ZEDCOR INC (ZDC.CA) Stock Fundamental Analysis

Canada • TSX Venture Exchange • TSX-V:ZDC • CA98923V1094

5.94 CAD

+0.09 (+1.54%)

Last: Jan 30, 2026, 07:00 PM

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to ZDC. ZDC was compared to 12 industry peers in the Trading Companies & Distributors industry. While ZDC is still in line with the averages on profitability rating, there are concerns on its financial health. ZDC shows excellent growth, but is valued quite expensive already.

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1. Profitability

1.1 Basic Checks

In the past year ZDC was profitable.
ZDC had a positive operating cash flow in the past year.
In multiple years ZDC reported negative net income over the last 5 years.
Each year in the past 5 years ZDC had a positive operating cash flow.

1.2 Ratios

ZDC has a worse Return On Assets (1.50%) than 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 2.69%, ZDC is doing worse than 83.33% of the companies in the same industry.
ZDC has a worse Return On Invested Capital (3.69%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZDC is in line with the industry average of 8.04%.

		Industry Rank	Sector Rank
ROA	1.5%
ROE	2.69%
ROIC	3.69%

ROA(3y)9%

ROA(5y)-1.42%

ROE(3y)32.55%

ROE(5y)-199.79%

ROIC(3y)6.99%

ROIC(5y)6.72%

1.3 Margins

ZDC's Profit Margin of 3.10% is in line compared to the rest of the industry. ZDC outperforms 58.33% of its industry peers.
ZDC has a better Operating Margin (8.42%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of ZDC has declined.
The Gross Margin of ZDC (63.78%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of ZDC has grown nicely.

		Industry Rank	Sector Rank
OM	8.42%
PM (TTM)	3.1%
GM	63.78%

OM growth 3Y-11.22%

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y8.76%

GM growth 5Y15.42%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZDC is destroying value.
ZDC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ZDC has more shares outstanding
ZDC has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 7.22 indicates that ZDC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.22, ZDC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ZDC has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.43, ZDC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.43
Debt/FCF	N/A
Altman-Z	7.22

ROIC/WACC0.41

WACC9.06%

2.3 Liquidity

A Current Ratio of 0.78 indicates that ZDC may have some problems paying its short term obligations.
The Current ratio of ZDC (0.78) is worse than 91.67% of its industry peers.
A Quick Ratio of 0.76 indicates that ZDC may have some problems paying its short term obligations.
The Quick ratio of ZDC (0.76) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	0.78
Quick Ratio	0.76

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 1038.46% over the past year.
Looking at the last year, ZDC shows a very strong growth in Revenue. The Revenue has grown by 80.50%.
The Revenue has been growing by 14.23% on average over the past years. This is quite good.

EPS 1Y (TTM)1038.46%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-61.29%

Revenue 1Y (TTM)80.5%

Revenue growth 3Y34.53%

Revenue growth 5Y14.23%

Sales Q2Q%75.04%

3.2 Future

The Earnings Per Share is expected to grow by 92.41% on average over the next years. This is a very strong growth
ZDC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 45.67% yearly.

EPS Next Y-10%

EPS Next 2Y84.39%

EPS Next 3Y109.54%

EPS Next 5Y92.41%

Revenue Next Year84.03%

Revenue Next 2Y84.22%

Revenue Next 3Y73.94%

Revenue Next 5Y45.67%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 297.00, ZDC can be considered very expensive at the moment.
83.33% of the companies in the same industry are cheaper than ZDC, based on the Price/Earnings ratio.
ZDC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.32.
Based on the Price/Forward Earnings ratio of 84.81, the valuation of ZDC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZDC indicates a slightly more expensive valuation: ZDC is more expensive than 66.67% of the companies listed in the same industry.
ZDC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	297
Fwd PE	84.81

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZDC indicates a rather expensive valuation: ZDC more expensive than 91.67% of the companies listed in the same industry.