Zentek Ltd.
Find Ratings ReportsZENTEK LTD's gross profit margin for the third quarter of its fiscal year 2023 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ZENTEK LTD is extremely liquid. Currently, the Quick Ratio is 3.96 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 13.15% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 0.01 | 0.02 |
EBITDA ($mil) | -2.8 | -3.24 |
EBIT ($mil) | -2.96 | -3.38 |
Net Income ($mil) | -2.69 | -3.24 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 5.35 | 13.9 |
Total Assets ($mil) | 24.83 | 28.96 |
Total Debt ($mil) | 1.28 | 1.41 |
Equity ($mil) | 22.47 | 25.88 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | -23350.0 | -21620.0 |
EBITDA Margin | -23350.0 | -21620.0 |
Operating Margin | -24700.0 | -22553.33 |
Sales Turnover | 0.0 | 0.01 |
Return on Assets | -48.24 | -57.72 |
Return on Equity | -53.3 | -64.62 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 6.05 | 7.42 |
Debt/Capital | 0.05 | 0.05 |
Interest Expense | 0.03 | 0.03 |
Interest Coverage | -105.86 | -125.3 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 100.86 | 99.53 |
Div / share | 0.0 | 0.0 |
EPS | -0.03 | -0.03 |
Book value / share | 0.22 | 0.26 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 22741.0 | 20600.0 |
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 5.88 indicates a premium versus the S&P 500 average of 4.68 and a premium versus the subsector average of 4.96. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, ZENTEK LTD seems to be trading at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ZTEK NM | Peers 49.88 | ZTEK NM | Peers 33.16 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. ZTEK's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ZTEK's P/CF is negative making the measure meaningless. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ZTEK NA | Peers 24.07 | ZTEK NA | Peers 0.91 | |||||||||||||||||||||
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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ZTEK 5.88 | Peers 4.96 | ZTEK 38.89 | Peers 126.83 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ZTEK is trading at a premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ZTEK is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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ZTEK 4404.22 | Peers 6.41 | ZTEK -84.41 | Peers 8.91 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ZTEK is trading at a significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ZTEK significantly trails its peers on the basis of sales growth. |
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