Zimtu Capital (ZC) AI Stock Analysis

• Market Cap: C$2.16M
• Dividend Yield: N/A
• Average Volume (3M): 12.06K
• Price to Earnings (P/E): 0.3
• Beta (1Y): -0.60
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 74
• Industry: Asset Management
• EPS (TTM): -0.04
• Shares Outstanding: 12,682,630
• 10 Day Avg. Volume: 7,244
• 30 Day Avg. Volume: 12,064
• PEG Ratio: <0.01
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.52
• 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

• Rating: 58 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Zimtu Capital's stock score is primarily influenced by strong profitability and a solid balance sheet, tempered by weak cash flow management. The low P/E ratio suggests potential undervaluation, but technical indicators show neutral to bearish trends. Corporate events such as the strategic marketing partnership offer positive prospects for investor engagement.

Zimtu Capital Business Overview & Revenue Model

Company Description

Zimtu Capital Corp. is a private equity and venture capital firm specializing in seed stage, early stage, acquisition, pre-IPO investments in private micro and small-cap resource companies. The firm invests in potash mineral properties, technology and emerging cannabis sectors. It prefers to invest in Western Canada. It also focuses on the exploration and development of tantalum and niobium deposits in Central British Columbia; and involves in the exploration and evaluation of gold deposits in South-Central Northwest territories. The projects are normally acquired on a 50-50% basis with geological and prospecting partners with proceeds from sales split the same. Zimtu Capital Corp. was founded on July 4, 2006 and is based in Vancouver, Canada with an additional office in Toronto, Canada.

How the Company Makes Money

Zimtu Capital makes money through its investments in early-stage resource companies, primarily in the mineral exploration and mining sectors. The company generates revenue by acquiring equity positions in these companies and benefiting from their growth and success. Key revenue streams include returns from the sale of these equity positions, dividends received from profitable investments, and fees for consulting and advisory services provided to the companies in which it invests. Additionally, Zimtu may engage in joint ventures or partnerships that offer further financial benefits and opportunities for profit. The company's earnings are significantly influenced by the performance of the resource sector and the success of the ventures it supports.

Zimtu Capital Financial Statement Overview

Summary

Zimtu Capital demonstrates strong profitability with a high net profit margin of 223.4% and a robust balance sheet, evidenced by a 96.4% equity ratio and low leverage. However, cash flow challenges, including negative free cash flow, necessitate improvement for sustained financial health.

Income Statement

Zimtu Capital's revenue has shown volatility with a significant recovery in TTM (Trailing-Twelve-Months) to $2.6M from a negative revenue in 2023. Gross Profit Margin for TTM is strong at 77.3%, and Net Profit Margin is exceptionally high at 223.4% due to substantial net income. However, the revenue growth rate is inconsistent, and the EBIT margin of 32.7% in TTM suggests room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet is robust with a high equity ratio of 96.4% in TTM, reflecting strong financial stability. The Debt-to-Equity ratio is low at 0.01, indicating minimal leverage risk. The Return on Equity (ROE) is impressive at 35.8% in TTM, showcasing effective use of equity to generate profits.

Cash Flow

Zimtu Capital has experienced challenges in cash flow management. The Free Cash Flow is negative, although improving from previous periods. Operating Cash Flow to Net Income ratio is negative in TTM, indicating that accounting profits are not translating into cash flow. Improvement in cash flow generation is necessary for financial sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.60M	2.39M	1.89M	1.69M	1.94M	1.36M
	Gross Profit
2.01M	1.28M	1.31M	-589.49K	764.67K	95.40K
	EBIT
850.07K	500.43K	185.33K	-1.99M	-11.99K	-642.81K
	EBITDA
5.92M	6.07M	-3.08M	-10.30M	132.83K	4.05M
	Net Income Common Stockholders
5.81M	5.90M	-3.66M	-10.47M	10.24M	3.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
176.36K	9.16M	6.91M	10.10M	14.59M	8.98M
	Total Assets
16.83M	17.29M	11.84M	13.46M	20.81M	10.58M
	Total Debt
226.05K	259.07K	577.87K	328.53K	467.64K	152.21K
	Net Debt
49.69K	48.21K	530.14K	-959.05K	214.12K	-66.73K
	Total Liabilities
601.60K	546.47K	987.60K	1.73M	677.97K	922.36K
	Stockholders Equity
16.23M	16.75M	10.85M	11.73M	20.14M	9.65M
Cash Flow		Free Cash Flow
-117.08K	-258.46K	-2.17M	-764.74K	-559.79K	-397.56K
	Operating Cash Flow
-81.89K	-202.95K	-1.33M	-706.55K	-530.53K	-359.53K
	Investing Cash Flow
404.68K	562.99K	-1.86M	-62.19K	695.36K	648.95K
	Financing Cash Flow
-165.07K	-196.92K	1.95M	1.80M	-130.24K	-106.48K

Zimtu Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.17 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.16, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 62.18 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 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 *	64 Neutral	$12.86B	9.79	7.84%	78.10%	12.05%	-7.99%
ZC	58 Neutral	C$2.16M	0.25	44.88%	―	―	―
IDK	46 Neutral	C$7.67M	―	-24.56%	―	-137.64%	-173.29%
QCA	46 Neutral	C$4.54M	―	-30.37%	―	-100.38%	95.31%
BLGV	35 Underperform	C$10.13M	―	-9482.10%	―	66.03%	53.03%
LITT	31 Underperform	C$2.99M	―	-10.74%	―	-317.97%	85.00%
BLR	24 Underperform	C$441.26K	―	80.58%	―	―	99.20%

Zimtu Capital Corporate Events

Zimtu Capital Announces Share Consolidation Effective May 9, 2025

Zimtu Capital Corp. announced the TSX Venture Exchange’s approval of its share consolidation, effective May 9, 2025, which will see the company’s shares consolidated on a 1-for-5 basis. This move will reduce the total number of outstanding shares from 63,413,303 to 12,682,630, impacting the exercise price and number of shares issuable upon the exercise of options and warrants. The consolidation aims to streamline the company’s share structure and potentially enhance its market positioning.

Zimtu Capital Partners with Star Copper for Strategic Marketing Initiative

Zimtu Capital Corp. has entered into an agreement with Star Copper Corp. to provide its ZimtuADVANTAGE program, a strategic marketing initiative aimed at enhancing visibility and engagement with high-value investors. This program, which includes services like research reports, content creation, and social media management, is expected to strengthen Star Copper’s presence in the capital markets, potentially impacting its investor relations and market positioning.

Zimtu Capital Proposes Share Consolidation to Boost Marketability

Zimtu Capital Corp. has announced a proposed consolidation of its common shares, reducing the number of outstanding shares from approximately 63.4 million to 12.7 million. This move is aimed at enhancing the company’s marketability as an investment and improving its ability to raise funds for executing its business plan. The consolidation is pending approval from the TSX Venture Exchange, and no fractional shares will be issued, with fractions rounded up to the nearest whole number.

Zimtu Capital Increases Stake in Sceptre Ventures

Zimtu Capital Corp. has acquired 2,408,200 units of Sceptre Ventures Inc. through a private placement, increasing its stake to 33.33% on a partially diluted basis. This acquisition, aimed at investment purposes, triggered the need for an early warning report due to surpassing a 2% threshold of Sceptre’s issued shares, highlighting Zimtu’s strategic positioning in the market.

Zimtu Capital Acquires Stake in Xander Resources

Zimtu Capital Corp. has acquired 1,315,790 units of Xander Resources Inc. through a private placement, marking its first ownership stake in the company. This acquisition represents 16.6% of Xander’s common shares on an undiluted basis and 28.5% on a partially diluted basis, potentially impacting Zimtu’s investment portfolio and market influence in the resource exploration sector.