Zedcor Energy Inc (ZDC) AI Stock Analysis

• Market Cap: C$391.61M
• Dividend Yield: N/A
• Average Volume (3M): 139.90K
• Price to Earnings (P/E): 124.7
• Beta (1Y): 0.50
• Revenue Growth: 55.96%
• EPS Growth: 53.54%
• Country: CA
• Employees: 130
• Sector: Energy
• Sector Strength: 43
• Industry: Security & Protection Services
• EPS (TTM): 0.01
• Shares Outstanding: 103,876,290
• 10 Day Avg. Volume: 187,193
• 30 Day Avg. Volume: 139,903
• PEG Ratio: -28.81
• Price to Book (P/B): 8.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -32.09
• 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: C$4.50
• Price Target Upside: 19.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: C$4.00 ▲(6.10%Upside)

Zedcor Energy Inc's strong corporate events and technical indicators are the primary drivers of its positive score. Financial performance shows potential but is hampered by declining net margins and negative cash flow. Valuation remains a concern due to the high P/E ratio. Overall, the stock presents a compelling growth story with some caution needed around valuation metrics.

Zedcor Energy Inc Business Overview & Revenue Model

Company Description

Zedcor Energy Inc (ZDC) is a Canadian-based company operating in the energy sector. The company specializes in providing comprehensive energy services, including rental services, for the oil and gas industry. Zedcor Energy Inc offers a range of equipment and solutions designed to enhance operational efficiency and safety in energy production and exploration activities.

How the Company Makes Money

Zedcor Energy Inc generates revenue primarily through the rental and leasing of energy-related equipment to companies in the oil and gas industry. This includes the provision of surface equipment, portable structures, and other essential tools required for energy exploration and production. The company's revenue model is based on long-term and short-term rental agreements, service contracts, and maintenance fees. Significant partnerships with major energy producers and ongoing demand for energy infrastructure and services contribute to Zedcor's earnings, ensuring a stable and recurring income stream.

Zedcor Energy Inc Financial Statement Overview

Summary

Zedcor Energy Inc. shows a mixed financial performance. The company has strong revenue growth and gross margins, but weak net profit margins and cash flow challenges due to high capital expenditures. The balance sheet indicates manageable leverage but low returns to shareholders.

Income Statement

Zedcor Energy Inc. demonstrates a moderate performance in its income statement. The TTM Gross Profit Margin stands at approximately 50.49%, indicating effective cost management. However, the TTM Net Profit Margin is only 1.37%, reflecting limited profitability. Revenue growth from 2023 to the TTM is about 14.31%, suggesting a positive trajectory, although slower compared to the previous year's growth of 12.62%. EBIT and EBITDA margins for the TTM are relatively low at 3.99% and 26.73% respectively, pointing to room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 0.79 in the TTM, showing manageable leverage. The Return on Equity (ROE) for the TTM is low at 1.30%, indicating limited returns to shareholders. The Equity Ratio stands at 50.58%, reflecting a balanced capital structure with a sufficient equity buffer against liabilities.

Cash Flow

Cash flow analysis highlights some challenges for Zedcor Energy Inc. The Free Cash Flow Growth Rate is negative, with TTM Free Cash Flow at -$8.83 million, indicating significant capital expenditures outweighing operating cash flow. The Operating Cash Flow to Net Income Ratio is favorable at 19.72, suggesting strong cash conversion from profit. However, the negative Free Cash Flow to Net Income Ratio underscores ongoing cash flow strains.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
28.46M	24.89M	22.10M	13.55M	13.76M	16.96M
	Gross Profit
14.37M	12.39M	10.77M	6.17M	4.43M	4.86M
	EBIT
1.14M	3.84M	4.95M	1.95M	293.00K	-485.00K
	EBITDA
7.61M	9.14M	8.41M	3.86M	3.53M	3.21M
	Net Income Common Stockholders
389.00K	2.65M	6.00M	-3.90M	-4.68M	-8.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
161.00K	1.47M	571.00K	108.00K	761.00K	170.00K
	Total Assets
44.13M	42.97M	32.58M	19.80M	32.49M	42.23M
	Total Debt
26.04M	27.61M	20.68M	17.02M	26.88M	33.12M
	Net Debt
25.88M	26.14M	20.11M	16.91M	26.12M	32.95M
	Total Liabilities
27.96M	30.86M	24.09M	19.40M	28.47M	34.03M
	Stockholders Equity
16.17M	12.12M	8.49M	398.00K	4.02M	8.20M
Cash Flow		Free Cash Flow
-8.83M	-3.58M	-2.80M	-1.22M	939.00K	2.70M
	Operating Cash Flow
7.67M	9.89M	6.19M	4.54M	2.72M	4.20M
	Investing Cash Flow
-15.47M	-13.45M	-8.61M	6.58M	841.00K	188.00K
	Financing Cash Flow
12.27M	4.47M	2.88M	-11.77M	-2.97M	-4.38M

Zedcor Energy Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ZDC, the sentiment is Positive. The current price of 3.77 is above the 20-day moving average (MA) of 3.29, above the 50-day MA of 3.13, and above the 200-day MA of 2.91, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 71.55 is Negative, neither overbought nor oversold. The STOCH value of 88.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ZDC.

Zedcor Energy Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHX	79 Outperform	C$369.92M	6.51	25.15%	9.85%	4.69%	-34.62%
TOT	75 Outperform	C$382.21M	6.12	11.38%	3.63%	11.02%	102.23%
ZDC	74 Outperform	C$391.61M	124.67	7.90%	―	55.96%	53.54%
KEI	72 Outperform	C$352.40M	12.37	11.09%	―	24.05%	44.00%
Sector *	57 Neutral	$7.10B	3.09	-3.48%	5.73%	0.74%	-50.59%
ESI	55 Neutral	C$360.52M	14.37	-1.17%	―	-2.85%	-144.20%
EMO	42 Neutral	C$294.83M	―	-42.57%	―	―	51.26%

Zedcor Energy Inc Corporate Events

Zedcor Energy Inc. Achieves Record Q1 2025 Results with Strong U.S. Expansion

Zedcor Energy Inc. reported record financial results for the first quarter of 2025, with revenue reaching $11.5 million and an Adjusted EBITDA of $4.1 million. The company experienced significant growth in its U.S. operations, with 29% of its revenue coming from this region, and maintained high utilization rates for its security towers. Zedcor’s strategic expansion into the U.S. and increased demand in Canada have bolstered its market position, while its manufacturing capabilities in Houston provide insulation from tariffs. The company is on track to meet its manufacturing targets and continues to invest in expanding its customer base across North America.

The most recent analyst rating on (TSE:ZDC) stock is a Buy with a C$4.25 price target. To see the full list of analyst forecasts on Zedcor Energy Inc stock, see the TSE:ZDC Stock Forecast page.

Zedcor Inc. to Release Q1 2025 Financial Results and Host Conference Call

Zedcor Inc. has announced the release of its first quarter financial results for the period ending March 31, 2025, scheduled for May 21, 2025, after market close. The company will host a conference call on May 22, 2025, to discuss these results, led by CEO Todd Ziniuk and CFO Amin Ladha. This announcement is part of Zedcor’s ongoing efforts to engage with stakeholders and provide transparency about its financial performance, which could impact its market positioning and investor relations.

The most recent analyst rating on (TSE:ZDC) stock is a Buy with a C$4.25 price target. To see the full list of analyst forecasts on Zedcor Energy Inc stock, see the TSE:ZDC Stock Forecast page.

Zedcor Inc. Achieves Record Q4 2024 Financial Results Amid U.S. Expansion

Zedcor Inc. reported record financial results for the fourth quarter of 2024, with revenues reaching $10.3 million and adjusted EBITDA at $4.0 million, marking significant year-over-year growth. The company has successfully expanded its operations in the U.S., with over 20% of its revenue coming from this market, and maintained high utilization rates for its security towers. Zedcor’s strategic focus on customer diversification and operational efficiency has bolstered its market position, and the company is poised for further growth in 2025, supported by increased production capacity and a strong sales pipeline.

Zedcor Energy Inc. Achieves Manufacturing Milestone and Expands U.S. Market Presence

Zedcor Energy Inc. has reached a manufacturing milestone, producing 25 security towers per week, with plans to increase to 30 towers by the second quarter of 2025. The company is expanding its U.S. market presence, with significant growth in states like Texas and Colorado, and plans to further expand into Phoenix, Atlanta, Las Vegas, and California. Despite potential tariff impacts, Zedcor anticipates minimal financial disruption due to strategic procurement and plans to adjust pricing to maintain ROI targets.