OTCPK:ZEST

Stock Analysis Report

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Executive Summary

Ecoark Holdings, Inc., through its subsidiary, Zest Labs, Inc., provides freshness management solutions for fresh food growers, suppliers, processors, distributors, grocers, and restaurants.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Ecoark Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZEST's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.5%

ZEST

1.8%

US Software

1.3%

US Market


1 Year Return

558.0%

ZEST

41.9%

US Software

14.9%

US Market

Return vs Industry: ZEST exceeded the US Software industry which returned 38.2% over the past year.

Return vs Market: ZEST exceeded the US Market which returned 12.5% over the past year.


Shareholder returns

ZESTIndustryMarket
7 Day-6.5%1.8%1.3%
30 Day12.6%0.5%4.7%
90 Day434.3%19.8%17.1%
1 Year558.0%558.0%42.9%41.9%17.3%14.9%
3 Year-1.9%-1.9%147.7%139.2%38.9%29.9%
5 Yearn/a237.1%216.9%71.3%52.8%

Price Volatility Vs. Market

How volatile is Ecoark Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ecoark Holdings undervalued compared to its fair value and its price relative to the market?

53.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ZEST's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ZEST's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ZEST is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: ZEST is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZEST's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZEST is overvalued based on its PB Ratio (53.1x) compared to the US Software industry average (7.1x).


Next Steps

Future Growth

How is Ecoark Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.3%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ecoark Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of ZEST’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Ecoark Holdings's filings and announcementshere.
  • Explore growth companies in the Software industry.

Past Performance

How has Ecoark Holdings performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZEST is currently unprofitable.

Growing Profit Margin: ZEST is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZEST is unprofitable, but has reduced losses over the past 5 years at a rate of 4% per year.

Accelerating Growth: Unable to compare ZEST's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ZEST is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (7.9%).


Return on Equity

High ROE: ZEST has a negative Return on Equity (-211.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ecoark Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ZEST's short term assets ($1.3M) do not cover its short term liabilities ($17.9M).

Long Term Liabilities: ZEST's short term assets ($1.3M) exceed its long term liabilities ($1.2M).


Debt to Equity History and Analysis

Debt Level: ZEST's debt to equity ratio (156.5%) is considered high.

Reducing Debt: ZEST had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ZEST has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ZEST has less than a year of cash runway if free cash flow continues to grow at historical rates of 3.3% each year.


Next Steps

Dividend

What is Ecoark Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ZEST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ZEST's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ZEST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZEST's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZEST's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Randy May (56 yo)

2.92yrs

Tenure

US$200,000

Compensation

Mr. Randy Scott May has been the Chief Executive Officer of Ecoark Holdings, Inc since September 21, 2017. Mr. May founded Ecoark Holdings, Inc. (also known as, EcoArk, Inc.) in 2011 and served as its Chie ...


CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD200.00K) is below average for companies of similar size in the US market ($USD2.06M).

Compensation vs Earnings: Randy's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Randy May
Founder2.92yrsUS$200.00k3.11%
$ 10.9m
Peter Mehring
President & Director3.58yrsUS$200.00k1.87%
$ 6.6m
William Hoagland
Principal Financial Officer & Secretary1.25yrsUS$138.19k2.81%
$ 9.8m
Jay Puchir
Principal Accounting Officer0.42yrno data2.82%
$ 9.9m
Charles Rateliff
2.83yrsUS$782.94kno data

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: ZEST's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randy May
Founder2.92yrsUS$200.00k3.11%
$ 10.9m
Peter Mehring
President & Director3.58yrsUS$200.00k1.87%
$ 6.6m
Steven Nelson
Independent Director3.33yrsUS$169.00k0.036%
$ 128.0k
John Cahill
Independent Director4.25yrsUS$139.00k0.049%
$ 170.8k
Gary Metzger
Lead Independent Directorno dataUS$169.00k3.92%
$ 13.7m

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: ZEST's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 57.2%.


Top Shareholders

Company Information

Ecoark Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ecoark Holdings, Inc.
  • Ticker: ZEST
  • Exchange: OTCPK
  • Founded: 2011
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$350.909m
  • Shares outstanding: 98.02m
  • Website: https://www.zestlabs.com

Number of Employees


Location

  • Ecoark Holdings, Inc.
  • 5899 Preston Road
  • Suite 505
  • Frisco
  • Texas
  • 75034
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZESTOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 2016

Biography

Ecoark Holdings, Inc., through its subsidiary, Zest Labs, Inc., provides freshness management solutions for fresh food growers, suppliers, processors, distributors, grocers, and restaurants. It offers Zest ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/02 23:52
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.