Zimtu Capital (ZC) AI Stock Analysis

• Market Cap: $3.17M
• Dividend Yield: N/A
• Average Volume (3M): 18.73K
• Price to Earnings (P/E): 0.4
• Beta (1Y): -1.45
• 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: 13,694
• 30 Day Avg. Volume: 18,731
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 6.24
• Enterprise Value/Ebitda: 0.43
• 1Y Price Target: $0.50
• Price Target Upside: 99.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: C$0.50 ▲(100.00% Upside)

Zimtu Capital's overall stock score reflects a balance of mixed financial performance and strong technical indicators. The stock appears undervalued based on its P/E ratio, but significant revenue decline and cash flow issues are risks. Technical analysis shows bullish momentum, though the overbought RSI suggests caution.

Zimtu Capital Business Overview & Revenue Model

Company Description

Zimtu Capital (ZC) is a publicly traded investment company based in Canada that focuses on the resource sector, particularly in the mining and exploration of natural resources. The company identifies and invests in various resource opportunities, including precious metals, base metals, and energy projects, often partnering with junior resource companies to support their growth and development. Zimtu Capital also provides advisory services and access to capital for these companies, enhancing their operational capabilities.

How the Company Makes Money

Zimtu Capital generates revenue primarily through its investment activities, which include capital gains from the sale of its equity positions in resource companies, as well as dividends and interest income from its investment portfolio. The company typically takes equity stakes in junior resource firms, allowing it to benefit from their potential growth and success. Additionally, Zimtu Capital offers consulting and advisory services to resource companies, charging fees for their expertise in areas such as financing and operational strategy. Strategic partnerships with these companies can also lead to revenue-sharing agreements, further enhancing the company's income. The overall success of Zimtu Capital's revenue model is closely tied to market conditions within the resource sector and the performance of its investment portfolio.

Zimtu Capital Financial Statement Overview

Summary

Zimtu Capital shows mixed financial performance. While it maintains profitability with a positive net profit margin and strong equity position, significant revenue decline and cash flow challenges are concerning. The low leverage is a positive aspect, but revenue growth and cash flow management need improvement.

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	1.24M	2.39M	1.89M	1.69M	1.94M	1.36M
Gross Profit	463.09K	1.28M	1.31M	-589.49K	764.67K	95.40K
EBITDA	6.67M	6.07M	-3.08M	-10.30M	132.83K	4.05M
Net Income	6.50M	5.90M	-3.66M	-10.47M	10.24M	3.70M
Balance Sheet
Total Assets	19.10M	17.29M	11.84M	13.46M	20.81M	10.58M
Cash, Cash Equivalents and Short-Term Investments	10.72M	9.16M	6.91M	10.10M	14.59M	8.98M
Total Debt	192.03K	259.07K	577.87K	328.53K	467.64K	152.21K
Total Liabilities	598.43K	546.47K	987.60K	1.73M	677.97K	922.36K
Stockholders Equity	18.50M	16.75M	10.85M	11.73M	20.14M	9.65M
Cash Flow
Free Cash Flow	365.11K	-258.46K	-2.17M	-764.74K	-559.79K	-397.56K
Operating Cash Flow	390.89K	-202.95K	-1.33M	-706.55K	-530.53K	-359.53K
Investing Cash Flow	-448.36K	562.99K	-1.86M	-62.19K	695.36K	648.95K
Financing Cash Flow	-159.42K	-196.92K	1.95M	1.80M	-130.24K	-106.48K

Zimtu Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.25 is below the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.24, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 3.33 is Positive, 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
ZC	59 Neutral	$3.17M	0.44	42.27%	―	693.06%	―
IDK	46 Neutral	C$6.14M	-0.46	―	―	-1245.23%	-222.20%
QCA	46 Neutral	C$4.94M	-1.59	―	―	79.10%	-120.38%
BLGV	35 Underperform	C$6.17M	-3.48	―	―	51.96%	39.46%
LITT	31 Underperform	C$4.49M	-9.29	―	―	―	88.76%
BLR	24 Underperform	C$882.52K	-4.00	―	―	―	99.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Zimtu Capital Corporate Events

Zimtu Capital Launches $1.5 Million Private Placement

Zimtu Capital Corp. announced a non-brokered private placement to raise up to $1.5 million by issuing 10 million units at $0.15 per unit. Each unit includes one common share and a warrant to purchase an additional share at $0.20 within 24 months. The proceeds will be used for general working capital, with the offering subject to regulatory approvals and a hold period of four months and one day.

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.