Zimtu Capital (ZC) AI Stock Analysis

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Zimtu Capital

(TSXV:ZC)

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Rating:60Neutral

Price Target:CAD 0.42▲(8.36% Upside)

Action:downgraded

Date:10/29/26

The score is anchored by solid balance-sheet strength and strong reported profitability at times, but is pulled down by weak and inconsistent cash flow (negative TTM OCF/FCF) and volatile revenue/earnings. Technically, the stock trends bearish (below major moving averages with negative MACD), while valuation looks inexpensive on a very low P/E.

Positive Factors

Conservative Balance SheetVery low leverage and a substantial equity cushion provide financial resilience for an investment company operating across resource sectors. This structure can reduce balance-sheet pressure during weaker periods and preserve flexibility to support portfolio companies or pursue new opportunities.

Negative Factors

Negative Cash GenerationNegative TTM operating and free cash flow weaken the quality of reported earnings and reduce internally generated funding. Persistent inconsistency could increase reliance on asset realizations, financing activity, or working-capital movements to support operations and investment commitments.

Zimtu Capital (ZC) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 8.51M
Dividend Yield: ―
Average Volume (3M): 16.79K
Price to Earnings (P/E): 0.8
Beta (1Y): -0.74
Revenue Growth: -51.74%
EPS Growth: -59.01%
Country: Canada
Employees: 3
Sector: Financial
Sector Strength: 68
Industry: Asset Management

Zimtu Capital Business Overview & Revenue Model

Company Description

Zimtu Capital Corp. is a private equity and venture capital firm specializing in seed stage, late venture, mid venture, early-stage investments in private micro and small-cap resource companies. It prefers to make buyout and growth investments. The f...

Zimtu Capital Financial Statement Overview

Summary

Strong balance sheet strength (very low leverage and a solid equity cushion) supports resilience, and profitability is strong in the latest period. However, results are uneven: revenue is highly volatile (TTM down sharply after a strong 2025) and cash generation is weak with TTM operating cash flow and free cash flow negative, reducing overall financial quality.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	4.46M	23.70M	2.39M	1.89M	2.61M	3.50M
Gross Profit	3.97M	23.43M	1.28M	1.31M	330.54K	2.32M
EBITDA	5.32M	20.18M	6.07M	-3.08M	-10.37M	10.44M
Net Income	4.19M	19.28M	5.90M	-3.66M	-10.47M	10.24M
Balance Sheet
Total Assets	36.13M	39.63M	17.29M	11.84M	13.46M	20.81M
Cash, Cash Equivalents and Short-Term Investments	25.85M	25.39M	9.16M	6.91M	10.10M	17.80M
Total Debt	628.12K	119.15K	259.07K	577.87K	328.53K	467.64K
Total Liabilities	1.61M	1.27M	546.47K	987.60K	1.73M	677.97K
Stockholders Equity	34.53M	38.35M	16.75M	10.85M	11.73M	20.14M
Cash Flow
Free Cash Flow	-456.05K	804.38K	-258.46K	-2.17M	-764.74K	-559.79K
Operating Cash Flow	-438.02K	834.43K	-202.95K	-1.33M	-706.55K	-530.53K
Investing Cash Flow	-1.40M	-911.17K	562.99K	-1.86M	-62.19K	695.36K
Financing Cash Flow	1.93M	1.93M	-196.92K	1.95M	1.80M	-130.24K

Zimtu Capital Technical Analysis

Technical Analysis SentimentNegative

Last Price0.38

Price Trends

50DMA0.42Negative

100DMA0.43Negative

200DMA0.50Negative

Market Momentum

MACD-0.01Positive

RSI38.34Neutral

STOCH41.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ZC, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.42, and below the 200-day MA of 0.50, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.34 is Neutral, neither overbought nor oversold. The STOCH value of 41.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ZC.

Zimtu Capital Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

TSE:ZC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TSE:QCA	62Neutral	CAD 4.63M	2.00	22.71%	―	-280.28%	―
TSE:ZC	60Neutral	CAD 6.56M	0.79	10.96%	―	-51.74%	-59.01%
TSE:LITT	47Neutral	CAD 3.33M	-0.69	-123.79%	―	-100.00%	-50.31%
TSE:MONT	42Neutral	CAD 433.65K	0.05	103.05%	―	―	―
TSE:IDK	41Neutral	CAD 10.37M	-0.79	-53.97%	―	39.12%	48.22%
TSE:BLGV	38Underperform	CAD 1.65M	-0.17	-1106.91%	―	-829.35%	-243.98%

* Financial Sector Average

Performance Comparison

TSE:ZC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:ZC	Zimtu Capital Corp	0.38	-0.15	-27.74%
TSE:LITT	Roadman Investments Corp.	0.06	-0.08	-57.14%
TSE:BLGV	Belgravia Capital International Inc	0.12	-0.33	-73.33%
TSE:IDK	ThreeD Capital	0.11	0.04	46.67%
TSE:QCA	Quinsam Capital	0.05	-0.00	-9.09%
TSE:MONT	TIMIA Capital	0.01	0.00	0.00%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Zimtu Capital AI Stock Analysis