Zentek Ltd. Common Stock (ZTEK)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earning power and a margin of safety. Zentek is not there yet. It is a 10-employee graphene and nanomaterials research company with brands like ZenGUARD, ZenFire, ZenICE and ZenArmor, plus the Albany graphite project. The latest reported quarter, fiscal Q1 2026, showed revenue of just $36,767 and a net loss of $3.5 million, with a negative margin of -9,590.85%. That is not a business with a proven moat; it is an early-stage commercialization effort. Financial health is weak despite low leverage. The debt-to-equity ratio is only 0.08 and beta is 0.29, but FairStock calculates ROE of -53.24% and ROCE of -27.71%. Trailing free cash flow is -$6.3 million, a -12.2% FCF yield against the $51.6 million market cap. The Altman Z-score of 1.49 sits in a worrying range, and the Piotroski F-score of 4/9 is mediocre. At the 2026-09-10 close of $0.52, FairStock shows a negative P/E of -7.45 and a price-to-book of 3.72. Paying almost four times book for a cash-burning company with microscopic revenue is not a Graham-style bargain. FairStock also cannot assign a Lynch category because only 0 years of filed annual results are available, needing 3. Could graphene coatings or graphite become valuable? Possibly, but hope is not an intrinsic value. I would want evidence of commercial revenue, narrower losses, and positive cash generation before calling this investment-grade.

In plain English: Zentek is a small company that researches graphene and related nanomaterials and is trying to sell products like ZenGUARD coatings and develop a graphite project. The business looks weak today: in fiscal Q1 2026 it reported only $36,767 of revenue and a $3.5 million loss, and it is burning cash. At the 2026-09-10 closing price of $0.52, the stock looks expensive relative to those tiny sales and losses.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-09-10 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer