ZenaTech, Inc. (NASDAQ: ZENA)

Sector: Technology Industry: Software - Infrastructure CIK: 0001997403
Market Cap 111.62 Mn
P/B 2.71
P/E -4.22
P/S 13.29
ROIC (Qtr) -22.77
Div Yield % 0.00
Rev 1y % (Qtr) 1,225.31
Total Debt (Qtr) 32.11 Mn
Debt/Equity (Qtr) 0.78

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 10.26M provide 93.21x coverage of short-term debt 110085, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 59.48M provide exceptional 48.67x coverage of deferred revenue 1.22M, showing strong service capability backing.
  • Operating cash flow of (25.90M) fully covers other non-current liabilities (1.22M) by 21.19x, showing strong long-term stability.
  • Short-term investments of 13.52M provide solid 11.06x coverage of other current liabilities 1.22M, indicating strong liquidity.
  • Tangible assets of 59.48M provide robust 48.67x coverage of other current liabilities 1.22M, indicating strong asset backing.

Bear case

  • Operating cash flow of (25.90M) provides insufficient coverage of deferred revenue obligations of 1.22M, which is -21.19x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (25.90M) shows concerning coverage of stock compensation expenses of 1.56M, with a -16.61 ratio indicating potential earnings quality issues.
  • Free cash flow of (32.12M) provides weak coverage of capital expenditures of 6.22M, with a -5.16 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (14.01M) show weak coverage of depreciation charges of 875465, with a -16 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (32.12M) represents just -0.59x of debt issuance 54.25M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,197.34 Bn 26.81 10.47 57.61 Bn
2 ORCL Oracle Corp 506.93 Bn 48.84 12.87 124.39 Bn
3 PLTR Palantir Technologies Inc. 341.64 Bn 311.89 87.69 0.24 Bn
4 PANW Palo Alto Networks Inc 118.39 Bn 105.97 12.39 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 109.19 Bn -347.56 23.92 0.82 Bn
6 SNPS Synopsys Inc 76.22 Bn 57.21 10.80 14.29 Bn
7 FTNT Fortinet, Inc. 62.40 Bn 33.30 9.52 1.00 Bn
8 NET Cloudflare, Inc. 60.91 Bn -591.17 30.25 3.50 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.53 2.43
EV to Cash from Ops. EV/CFO -4.64 11.30
EV to Debt EV to Debt 3.74 9.88
EV to EBIT EV/EBIT -8.58 -8.20
EV to EBITDA EV/EBITDA -9.07 8.19
EV to Free Cash Flow [EV/FCF] EV/FCF -3.74 30.23
EV to Market Cap EV to Market Cap 1.08 0.35
EV to Revenue EV/Rev 14.31 35.31
Price to Book Value [P/B] P/B 2.71 4.88
Price to Earnings [P/E] P/E -4.22 -13.51
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.26
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.68
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) -1.13 -11.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -996.51 -410.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 7,742.27 224.71
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -8,696.09 18.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -12,665.64 42.50
EBIT Growth (1y) % EBIT 1y % (Qtr) -8,684.80 13.21
EBT Growth (1y) % EBT 1y % (Qtr) -3,240.17 7.35
EPS Growth (1y) % EPS 1y % (Qtr) -14.29 68.33
FCF Growth (1y) % FCF 1y % (Qtr) -607.94 293.84
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -178.27 47.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.11 0.68
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.92 1.21
Current Ratio Curr Ratio (Qtr) 5.42 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.78 -0.95
Interest Cover Ratio Int Coverage (Qtr) -1.13 -11.94
Times Interest Earned Times Interest Earned (Qtr) -1.13 -11.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -156.40 -550.26
EBIT Margin % EBIT Margin % (Qtr) -166.85 -242.75
EBT Margin % EBT Margin % (Qtr) -314.67 -608.84
Gross Margin % Gross Margin % (Qtr) -15.20 52.38
Net Profit Margin % Net Margin % (Qtr) -314.70 -611.52