Zentek (ZEN) AI Stock Analysis

• Market Cap: C$98.72M
• Dividend Yield: N/A
• Average Volume (3M): 66.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: 2225.73%
• EPS Growth: 25.94%
• Country: CA
• Employees: 24
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.02
• Shares Outstanding: 107,306,500
• 10 Day Avg. Volume: 86,681
• 30 Day Avg. Volume: 66,239
• PEG Ratio: 0.88
• Price to Book (P/B): 11.24
• Price to Sales (P/S): 190.02
• P/FCF Ratio: -26.38
• 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: 47 Neutral
• Price Target: C$0.91 ▼(-11.18% Downside)

The score is held back primarily by weak financial performance (declining revenue, persistent losses, and negative operating cash flow). Technicals are supportive due to strong momentum above key moving averages, but overbought signals temper that strength. Valuation is also constrained by negative earnings and no dividend support.

Positive Factors

Proprietary graphene technology

Owning proprietary graphene technologies across multiple end markets is a durable competitive asset. It creates opportunities for long-term licensing, product premiuming, and industry partnerships, enabling scalable revenue streams if commercialization and regulatory approvals progress.

Diversified commercial pathways

Multiple revenue channels—direct product sales, IP licensing, collaborative contracts and grant funding—reduce single-market dependency and provide recurring and non-dilutive cash sources. This diversification supports sustained R&D and go-to-market execution over months to years.

Low balance-sheet leverage

A relatively low debt load provides financial flexibility to fund commercialization and absorb operational setbacks. Lower leverage reduces refinancing risk and preserves the ability to pursue strategic partnerships or capex without immediate pressure to raise dilutive capital.

Negative Factors

Declining revenue and weak margins

Sustained revenue contraction and deeply negative EBIT/net margins signal the business has yet to reach commercial scale or price-cost competitiveness. Without reversing top-line trends and restoring margins, long-term viability and capacity to invest in growth are materially constrained.

Negative operating and free cash flow

Persistent negative operating cash flow and deteriorating free cash flow indicate ongoing cash burn from operations. This creates reliance on external financing or grants, increases dilution risk, and limits the company's ability to scale manufacturing, commercialize products, or sustain R&D.

Negative return on equity and ongoing losses

A negative ROE reflects inability to convert invested capital into profitable returns, suggesting R&D and commercialization investments have not yet translated into sustainable earnings. This weak capital efficiency can deter long-term investors and complicate future fundraising.

Zentek Business Overview & Revenue Model

Company Description

Zentek Ltd. (ZEN) is a Canadian technology company specializing in advanced materials and innovative solutions for various industries, including healthcare, energy, and environmental sectors. The company is focused on developing and commercializing its proprietary graphene-based technologies, which are designed to enhance the performance and efficiency of products in fields such as air filtration, antimicrobial coatings, and energy storage.

How the Company Makes Money

Zentek generates revenue primarily through the commercialization of its graphene-based products and technologies. The company has established key partnerships with industry players and research institutions to develop and market its innovative solutions. Revenue streams include sales of its air filtration systems, licensing agreements for its intellectual property, and collaborative research contracts. Additionally, Zentek benefits from government grants and funding aimed at supporting innovative technological advancements, which further contribute to its earnings.

Zentek Financial Statement Overview

Summary

Weak fundamentals: declining TTM revenue, deeply negative profitability (net and EBIT margins), and negative operating cash flow with deteriorating free cash flow. Balance sheet leverage is relatively low, but negative ROE underscores ongoing losses.

Income Statement

Zentek's income statement reveals significant challenges. The company has experienced negative revenue growth in the TTM, indicating a decline in sales. Profitability metrics such as net profit margin and EBIT margin are deeply negative, reflecting substantial losses. Despite a slight improvement in gross profit margin, the overall financial health remains weak due to persistent negative earnings.

Balance Sheet

The balance sheet shows moderate leverage with a low debt-to-equity ratio, which is a positive sign of financial stability. However, the return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio is relatively stable, suggesting a decent proportion of equity financing, but the negative ROE highlights ongoing profitability issues.

Cash Flow

Zentek's cash flow statement highlights significant cash flow challenges. The operating cash flow to net income ratio is negative, indicating cash outflows from operations. Free cash flow growth is negative in the TTM, suggesting deteriorating cash generation. Although the free cash flow to net income ratio is slightly above 1, it is primarily due to negative net income, not improved cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	915.32K	872.50K	29.82K	72.86K	339.67K	2.35K
Gross Profit	452.53K	192.49K	-385.06K	-780.48K	-275.04K	-124.44K
EBITDA	-7.64M	-9.35M	-11.08M	-13.75M	-11.27M	-3.73M
Net Income	-8.19M	-10.04M	-11.70M	-14.41M	-38.69M	-3.87M
Balance Sheet
Total Assets	16.87M	18.40M	22.59M	33.29M	37.98M	30.25M
Cash, Cash Equivalents and Short-Term Investments	1.33M	121.48K	3.52M	10.36M	26.68M	3.09M
Total Debt	1.89M	680.47K	1.24M	1.61M	2.23M	404.32K
Total Liabilities	5.18M	3.65M	2.41M	2.90M	3.44M	2.79M
Stockholders Equity	11.69M	14.75M	20.17M	30.38M	34.55M	27.46M
Cash Flow
Free Cash Flow	-5.80M	-6.28M	-8.37M	-15.23M	-11.97M	-2.05M
Operating Cash Flow	-5.42M	-6.28M	-8.05M	-12.96M	-7.99M	-1.79M
Investing Cash Flow	2.40M	358.65K	1.88M	-2.31M	-7.25M	-1.23M
Financing Cash Flow	1.42M	2.52M	-665.47K	-1.05M	38.82M	5.31M

Zentek Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ZEN, the sentiment is Negative. The current price of 1.02 is below the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.06, and below the 200-day MA of 1.36, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.53 is Neutral, neither overbought nor oversold. The STOCH value of 2.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ZEN.

Zentek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QIPT	61 Neutral	C$215.89M	-14.11	-10.51%	―	2.48%	-53.76%
MDP	58 Neutral	C$91.75M	131.02	0.87%	―	2.14%	-83.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BUX	50 Neutral	C$52.55M	-30.86	―	―	-21.89%	26.36%
ZEN	47 Neutral	C$98.72M	-11.72	-52.95%	―	2225.73%	25.94%
ARCH	43 Neutral	C$66.26M	-41.77	―	―	―	10.49%
SONA	40 Underperform	C$45.20M	-14.08	-2846.90%	―	―	10.97%

Zentek Corporate Events

Zentek Unveils Strategic Reset, Concentrates on Three Core Platforms

Zentek Ltd. has launched a strategic reset that narrows its focus to three core platforms—Albany Graphite, ZenGUARD and Triera—each governed by defined milestones, capital allocation criteria and a 24‑month roadmap, while pausing or winding down non-core initiatives to concentrate resources on projects with clearer paths to value creation. The company is cutting costs through workforce and facility optimization, tightening corporate spending and linking future capital raises to specific milestones, while redistributing the responsibilities of the departing Chief Science Officer across its existing technical leadership; management is also committing to improved transparency via clearer segment-level financial disclosure and milestone tracking, moves aimed at protecting and rebuilding shareholder value and sharpening execution for investors and other stakeholders.

The most recent analyst rating on (TSE:ZEN) stock is a Sell with a C$0.99 price target. To see the full list of analyst forecasts on Zentek stock, see the TSE:ZEN Stock Forecast page.

Zentek’s Albany Graphite Wins Nuclear‑Grade Validation, Targeting High‑Value Specialty Markets

Zentek’s Albany Graphite subsidiary has received final independent test results confirming that its ultra‑high‑purity Albany graphite, when used in near‑net‑shaped graphite bricks, meets key performance benchmarks for nuclear‑grade graphite blocks, including strength, density, electrical characteristics and extremely low impurity levels. This validation, building on prior confirmation of five‑nines purity and nuclear‑relevant boron thresholds, positions Albany’s purified natural graphite as a credible substitute for synthetic graphite in a range of high‑return, specialty applications, from advanced nuclear reactors to premium battery and high‑temperature components, potentially reducing reliance on foreign synthetic supply and enhancing Canada’s role in critical, security‑sensitive graphite markets as global demand for ultra‑high‑purity material grows.

The most recent analyst rating on (TSE:ZEN) stock is a Hold with a C$0.97 price target. To see the full list of analyst forecasts on Zentek stock, see the TSE:ZEN Stock Forecast page.

Zentek’s Albany Graphite Achieves Nuclear-Grade Performance, Targeting High-Value Specialty Markets

Zentek announced that independent testing has confirmed its Albany graphite achieves nuclear-grade performance in finished graphite bricks, meeting stringent benchmarks for strength, density, electrical performance and ultra-low impurity levels. With demonstrated five-nines purity and nuclear-spec suitability, management believes Albany graphite can substitute for synthetic graphite in high-value niches, positioning the project as a potential premier Canadian supplier of purified, ultra-high-purity natural graphite into nuclear, defense, aerospace, and premium battery markets, reducing reliance on foreign sources and aligning with growing demand and critical-mineral security objectives.

The most recent analyst rating on (TSE:ZEN) stock is a Hold with a C$0.97 price target. To see the full list of analyst forecasts on Zentek stock, see the TSE:ZEN Stock Forecast page.

Zentek’s Albany Graphite Achieves Breakthrough Lithium-Ion Battery Performance

Zentek Ltd.’s subsidiary, Albany Graphite Corp., has achieved near-theoretical anode performance using its high-purity Albany graphite material in independent testing for lithium-ion batteries. The coin cell tests demonstrated exceptional energy storage capability and strong cycling stability, making the material a competitive option for high-performance battery applications. The efficient use of spheroidization byproducts and industry-standard testing further add to its economic value, sustainability appeal, and scalability, solidifying its potential in the North American battery supply chain. The breakthrough enhances Zentek’s position as a credible supplier of sustainable, high-performance graphite solutions, bolstering confidence among investors, partners, and battery manufacturers.

The most recent analyst rating on (TSE:ZEN) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Zentek stock, see the TSE:ZEN Stock Forecast page.

Zentek Appoints Mohammed Jiwan as CEO to Drive Growth

Zentek Ltd. has appointed Mohammed Jiwan as the new Chief Executive Officer, effective December 1, 2025. Jiwan brings over 20 years of experience in operational and capital markets leadership, particularly in technology, healthcare, and life sciences. His appointment is seen as a strategic move to guide Zentek into its next phase of growth, focusing on unlocking the full value of its technologies and assets. The company also announced the granting of stock options and restricted share units to certain officers, directors, and consultants, indicating a commitment to aligning leadership incentives with shareholder value creation.

The most recent analyst rating on (TSE:ZEN) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Zentek stock, see the TSE:ZEN Stock Forecast page.

Zentek Faces CRA Reassessment on 2019 Flow-Through Financings

Zentek Ltd. has received a notice of reassessment from the Canada Revenue Agency (CRA) concerning its 2019 financial year, related to its flow-through financings. The CRA has reclassified approximately $199,000 of Canadian exploration expenses, resulting in a tax assessment of $22,481.89. Zentek is required to indemnify subscribers affected by the reassessment, with a maximum liability of $427,000. This reassessment may impact Zentek’s financial obligations and its relationship with investors involved in the flow-through financings.

The most recent analyst rating on (TSE:ZEN) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Zentek stock, see the TSE:ZEN Stock Forecast page.

Zentek Unveils Innovative Fire-Retardant Product with Exclusive US Licensing

Zentek Ltd. has developed a new Graphite Gel-Based Fire-Retardant product designed to protect homes from wildfires. The product, which combines rapid gelation and intumescent components, has been licensed exclusively to Altek Advanced Materials Inc. for commercialization in the US under the name GraphGel™. The coating has been tested to achieve a Class A fire rating and can be rapidly applied to structures, offering significant protection. This development addresses the growing need for effective fire management solutions amid increasing wildfire incidents.

The most recent analyst rating on (TSE:ZEN) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Zentek stock, see the TSE:ZEN Stock Forecast page.