Zenta Group Co Ltd (NASDAQ: ZGM)

Sector: Industrials Industry: Consulting Services CIK: 0002011458
Market Cap 20.03 Mn
P/B 2.90
P/E 20.00
P/S 6.33
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 73,245.00
Debt/Equity (Qtr) 0.01
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About

Investment thesis

Bull case

  • Healthy cash reserves of 1.04M provide 15.43x coverage of short-term debt 67537, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 6.42M provides 87.70x coverage of total debt 73245, indicating robust asset backing and low credit risk.
  • Retained earnings of 2.10M provide full 368.25x coverage of long-term debt 5708, indicating strong internal capital position.
  • Tangible assets of 6.42M provide robust 18.01x coverage of other current liabilities 356725, indicating strong asset backing.
  • Cash reserves of 1.04M provide robust 2.46x coverage of current liabilities 424262, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (3.66M) provides minimal -12.67x coverage of tax expenses of 289134, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 1.29M show weak coverage of depreciation charges of 470512, with a 2.74 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (3.66M) barely covers operating expenses of 973278 with a -3.76 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • High financing cash flow of 4.59M relative to working capital of 3.03M, which is 1.51x suggests concerning dependence on external funding for operational needs.
  • Tax assets of 1434 provide limited offset against tax liabilities of 56444, which is 0.03x, indicating potential future cash flow pressure from tax obligations.

Product and Service Breakdown of Revenue (2025)

Collateral Held Breakdown of Revenue (2025)

Peer comparison

Companies in the Consulting Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRSK Verisk Analytics, Inc. 28.99 Bn 59.50 10.85 4.89 Bn
2 EFX Equifax Inc 23.01 Bn 48.18 7.65 4.81 Bn
3 BAH Booz Allen Hamilton Holding Corp 9.48 Bn 11.30 0.83 4.14 Bn
4 FCN Fti Consulting, Inc 5.36 Bn 20.13 1.45 0.74 Bn
5 HURN Huron Consulting Group Inc. 2.29 Bn 21.14 1.38 0.65 Bn
6 ICFI ICF International, Inc. 1.43 Bn 22.60 0.96 0.62 Bn
7 CRAI Cra International, Inc. 1.10 Bn 25.41 1.63 0.19 Bn
8 SBC SBC Medical Group Holdings Inc 0.48 Bn 11.17 2.71 0.03 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.72 1.96
EV to Cash from Ops. EV/CFO -5.45 5.36
EV to Debt EV to Debt 272.30 58.47
EV to EBIT EV/EBIT 15.45 18.59
EV to EBITDA EV/EBITDA 10.97 20.71
EV to Free Cash Flow [EV/FCF] EV/FCF -5.45 11.61
EV to Market Cap EV to Market Cap 1.00 -835.88
EV to Revenue EV/Rev 6.30 5.73
Price to Book Value [P/B] P/B 2.90 3.44
Price to Earnings [P/E] P/E 20.00 22.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.70
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.32
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 6.40
Interest Coverage Interest Coverage 2,313.67 92.47
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -330.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 218.62 126.66
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.43
EBIAT Growth (1y) % EBIAT Growth (1y) % 25.42 -18.91
EBITDA Growth (1y) % EBITDA Growth (1y) % 62.36 -12.32
EBIT Growth (1y) % EBIT Growth (1y) % 31.62 -132.53
EBT Growth (1y) % EBT Growth (1y) % 31.56 -937.51
EPS Growth (1y) % EPS Growth (1y) % 25.00 -76.24
FCF Growth (1y) % FCF Growth (1y) % -975.65 -11.33
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 57.86 12.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.43 0.77
Cash Payout Ratio Cash Payout Ratio 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 2.46 2.02
Current Ratio Curr Ratio (Qtr) 8.15 4.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.55
Interest Cover Ratio Interest Cover Ratio 2,313.67 92.47
Times Interest Earned Times Interest Earned 2,313.67 92.47
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 55.70 -16.97
EBIT Margin % EBIT Margin % 40.81 -96.24
EBT Margin % EBT Margin % 40.79 -22.60
Gross Margin % Gross Margin % 78.10 54.26
Net Profit Margin % Net Profit Margin % 31.70 -25.32