Zentek (ZEN) AI Stock Analysis

• Market Cap: $120.42M
• Dividend Yield: N/A
• Average Volume (3M): 53.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 2826.26%
• EPS Growth: 16.22%
• Country: CA
• Employees: 24
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.02
• Shares Outstanding: 104,710,460
• 10 Day Avg. Volume: 80,502
• 30 Day Avg. Volume: 53,283
• PEG Ratio: -5.29
• Price to Book (P/B): 8.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.33
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: C$1.50 ▲(30.43%Upside)

Zentek's overall score is primarily influenced by its challenging financial position and weak technical indicators. However, this is partially offset by positive corporate developments that suggest potential for future growth. The company's ability to transition from R&D to commercialization and its strategic partnerships provide some optimism despite current financial and valuation concerns.

Zentek Business Overview & Revenue Model

Company Description

Zentek Ltd. engages in the research and development of graphene and related nanomaterials in Canada. It owns 100% interest in the Albany Graphite project located in Northern Ontario, Canada. The company develops graphene-based antimicrobial coating under the ZenGUARD brand, surgical masks, HVAC filters, personal protective equipment, rapid detection point of care diagnostics tests, and pharmaceutical products based on graphene-based compound. In addition, it develops synthesize graphene, graphene oxide, and graphene quantum dots for applications of graphene. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is headquartered in Thunder Bay, Canada.

How the Company Makes Money

Zentek makes money through the commercialization of its proprietary nanotechnology products, primarily the ZenGUARD™ antimicrobial coating. Revenue is generated by selling this coating to manufacturers of personal protective equipment, such as face masks, and other industries requiring antimicrobial surface protection. Additionally, Zentek engages in licensing agreements, where it grants other companies the rights to use its technology in exchange for royalty payments. Key partnerships with manufacturers and distributors also contribute to Zentek's revenue streams by expanding the reach of its products globally.

Zentek Financial Statement Overview

Summary

Zentek faces significant financial challenges with persistent losses and negative cash flows. While there is some revenue growth and manageable debt, the company struggles with profitability and operational inefficiencies, which are critical concerns for investors.

Income Statement

Zentek has shown low revenue figures with a slight upward trend over the years, but it is still operating with significant net losses. Gross profit margins are negative, indicating costs exceed revenues. Although there is a small revenue growth, the net profit margin remains deeply negative, reflecting persistent operational challenges.

Balance Sheet

The company's equity ratio is relatively healthy, and it has maintained a low debt-to-equity ratio, suggesting manageable leverage. However, the return on equity is negative due to ongoing losses, which is a concern for potential investors looking for profitability.

Cash Flow

Zentek's cash flow situation is challenging with negative operating and free cash flows. However, the company has shown some ability to secure financing, which has helped bolster liquidity. The operating cash flow to net income ratio highlights inefficiencies in converting income into cash.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	872.50K	29.82K	72.86K	339.67K	2.35K
Gross Profit	192.49K	-385.06K	-780.48K	-275.04K	-124.44K
EBITDA	-9.35M	-11.08M	-13.75M	-11.27M	-3.73M
Net Income	-10.04M	-11.70M	-14.41M	-38.69M	-3.87M
Balance Sheet
Total Assets	18.40M	22.59M	33.29M	37.98M	30.25M
Cash, Cash Equivalents and Short-Term Investments	121.48K	3.52M	10.36M	26.68M	3.09M
Total Debt	680.47K	1.24M	1.61M	2.23M	404.32K
Total Liabilities	3.65M	2.41M	2.90M	3.44M	2.79M
Stockholders Equity	14.75M	20.17M	30.38M	34.55M	27.46M
Cash Flow
Free Cash Flow	-6.28M	-8.37M	-15.23M	-11.97M	-2.05M
Operating Cash Flow	-6.28M	-8.05M	-12.96M	-7.99M	-1.79M
Investing Cash Flow	358.65K	1.88M	-2.31M	-7.25M	-1.23M
Financing Cash Flow	2.52M	-665.47K	-1.05M	38.82M	5.31M

Zentek Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 1.15 is below the 20-day moving average (MA) of 1.49, below the 50-day MA of 1.84, and below the 200-day MA of 1.55, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 19.04 is Positive, neither overbought nor oversold. The STOCH value of 20.57 is Neutral, 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	66 Neutral	C$125.55M	―	-8.34%	―	0.69%	-95.27%
MDNA	53 Neutral	C$57.71M	―	-97.22%	―	―	-67.03%
ZEN	52 Neutral	$120.42M	―	-57.57%	―	2826.26%	16.22%
Sector *	52 Neutral	$7.36B	-0.07	-63.77%	2.81%	16.35%	0.03%
ARCH	26 Underperform	C$114.36M	―	90.17%	―	―	-78.59%
HITI	―	$199.50M	―	-6.82%	―	―	―
EPRX	45 Neutral	C$262.17M	―	-108.05%	―	―	―

Zentek Corporate Events

Zentek Announces CEO Transition to Drive Commercialization

Zentek Ltd. announced a management transition as the board of directors decided not to extend the consulting contract of CEO Greg Fenton beyond March 31, 2026. The company is actively searching for a successor who will lead Zentek’s shift from research and development to commercialization. The current executive team will manage operations in the interim. This transition is seen as a strategic move to enhance Zentek’s market positioning and drive growth in its commercialization efforts.

Zentek Seeks New Regulatory Pathway for ZenGUARD™ Air Filters

Zentek Ltd. has received a letter from Health Canada regarding the regulatory classification of its ZenGUARD™ Enhanced Air Filters. Previously assessed by the Health Canada Pest Management Regulatory Agency, Zentek withdrew its submission to pursue commercialization as a Class I medical device, similar to its surgical masks. This strategic move aims to streamline the regulatory pathway and enhance market access for its innovative air filtration technology.

Zentek’s ZenGUARD™ Filters Achieve Breakthrough in Viral Filtration

Zentek has announced successful test results for its ZenGUARD™ Enhanced Air Filters, which have demonstrated a significant improvement in viral filtration efficiency compared to standard filters. These results align with ASHRAE Standard 241, which is crucial for controlling infectious aerosols in buildings, offering a practical solution for improving indoor air quality without increasing energy consumption or requiring additional equipment.

Zentek Partners with RSK to Expand Global Reach of ZenGUARD™ Air Filters

Zentek Ltd. has entered into an agency agreement with RSK Environment Ltd., a global environmental consulting firm, to expand the international reach of its ZenGUARD™ Enhanced Air Filters. This partnership will allow RSK to market and promote the air filters in over 20 countries, including the GCC region, with Zentek retaining manufacturing responsibilities. The collaboration aims to accelerate the adoption of the filters in markets prioritizing energy efficiency and indoor air quality, aligning with regional sustainability goals.

Zentek Completes Sale of Corporate Office Property

Zentek Ltd. has completed the sale of its property at 24 Corporate Court, Guelph, which houses its corporate office and laboratory space, for $2.5 million. The company will lease back the property until January 31, 2026, ensuring uninterrupted operations during the transition period. Zentek does not expect any disruption to its operations or staff and is planning for relocation beyond the leaseback period.

Zentek Secures Key Order for ZenGUARD™ Filters from Dexterra Group

Zentek Ltd. has received a purchase order from Dexterra Group Inc. for its ZenGUARD™ Enhanced Air Filters to be used at the Forensic Services and Coroner’s Complex in Toronto. This order signifies a growing adoption of Zentek’s innovative air filtration technology in Canada, aligning with the company’s vision of enhancing indoor air quality and reducing emissions through nanotechnology. The collaboration with Dexterra, a leader in facilities management, is expected to further promote the use of Zentek’s products across Canada, potentially impacting the company’s market presence and stakeholder interests positively.

Zentek Advances Avian Influenza Countermeasure Project with Canadian Government

Zentek has completed the first phase of its $1.1 million contract with the Government of Canada to develop an avian influenza countermeasure using its multivalent aptamer technology. The project, which aims to enhance Canada’s response to the global H5N1 outbreak, has moved to the testing phase after successful in vitro experiments. The collaboration with McMaster University has resulted in a lead candidate that meets the performance metrics set by the Canadian government, demonstrating efficacy comparable to monoclonal antibodies. This development positions Zentek as a key player in the field of innovative medical countermeasures, with potential implications for stakeholders in public health and defense sectors.