ZENTEK LTD Reports Earnings Results for Q1 of FY2024
August 13, 2023
🌥️Earnings Overview
On August 11 2023, ZENTEK LTD ($NASDAQ:ZTEK) reported its first quarter FY2024 financial results with total revenue of CAD 0.0 million for the period ending June 30 2023, representing a decrease of 100.0% from the same period in the prior year. Net income for the quarter was CAD -3.2 million, compared to -5.0 million in the previous year.
Stock Price
Stock opened at $1.5 and closed at $1.5, dropping 3.2% from its previous closing price of $1.6. This marks a decline of profits from the same period last year. This resulted in lower operating income and lower earnings per share. The company also increased its cash reserves by 5%, which indicates its commitment to maintain liquidity and financial flexibility going forward.
Overall, despite the decline in profits for the first quarter of FY2024, ZENTEK LTD remains confident in its ability to deliver long-term value to shareholders. The company’s strategy of focusing on cost efficiencies and increasing cash reserves remain key drivers of its success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Zentek Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 0.04 | -12.54 | -31174.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Zentek Ltd. More…
| Operations | Investing | Financing |
| -11.66 | 0.72 | -0.92 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Zentek Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.87 | 2.74 | 0.28 |
Key Ratios Snapshot
Some of the financial key ratios for Zentek Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | – | -31269.8% |
| FCF Margin | ROE | ROA |
| -33306.8% | -26.6% | -25.2% |
Analysis
GoodWhale has conducted an analysis of ZENTEK LTD’s financials, which revealed an overall intermediate health score of 4/10 with regard to its cashflows and debt. This suggests that the company could potentially survive any crisis without the risk of bankruptcy. However, our analysis showed that ZENTEK LTD is particularly strong in asset and growth components, but weaker in dividend and profitability. We have classified ZENTEK LTD as a ‘rhino’, a term that we have given to companies that have achieved moderate revenue or earnings growth. As such, we believe that the company may attract investors who are looking for a stable but growth-oriented option. Those who are willing to take on a little more risk may also be interested in ZENTEK LTD due to its strong asset and growth fundamentals. More…
Summary
Investors are showing caution towards ZENTEK LTD after the release of its first quarter FY2024 results. Revenue for the quarter was 0.0 million, a 100.0% decline from the same period in the prior year. Net income for the quarter moved from -5.0 million to -3.2 million, however this still represents a significant loss and may be a cause for concern for potential investors.
Analysts will be closely watching the company’s performance to gauge whether the current financials are a blip or part of a longer-term trend. In the short-term, investors appear to be reacting negatively to the news with stock prices dropping on the same day of the report.
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