
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 5.31
• P/FCF Ratio: -49.07
• 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: 67 Neutral
• Price Target: C$0.55 ▲(8.63% Upside)

Zimtu Capital's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and profitability. The technical analysis indicates potential short-term weakness, but longer-term support remains. The valuation is attractive due to a very low P/E ratio, although the lack of a dividend yield is a consideration for some investors.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust expansion and effective market penetration, which can enhance long-term shareholder value.

Balance Sheet Health

Minimal leverage reduces financial risk and increases flexibility, supporting sustainable growth and resilience against market fluctuations.

Cash Flow Generation

Improved cash generation capabilities enhance the company's ability to reinvest in growth opportunities and weather economic downturns.

Negative Factors

Margin Sustainability

Relatively low profit margins may limit profitability, posing challenges to maintaining competitive pricing and absorbing cost increases.

Cash Flow Volatility

Past cash flow volatility suggests potential risks in maintaining consistent cash generation, which could affect long-term financial planning.

Industry Concentration

Heavy reliance on the mining sector exposes the company to commodity price fluctuations and sector-specific risks, impacting revenue stability.

Zimtu Capital Business Overview & Revenue Model

Company Description

Zimtu Capital (ZC) is a Canadian investment company that specializes in the exploration and development of resource projects, primarily in the mining sector. The company focuses on acquiring and managing a portfolio of resource companies, particularly those involved in precious metals, base metals, and other natural resources. Zimtu Capital aims to create shareholder value by leveraging its expertise in identifying promising investment opportunities and fostering growth in its portfolio companies.

How the Company Makes Money

Zimtu Capital generates revenue primarily through equity investments in resource-focused companies. The company earns money by acquiring shares in these companies at an early stage and benefiting from capital appreciation as the companies grow and develop their projects. Additionally, Zimtu may receive dividends from its investments, as well as fees from advisory services provided to its portfolio companies. Collaborations and strategic partnerships with other firms in the resource sector can also enhance Zimtu's revenue streams, as they may lead to joint ventures or co-investment opportunities, further diversifying its income sources.

Zimtu Capital Financial Statement Overview

Summary

Zimtu Capital's financial performance is mixed. The company faces a significant revenue decline of 52.32%, which is concerning. However, it maintains a positive net profit margin of 5.24% and a strong equity position with a low debt-to-equity ratio of 0.01. Cash flow management is weak, with a significant decline in free cash flow growth at -411.84%.

Income Statement

Zimtu Capital's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a significant revenue decline of 52.32%, which is concerning. However, the company has managed to maintain a positive net profit margin of 5.24% and an impressive EBIT margin of 5.27%, suggesting operational efficiency. The gross profit margin has decreased compared to previous periods, indicating potential cost management issues.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial stability. The return on equity is robust at 40.20%, showcasing effective utilization of equity to generate profits. The equity ratio is healthy, suggesting a solid asset base supported by equity.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -411.84%. The operating cash flow to net income ratio is below 1, indicating potential issues in converting income into cash. The free cash flow to net income ratio is relatively stable at 0.93, but overall cash flow management appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.71M	2.39M	1.89M	2.61M	3.50M	2.48M
Gross Profit	10.92M	1.28M	1.31M	330.54K	2.32M	1.21M
EBITDA	15.62M	6.07M	-3.08M	-10.37M	10.44M	3.85M
Net Income	15.55M	5.90M	-3.66M	-10.47M	10.24M	3.70M
Balance Sheet
Total Assets	28.76M	17.29M	11.84M	13.46M	20.81M	10.58M
Cash, Cash Equivalents and Short-Term Investments	264.65K	9.16M	6.91M	10.10M	17.80M	8.98M
Total Debt	156.56K	259.07K	577.87K	328.53K	467.64K	152.21K
Total Liabilities	825.06K	546.47K	987.60K	1.73M	677.97K	922.36K
Stockholders Equity	27.94M	16.75M	10.85M	11.73M	20.14M	9.65M
Cash Flow
Free Cash Flow	746.75K	-258.46K	-2.17M	-764.74K	-559.79K	-397.56K
Operating Cash Flow	772.53K	-202.95K	-1.33M	-706.55K	-530.53K	-359.53K
Investing Cash Flow	-389.64K	562.99K	-1.86M	-62.19K	695.36K	648.95K
Financing Cash Flow	-164.12K	-196.92K	1.95M	1.80M	-130.24K	-106.48K

Zimtu Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ZC, the sentiment is Positive. The current price of 0.51 is above the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.52, and above the 200-day MA of 0.31, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ZC.

Zimtu Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ZC	67 Neutral	C$6.34M	0.43	75.06%	―	486.23%	478.94%
QCA	48 Neutral	C$4.68M	-1.08	-37.19%	―	26.42%	-1217.14%
LITT	47 Neutral	C$9.33M	-8.21	-23.79%	―	―	66.12%
IDK	45 Neutral	C$6.60M	-0.23	-55.73%	―	53.55%	-289.42%
BLGV	42 Neutral	C$4.82M	-0.83	-226.11%	―	19.82%	-51.61%
MONT	41 Neutral	C$867.31K	-0.07	―	―	―	―

Zimtu Capital Corporate Events

Zimtu Capital Completes Warrant Exercise Incentive Program

Zimtu Capital Corp. has successfully completed its warrant exercise incentive program, issuing a total of 4,359,687 incentive warrants to eligible holders, generating gross proceeds of $2,090,802.65. The funds will be used for general working capital purposes, and the program included participation from company insiders, constituting a related party transaction under Canadian securities laws.

The most recent analyst rating on (TSE:ZC) stock is a Hold with a C$0.61 price target. To see the full list of analyst forecasts on Zimtu Capital stock, see the TSE:ZC Stock Forecast page.

Zimtu Capital Launches Warrant Exercise Incentive Program

Zimtu Capital Corp. has announced a warrant exercise incentive program aimed at encouraging the early exercise of outstanding common share purchase warrants. The program offers an additional incentive warrant for each warrant exercised within a specified 30-day period, allowing holders to acquire more shares at a set price. This initiative is expected to enhance liquidity and potentially strengthen the company’s market position, subject to regulatory approvals.

The most recent analyst rating on (TSE:ZC) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Zimtu Capital stock, see the TSE:ZC Stock Forecast page.