Zimtu Capital (ZC) AI Stock Analysis

• Market Cap: $2.79M
• Dividend Yield: N/A
• Average Volume (3M): 18.76K
• Price to Earnings (P/E): 0.4
• Beta (1Y): -0.77
• Revenue Growth: 693.06%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.18
• Shares Outstanding: 12,682,630
• 10 Day Avg. Volume: 38,367
• 30 Day Avg. Volume: 18,761
• PEG Ratio: N/A
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.33
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Zimtu Capital's strong profitability and robust balance sheet are offset by challenges in cash flow management and potential overvaluation risks suggested by technical indicators. The extremely low P/E ratio suggests undervaluation but also hints at possible underlying concerns. The lack of earnings call and corporate events data limits further insights into company prospects.

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 investment activities, primarily by acquiring equity stakes in early-stage companies in the mineral resource sector. The company generates revenue through capital appreciation of its investments, dividends, and the sale of its holdings when they achieve desired returns. Additionally, Zimtu Capital may earn income from management fees for services provided to its portfolio companies. The company's earnings are influenced by the performance of its investments, market conditions, and its ability to identify and capitalize on lucrative opportunities within the resource industry.

Zimtu Capital Financial Statement Overview

Summary

Zimtu Capital shows strong profitability metrics with a high net profit margin and a robust balance sheet featuring a high equity ratio and low leverage. However, inconsistent revenue growth and negative cash flow management are significant concerns, requiring improvement for long-term success.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39M	1.89M	1.69M	1.94M	1.36M
Gross Profit	1.28M	1.31M	-589.49K	764.67K	95.40K
EBITDA	6.07M	-3.08M	-10.30M	132.83K	4.05M
Net Income	5.90M	-3.66M	-10.47M	10.24M	3.70M
Balance Sheet
Total Assets	17.29M	11.84M	13.46M	20.81M	10.58M
Cash, Cash Equivalents and Short-Term Investments	9.16M	6.91M	10.10M	14.59M	8.98M
Total Debt	259.07K	577.87K	328.53K	467.64K	152.21K
Total Liabilities	546.47K	987.60K	1.73M	677.97K	922.36K
Stockholders Equity	16.75M	10.85M	11.73M	20.14M	9.65M
Cash Flow
Free Cash Flow	-258.46K	-2.17M	-764.74K	-559.79K	-397.56K
Operating Cash Flow	-202.95K	-1.33M	-706.55K	-530.53K	-359.53K
Investing Cash Flow	562.99K	-1.86M	-62.19K	695.36K	648.95K
Financing Cash Flow	-196.92K	1.95M	1.80M	-130.24K	-106.48K

Zimtu Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.22 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.15, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 82.97 is Negative, neither overbought nor oversold. The STOCH value of 90.00 is Negative, 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 *	74 Outperform	15.46B	18.29	16.30%	219.36%	8.25%	25.93%
ZC	56 Neutral	$2.79M	0.39	42.27%	―	693.06%	―
IDK	46 Neutral	C$5.75M	―	-24.56%	―	-137.64%	-173.29%
QCA	46 Neutral	C$4.54M	―	-30.37%	―	-100.38%	95.31%
BLGV	35 Underperform	C$26.88M	―	-9482.10%	―	66.03%	53.03%
LITT	31 Underperform	C$1.73M	―	-10.74%	―	-317.97%	85.00%
BLR	24 Underperform	C$882.52K	―	80.58%	―	―	99.20%

Zimtu Capital Corporate Events

Zimtu Capital Corp. Grants Stock Options and Restricted Share Units

Zimtu Capital Corp. has announced the granting of 1,450,000 stock options and 745,000 restricted share units to its directors, officers, employees, and consultants. The stock options are exercisable at $0.14 per share over five years, with a vesting schedule of 25% immediately and 25% every three months. The restricted share units will vest in twelve months, allowing recipients to receive one common share per unit. These grants are pending approval from the TSX Venture Exchange and align with the company’s Equity Incentive Plan.

Zimtu Capital Sells Copperline Property and Updates Board

Zimtu Capital Corp. has announced the sale of its Copperline Property to Star Copper Corp., involving a comprehensive agreement that includes cash, shares, and a royalty arrangement. This transaction, which requires exchange approval, highlights Zimtu’s strategic focus on capitalizing its investments in the mineral exploration sector. Additionally, the company announced the resignation of Chris Grove from its board, marking a significant change in its leadership structure.

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.