Zentek Ltd.

ZTEK
About the company

Zentek Ltd., together with its subsidiaries, engages in the research and development of graphene and related nanomaterials in Canada. It develops graphene-based coatings under the ZenGUARD brand; graphene-enhanced intumescent gel under the ZenFire brand; carbon-based copolymeric icephobic coating under the ZenICE brand, and graphene-enhanced anti-corrosion coating under the ZenArmor brand.

Country: CanadaPrice: $0.49Market Cap: $62.3M

Investment snapshot

12%positive consensus
Scored 1d ago

Positive

2

BUY / PASS

Neutral / negative

1 / 13

NEUTRAL / FAIL

Median fair value

—

No comparable estimates

Models with upside

0 / 17

Positive margin of safety

Strongest signal

8 of 12 pass — Buffett, Dreman, Marks +1 more object

Key risk

No clean pass — all 13 investors flag at least one valuation criterion

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

MetricGraham

Defensive Value

Buffett

Quality Compounder

Lynch

GARP

Greenblatt

Magic Formula

Piotroski

F-Score

Dreman

Contrarian Value

Munger

Quality Focus

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Marks

Risk-Aware Value

Ackman

Activist Value

Templeton

Global Bargain Hunter

Sleep

Scale Economies Shared

Asness

Systematic Factors

Neff

Low-P/E Total Return

Schloss

Asset-Value Discipline

O'Shaughnessy

Systematic Factor Composite

VerdictFAILFAILFAILFAIL · Rank #2575 (Top 83.1%)PASSFAILFAILFAILFAILFAILFAILPASSFAILFAILFAILFAILNEUTRAL
Score
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Intrinsic Value (annual)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Margin of SafetyN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Financial Basis

Annual history · FY 2024

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024 · Market data at 2026-10-01

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2024

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2024

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024 · Qualitative assessment

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024 · Qualitative assessment

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024 · Market data at 2026-10-01

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024 · Price history 2025-01-01–2026-10-01

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024 · Qualitative assessment

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024 · Price history 2025-01-01–2026-10-01

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Annual history · FY 2024 · Price history 2025-01-01–2026-10-01

Latest source filing: 2025-06-27

Score computed: 2026-11-14

Where It Passes

  • Debt & Leverage67% pass✓ 11✗ 4▾

    8 of 12 pass — Buffett, Dreman, Marks +1 more object

    LT Debt vs Net Current AssetsLT Debt $0.0M vs NCA $0.6M
    ✓GrahamLT Debt <= Net Current Assets
    Debt/Equity & Interest CoverageD/E: 0.02, IC: -105.2x
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Total Debt / Equity0.02
    ✓Lynch< 0.33
    Cash - Long-term Debt$0.1M
    ✓LynchPositive preferred
    LT Debt / Total Assets Change1.15% -> 0.00%
    ✓PiotroskiDecreased YoY
    Current Assets / Current Liabilities1.25
    ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)
    Total Debt / Shareholders' Equity0.02
    ✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x
    Debt Levels0.02
    ✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3
    Interest Coverage & Debt/EBITDAIC=-105.2x, D/EBITDA=N/A
    ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity0.02
    ✓Ackman<= 1.0
    Negative debt-to-equity (higher means less debt)-0.0226; #775/4210 (top 18.4%)
    ✓AsnessTop 30% of eligible cross-section

Where It Falls Short

  • Valuation0% pass✓ 1✗ 27▾

    No clean pass — all 13 investors flag at least one valuation criterion

    Price / 3-yr avg EPS
    ✗Graham<= 15x
    Price-to-Book Ratio5.0x
    ✗Graham<= 1.5x
    P/E x P/B
    ✗Graham<= 22.5
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    EBIT / Enterprise Value-10.7%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=-10.7%, ROC=-150.7%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / EPS
    ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
    Price / (CFO / Shares)N/A (negative CFPS)
    ✗Dreman< 8x
    Price / Book Value per Share5.0x
    ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
    Valuation ReasonablenessOE Yield=-12.8%
    ✗MungerP/E < 25 or Owner Earnings Yield > 5%
    P/E or FCF YieldFCF Yield=-7.0%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    P/B or P/E vs. Historical AverageP/B=5.0x
    ✗MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Price / FCF per ShareN/A (negative FCF)
    ✗Ackman<= 25
    Price vs. Trailing Low114% of trailing low ($0.43)
    ✓Templeton<= 120% of trailing low (certified split-adjusted live window)
    Net income / market capitalization-11.26%; #4232/6340 (top 66.8%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Positive book equity / market capitalization+0.1655; #4383/6449 (top 68.0%)
    ✗AsnessTop 30% of eligible cross-section
    Price / Diluted EPS
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / Tangible Book Value per Share4.98x
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change-61.9%
    ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Revenue / market capitalization+0.0098; #4860/5247 (top 92.6%)
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization-7.05%; #3099/4519 (top 68.6%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date+14.42%; #1623/6202 (top 26.2%)
    ✗OshaughnessyTop 10% of eligible cross-section
  • Cash Flow0% pass✓ 1✗ 11▾

    No clean pass — all 10 investors flag at least one cash flow criterion

    Free Cash Flow Proxy$-6.6M
    ✗BuffettPositive and growing
    FCF Positive and Growing$-4.4M
    ✗LynchPositive and growing
    Operating Cash Flow$-4.4M
    ✗PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=-34.15%, ROA=-54.57%
    ✓PiotroskiCFO/Assets > ROA
    Price / (CFO / Shares)N/A (negative CFPS)
    ✗Dreman< 8x
    P/E or FCF YieldFCF Yield=-7.0%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    FCF Positive0/5 years FCF positive
    ✗MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap-8.6%
    ✗Ackman>= 4%
    Price / FCF per ShareN/A (negative FCF)
    ✗Ackman<= 25
    Positive Operating Cash Flow frequency0/5 years positive
    ✗SleepPositive OCF in >= 70% of available years
    Operating Cash Flow - Capital Expenditures$-4.4M
    ✗Neff> $0 (app proxy for a strong fundamental case)
    (Operating cash flow - capex) / market capitalization-7.05%; #3099/4519 (top 68.6%)
    ✗OshaughnessyTop 10% of eligible cross-section
  • Growth0% pass✓ 3✗ 10▾

    No clean pass — all 8 investors flag at least one growth criterion

    EPS Growth (3-yr avg, 10-yr window)-146.5%
    ✗Graham>= 33% growth
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthInv: -41.0% vs Rev: 2668.2%
    ✓LynchInventory growth < Revenue growth
    EPS Growth Direction$0.04 (2020) -> $-0.07 (2024)
    ✗DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    Positive Net Income Frequency0/5 years positive
    ✗MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth-59.1%
    ✗Ackman>= 5%
    Positive EPS Growth Frequency3/4 years with positive EPS growth
    ✓AckmanPositive EPS growth in >= 3 of last 5 years
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Revenue growth vs. gross and operating margin trendrevenue up, operating margin -20550.1% -> -1100.9%
    ✓SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR
    ✗SleepCAGR > 7%
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
  • Efficiency0% pass✓ 1✗ 10▾

    No clean pass — all 8 investors flag at least one efficiency criterion

    Current Ratio1.25
    ✗Graham>= 2.0
    ROIC (3-5 yr avg)-48.9%
    ✗Buffett> 10%
    ROIC - WACC-58.9%
    ✗BuffettPositive (WACC = 10%)
    EBIT / (NWC + Net Fixed Assets)-150.7%
    ✗Greenblatt> 25%
    Current Ratio Change YoY3.44 -> 1.25
    ✗PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY0.00x -> 0.05x
    ✓PiotroskiImproved YoY
    Current Assets / Current Liabilities1.25
    ✗Dreman> 1.5
    Return on Invested Capital-50.3%
    ✗Munger> 15%
    ROIC (high and growing)FY2022: ROIC=-38.2%; FY2023: ROIC=-47.4%; FY2024: ROIC=-50.3%
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROICN/A (non-positive net income)
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)0/5 years above 12% (latest -50.3%)
    ✗SleepROIC > 12% in a majority of years
  • Profitability6% pass✓ 5✗ 30▾

    15 of 16 flag ZTEK's profitability — Graham, Buffett, Lynch +12 more

    Positive EPS (10 years)2/6 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)-146.5%
    ✗Graham>= 33% growth
    Net Income Positive (10+ years)0/6 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)-52.8%
    ✗Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)-1100.9% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy$-6.6M
    ✗BuffettPositive and growing
    Earnings Variance (10-yr CoV)7.22
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    ROE-68.1%
    ✗Lynch> 15%
    EBIT / Enterprise Value-10.7%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=-10.7%, ROC=-150.7%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Net Income / Total Assets-54.57%
    ✗PiotroskiROA > 0
    ROA Change YoY-51.82% -> -54.57% (delta: -2.75%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=-34.15%, ROA=-54.57%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY-869.3% -> 26.1%
    ✓PiotroskiImproved YoY
    Pre-Tax Income / Revenue
    ✗Dreman>= 8%
    Net Income / Shareholders' Equity-68.1%
    ✗Dreman> 12%
    Margin of SafetyP/B=5.0x
    ✗PabraiP/B < 1.5 or P/E < 15
    Return on Equity-57.8% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency0/5 years positive
    ✗MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue-1100.9%
    ✗Ackman>= 15%
    Net Income / Shareholders Equity-68.1%
    ✗Ackman>= 15%
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend-20550.1% (2022) -> -1100.9% (2024)
    ✓TempletonNon-negative operating-margin trend over 3 years
    Revenue growth vs. gross and operating margin trendrevenue up, operating margin -20550.1% -> -1100.9%
    ✓SleepRevenue rising; gross margin flat or falling; operating margin holding
    Net income / market capitalization-11.26%; #4232/6340 (top 66.8%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Gross profit / total assets+1.24%; #3320/3702 (top 89.7%)
    ✗AsnessTop 30% of eligible cross-section
    Net income / positive book equity-68.07%; #4386/5226 (top 83.9%)
    ✗AsnessTop 30% of eligible cross-section
    Negative 5-year standard deviation of ROA-0.1905; #4183/5884 (top 71.1%)
    ✗AsnessTop 30% of eligible cross-section
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
    Positive Diluted-EPS Years2/5 years positive
    ✗Schloss>= 70% positive over 5-10 observed years (app rule)
  • Verdicts13% pass✓ 2✗ 14▾

    Split decision: 13 FAIL · 2 PASS · 1 NEUTRAL

    Overall verdict
    ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (3/7)✗GreenblattRank #2575✓PiotroskiPASS (F-Score 4)✗DremanFAIL (1/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (0/5)✗AckmanFAIL (3/9)✓TempletonPASS (4/8)✗SleepFAIL (1/6)✗AsnessFAIL (Rank #2239/2370 (Top 94.5%))✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)

Business & financials

Financial snapshot: annual FY 2024. Current investor scores may use newer quarterly data.

Company Profile

Industry: Chemicals
SIC Sector: Chemicals & Pharmaceuticals
Size: Micro Cap($62.3M)
Revenue: $609748.36+2668.2% YoY
Net Income: $7.0M+18.9% YoY

Financial Snapshot

Operating Margin-1100.9%
Return on Equity-68.1%
Debt / Equity0.02
Current Ratio1.25
EPS (Diluted)$-0.07
Shares Retired−3.5% / −4.9% 2y

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$8.0B

Shareholder Return

Fiscal 2024

Issued 3.5% of shares last year, 4.9% issued over two.

Buybacks
—
Dividends
—

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

MetricFY 2024
Sources
  • 40-F · 2025-06-27
FY 2023
Sources
  • 40-F · 2024-06-27
FY 2022
Sources
  • 40-F · 2023-06-30
FY 2021
Sources
  • 40-F/A · 2022-07-18
FY 2020
Sources
  • 40-F/A · 2022-07-18
Market Cap$62.3Mcurrent$138.1Mest.$144.3Mest.$278.9Mest.$195.8Mest.
Revenue$609.7K↑2668%$22.0K↓59%$53.9K↓81%$278.1K↑14806%$1.9K
Operating Income-$6.7M↑27%-$9.2M↑17%-$11.1M↓10%-$10.1M↓194%-$3.4M
Net Income-$7.0M↑19%-$8.6M↑19%-$10.7M↑58%-$25.4M↓728%-$3.1M
EPS (Diluted)$-0.07↑21%$-0.09↑14%$-0.10↓131%$0.34↑749%$0.04
Gross Margin26.1%↑103%-869.3%———
Operating Margin-1100.9%↑97%-41593.2%↓102%-20550.1%↓468%-3618.5%↑98%-183172.8%
ROE-68.1%↓17%-58.0%↓22%-47.4%↑38%-76.3%↓441%-14.1%
Total Debt$233.2K↓35%$358.2K↓21%$454.2K↑101%$225.8K↓30%$320.4K
Shareholders' Equity$10.3M↓31%$14.9M↓34%$22.5M↓32%$33.3M↑53%$21.8M
Current Ratio1.25↓64%3.44↓54%7.42↓46%13.87↑926%1.35
Debt / Equity0.02↓6%0.02↑19%0.02↑198%0.01↓54%0.01
Operating Cash Flow-$4.4M↑26%-$5.9M↑38%-$9.6M↓50%-$6.4M↓350%-$1.4M
Free Cash Flow-$4.4M↑29%-$6.2M↑45%-$11.3M↓17%-$9.6M↓491%-$1.6M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Chemicals

ZTEK vs Peers — Financial Grading

Revenue$609748.36Bottom 25%
Net Income$7.0MBottom 25%
ROE-68.1%Bottom 25%
D/E0.02Top 25%
Op. Margin-1100.9%Bottom 25%
Curr. Ratio1.25Bottom 25%
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
EIDP, Inc.CTA-PB$46.8B$54.21——————2/95/92/70/3F-Score 14/11
CF Industries Holdings, Inc.CF$18.3B$125.09$7.1B$1.8B37.2%0.6632.5%3.373/94/95/73/3F-Score 88/11
RPM INTERNATIONAL INC/DE/RPM$13.2B$103.73$7.9B$661.4M20.0%0.77—1.683/92/93/71/3F-Score 67/11
Element Solutions IncESI$8.0B$33.08$2.6B$190.8M7.1%0.6113.4%3.682/92/91/71/3F-Score 56/11
NEWMARKET CORPNEU$6.5B$709.19$2.7B$418.7M23.5%0.5020.0%2.534/96/92/71/3F-Score 55/11
HEXCEL CORP /DE/HXL$6.0B$79.46$1.9B$109.4M8.7%0.799.1%2.262/92/93/70/3F-Score 64/11
ICL Group Ltd.ICL$5.8B$4.52$7.2B$226.0M3.8%0.468.1%1.335/94/92/70/3F-Score 45/11
BALCHEM CORPBCPC$5.5B$173.14$1.0B$154.8M12.3%0.1320.2%2.072/94/92/71/3F-Score 95/11