Zedcor Energy Inc (ZDC) AI Stock Analysis

• Market Cap: C$421.72M
• Dividend Yield: N/A
• Average Volume (3M): 234.18K
• Price to Earnings (P/E): 131.9
• Beta (1Y): 0.66
• Revenue Growth: 55.96%
• EPS Growth: 53.54%
• Country: CA
• Employees: 130
• Sector: Energy
• Sector Strength: 53
• Industry: Security & Protection Services
• EPS (TTM): 0.01
• Shares Outstanding: 105,167,950
• 10 Day Avg. Volume: 174,693
• 30 Day Avg. Volume: 234,180
• PEG Ratio: -0.03
• Price to Book (P/B): 4.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.50
• 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: C$4.67
• Price Target Upside: 16.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 59 Neutral
• Price Target: C$4.50 ▲(12.50%Upside)

The overall score reflects a solid financial performance with strong revenue growth and operational efficiency but is tempered by declining net margins and negative free cash flow. Technical analysis indicates caution due to overbought signals. The valuation is high, suggesting potential overvaluation risks. Positive corporate events related to strategic expansion and employee alignment bolster the company's future outlook.

Zedcor Energy Inc Business Overview & Revenue Model

Company Description

Zedcor Inc. provides technology-based security and surveillance services in Western and Central Canada. The company engages in the provision of rental, service, and remote monitoring of its proprietary MobileyeZ security towers; live and verified remote monitoring of fixed site locations; and security personnel. It also offers fixed site security camera installation and monitoring services; and security guard services. The company serves customers in the pipeline construction, civil and municipal construction, warehouses, auto storage yards, and solar power generation facilities. As of December 31, 2021, it operated a fleet of 265 MobileyeZ security towers, including 190 Solar Hybrid MobileyeZ; 54 Electric MobileyeZ; and 21 Diesel MobileyeZ. The company was formerly known as Zedcor Energy Inc. and changed its name to Zedcor Inc. in September 2020. Zedcor Inc. was founded in 2005 and is headquartered in Calgary, Canada.

How the Company Makes Money

Zedcor Energy Inc generates revenue primarily through the rental and leasing of energy-related equipment to companies in the oil and gas industry. This includes the provision of surface equipment, portable structures, and other essential tools required for energy exploration and production. The company's revenue model is based on long-term and short-term rental agreements, service contracts, and maintenance fees. Significant partnerships with major energy producers and ongoing demand for energy infrastructure and services contribute to Zedcor's earnings, ensuring a stable and recurring income stream.

Zedcor Energy Inc Financial Statement Overview

Summary

Zedcor Energy Inc exhibits strong revenue growth and operational efficiency, evidenced by solid gross margins and a growing asset base. However, declining net margins and negative free cash flow present challenges. The balance sheet reflects moderate leverage and improved equity standing, while cash flow management requires attention to ensure sustainable growth and financial resilience.

Income Statement

Zedcor Energy Inc has demonstrated a strong revenue growth trajectory over recent years, with a significant increase in total revenue from $24.88 million in 2023 to $32.99 million in 2024, marking a growth rate of 32.54%. The gross profit margin in 2024 was 58.63%, indicating effective cost management and strong competitive positioning. However, net profit margin declined from 10.65% in 2023 to 4.94% in 2024, suggesting rising expenses or other profit-impacting challenges. The EBIT and EBITDA margins stand at 10.14% and 32.26% respectively, reflecting moderate operational profitability.

Balance Sheet

The company's financial leverage is moderately high with a debt-to-equity ratio of 0.89 as of 2024, indicating a balanced capital structure but potential vulnerability to interest rate increases. The return on equity (ROE) for 2024 is 5.09%, suggesting moderate profitability relative to shareholder investments. The equity ratio improved to 47.41% in 2024, showing increased financial stability and a robust asset base supported by equity.

Cash Flow

Zedcor Energy Inc has faced challenges in generating positive free cash flow, with a negative free cash flow of -$10.37 million in 2024. Despite this, the operating cash flow to net income ratio of 6.77 in 2024 demonstrates strong cash generation from operations relative to net income. However, the free cash flow to net income ratio is negative due to substantial capital expenditures, highlighting potential liquidity risks if operational cash flows falter.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.99M	24.89M	22.10M	13.55M	13.76M
Gross Profit	19.34M	12.39M	10.77M	6.17M	4.43M
EBITDA	10.69M	9.14M	8.41M	3.86M	3.53M
Net Income	1.63M	2.65M	6.00M	-3.90M	-4.68M
Balance Sheet
Total Assets	67.45M	42.97M	32.58M	19.80M	32.49M
Cash, Cash Equivalents and Short-Term Investments	5.76M	1.47M	571.00K	108.00K	761.00K
Total Debt	28.33M	27.61M	20.68M	17.02M	26.88M
Total Liabilities	35.46M	30.86M	24.09M	19.40M	28.47M
Stockholders Equity	31.99M	12.12M	8.49M	398.00K	4.02M
Cash Flow
Free Cash Flow	-10.37M	-3.58M	-2.80M	-1.22M	939.00K
Operating Cash Flow	11.02M	9.89M	6.19M	4.54M	2.72M
Investing Cash Flow	-20.53M	-13.45M	-8.61M	6.58M	841.00K
Financing Cash Flow	13.80M	4.47M	2.88M	-11.77M	-2.97M

Zedcor Energy Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.00
• 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:ZDC, the sentiment is Positive. The current price of 4 is above the 20-day moving average (MA) of 3.76, above the 50-day MA of 3.51, and above the 200-day MA of 3.17, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 63.52 is Neutral, neither overbought nor oversold. The STOCH value of 67.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ZDC.

Zedcor Energy Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOT	75 Outperform	C$396.13M	6.39	11.38%	3.61%	11.02%	102.23%
PHX	73 Outperform	C$371.86M	6.56	25.15%	9.72%	4.69%	-34.62%
KEI	68 Neutral	C$319.04M	11.20	11.09%	―	24.05%	44.00%
Sector *	67 Neutral	$14.94B	9.78	6.38%	5.19%	4.13%	-66.99%
ZDC	59 Neutral	C$421.72M	131.91	7.90%	―	55.96%	53.54%
ESI	55 Neutral	C$408.19M	14.37	-1.17%	―	-2.85%	-144.20%
EMO	42 Neutral	C$372.41M	―	-47.70%	―	―	51.26%

Zedcor Energy Inc Corporate Events

Zedcor Inc. Grants 2.9 Million RSUs to Support Expansion

Zedcor Inc. announced the granting of 2,935,000 Restricted Share Units (RSUs) to its employees, directors, and officers as part of its fixed 10% RSU/DSU plan. This strategic move is likely aimed at aligning the interests of its team with the company’s growth and expansion goals, particularly as it continues to enhance its presence in North American markets. The RSUs will vest over three years, potentially impacting employee retention and motivation positively.

The most recent analyst rating on (TSE:ZDC) stock is a Buy with a C$4.25 price target. To see the full list of analyst forecasts on Zedcor Energy Inc stock, see the TSE:ZDC Stock Forecast page.

Zedcor Energy Inc. Achieves Record Q1 2025 Results with Strong U.S. Expansion

Zedcor Energy Inc. reported record financial results for the first quarter of 2025, with revenue reaching $11.5 million and an Adjusted EBITDA of $4.1 million. The company experienced significant growth in its U.S. operations, with 29% of its revenue coming from this region, and maintained high utilization rates for its security towers. Zedcor’s strategic expansion into the U.S. and increased demand in Canada have bolstered its market position, while its manufacturing capabilities in Houston provide insulation from tariffs. The company is on track to meet its manufacturing targets and continues to invest in expanding its customer base across North America.

The most recent analyst rating on (TSE:ZDC) stock is a Buy with a C$4.25 price target. To see the full list of analyst forecasts on Zedcor Energy Inc stock, see the TSE:ZDC Stock Forecast page.

Zedcor Inc. to Release Q1 2025 Financial Results and Host Conference Call

Zedcor Inc. has announced the release of its first quarter financial results for the period ending March 31, 2025, scheduled for May 21, 2025, after market close. The company will host a conference call on May 22, 2025, to discuss these results, led by CEO Todd Ziniuk and CFO Amin Ladha. This announcement is part of Zedcor’s ongoing efforts to engage with stakeholders and provide transparency about its financial performance, which could impact its market positioning and investor relations.

The most recent analyst rating on (TSE:ZDC) stock is a Buy with a C$4.25 price target. To see the full list of analyst forecasts on Zedcor Energy Inc stock, see the TSE:ZDC Stock Forecast page.

Zedcor Inc. Achieves Record Q4 2024 Financial Results Amid U.S. Expansion

Zedcor Inc. reported record financial results for the fourth quarter of 2024, with revenues reaching $10.3 million and adjusted EBITDA at $4.0 million, marking significant year-over-year growth. The company has successfully expanded its operations in the U.S., with over 20% of its revenue coming from this market, and maintained high utilization rates for its security towers. Zedcor’s strategic focus on customer diversification and operational efficiency has bolstered its market position, and the company is poised for further growth in 2025, supported by increased production capacity and a strong sales pipeline.