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ZENA Stock Risk & Deep Value Analysis

ZenaTech Inc

Technology • Software - Infrastructure

DVR Score

8.2

out of 10

Hidden Gem

What You Need to Know About ZENA Stock

We analyzed ZenaTech Inc using our deep value framework. Sign in to see our full verdict and DVR Score.

We ran ZENA through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.

Updated Apr 21, 2026Run Fresh Analysis →

ZENA Risk Analysis & Red Flags

What Could Go Wrong

The company is burning cash with persistent losses and a high valuation based on future growth. If ongoing M&A and R&D do not rapidly translate into substantial, profitable revenue growth and large, recurring contracts within the next 12-18 months, significant dilution via capital raises or a sharp re-rating of its valuation multiple could occur, causing a substantial stock price decline.

Risk Matrix

Overall

Aggressive

Financial

High

Market

Medium

Competitive

High

Execution

High

Regulatory

Medium

Red Flags

  • Persistent operating losses and negative cash flow from operations.

  • Extremely high TTM P/S ratio (87.38) given the current revenue base (implied TTM revenue ~$1.14M).

  • Growth strategy heavily reliant on acquisitions (21st acquired company), posing integration and synergy risks.

  • Lack of granular up-to-date financial metrics (e.g., specific current/quick ratios, share structure) from recent reports, requiring higher due diligence.

Upcoming Risk Events

  • 📅

    Disappointing Q4 2025/Q1 2026 earnings results or weak guidance

  • 📅

    Failure to secure major utility/defense contracts

  • 📅

    Increased competitive pressure or technological obsolescence

When to Reconsider

  • 🚪

    Failure to announce major utility or defense contracts by end of 2026.

  • 🚪

    Quarterly revenue declines for two consecutive quarters.

  • 🚪

    Clear evidence of excessive share dilution (e.g., >20% increase in outstanding shares) without proportional revenue growth.

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What Does ZenaTech Inc (ZENA) Do?

Market Cap

$98.81M

Sector

Technology

Industry

Software - Infrastructure

Employees

30

ZenaTech, Inc., an enterprise software technology company, develops cloud-based software applications in Canada. It provides cloud-based enterprise software solutions for the medical records industry; software solutions for the automated facility management and center industry; safety and compliance management software and mobile solutions; field service management software and mobile solutions; browser-based enterprise software applications for public safety; and quantum computing solutions. The company also engages in the manufacturing, sale, and distribution of drones. ZenaTech, Inc. was formerly known as ZenaDrone, Inc. and changed its name to ZenaTech, Inc. on October 5, 2020. The company was incorporated in 2017 and is based in Vancouver, Canada.

Visit ZenaTech Inc Website

Investment Thesis

ZenaTech is a highly speculative, aggressive growth play positioned to capitalize on the convergence of AI, drone technology, and decentralized energy grid optimization. Its rapid M&A strategy, recent expansion into US defense, and proprietary AI position it for significant market share gains in massive, critical sectors, potentially leading to a 10x return as its technology scales and major contracts materialize.

Is ZENA Stock Undervalued?

ZenaTech (ZENA) continues to present a compelling, albeit high-risk, 10x growth opportunity within 3-5 years. The company demonstrates strong execution on its strategic vision, marked by its 21st acquisition expanding the Drone-as-a-Service network and a significant push into the US defense sector with ZenaDrone pilots and new facilities. These developments align with its previous goal of establishing market leadership in AI-powered decentralized energy grid optimization. While traditional profitability metrics remain weak (persistent losses, high TTM P/S of 87.38, negative FCF), which is typical for early-stage disruptive companies, leadership's consistent delivery on strategic milestones and active capital deployment for growth (M&A) are positive indicators. No material negative news or red flags have emerged since the last analysis, justifying a sustained high score, reflecting continued momentum and execution in a highly speculative but potentially transformative sector.

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ZENA Price Targets & Strategy

12-Month Target

$9.00

Bull Case

$15.00

Bear Case

$1.00

Valuation Basis

Based on 85x forward P/S multiple applied to $5.0M estimated FY26 TTM revenue, aligning with analyst consensus.

Entry Strategy

Dollar-cost average between $1.80-$2.20, particularly on dips post-earnings or market volatility, seeking support near previous lows.

Exit Strategy

Take 30-50% profit at $9.00-$10.00, remaining position to capitalize on long-term 10x potential; Stop loss at $1.50 (below recent support).

Portfolio Allocation

5-10% for aggressive risk tolerance.

Price Targets & Strategy

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Is ZENA Financially Healthy?

Profitability

Gross Margin

100.00%

Operating Margin

-198.84%

Net Margin

-314.67%

Return on Equity

-93.10%

Revenue Growth

320.93%

EPS

$-0.87

Balance Sheet

Current Ratio

2.17

Quick Ratio

2.17

Debt/Equity

0.46

Cash Flow

EBITDA

-$7.07M

Other

Beta (Volatility)

2.46

Does ZENA Have a Competitive Moat?

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Moat Rating

🛡️ Narrow

Moat Trend

Expanding

Moat Sources

3 Identified

Intangible Assets/IP (proprietary AI technology, software platforms)Switching Costs (deep integration with utility/defense clients, multi-year contracts)Efficient Scale (expanding DaaS network and operational facilities)

The proprietary AI and deep integration with critical infrastructure (energy, defense) could create durable switching costs and network effects, but sustained R&D investment and successful contract wins are essential to maintain and strengthen this moat against larger, well-funded competitors.

Moat Erosion Risks

  • Rapid technological obsolescence or emergence of superior AI solutions.
  • Larger tech companies or defense contractors entering ZENA's niche with greater resources.
  • Failure to secure and retain major enterprise/government contracts leading to loss of scale.

ZENA Competitive Moat Analysis

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ZENA Market Intelligence

Sentiment & Insider Activity

Social Sentiment

Neutral (Potential for bullish sentiment from retail investors attracted to high-growth narrative, but limited data provided).

Institutional Sentiment

Positive (One analyst 'Buy' rating with a significant $9 target, Zacks ABR 1.00).

Insider Activity (Form 4)

CEO Dr. Shaun Passley acquired 6,744,000 shares of Boardwalktech Software indirectly via ZenaTech, taking a 9.59% stake effective April 13, 2026. No direct Form 4 filings for ZENA shares.

Options Flow

Options imply a significant 34.4% share price move post-Q1 2026 earnings, indicating high volatility expectations.

Earnings Intelligence

Next Earnings

Q4 2025 announced April 22, 2026 (tomorrow). Q1 2026 date unconfirmed.

Surprise Probability

High (given limited analyst estimates and implied options volatility).

Historical Earnings Pattern

No specific historical pattern provided, but likely high volatility given early-stage nature and recent strategic pivots.

Key Metrics to Watch

Revenue growth (especially from defense pilots and DaaS acquisitions)Progress on securing multi-year contractsCash burn rate and balance sheet liquidity

Competitive Position

Top Competitor

IOT (General AI/IoT ETF; direct competitors are niche)

Market Share Trend

Gaining (via aggressive M&A and new market entries like defense and DaaS network expansion).

Valuation vs Peers

Trading at a significant premium on TTM P/S (87.38) compared to most established peers, reflecting high growth expectations rather than current profitability. Lags peers in efficiency metrics.

Competitive Advantages

  • Proprietary AI-powered technology for decentralized energy grid optimization.
  • Expanding Drone as a Service (DaaS) network through strategic acquisitions.
  • Strategic focus and early inroads into the US defense sector with ZenaDrone.

Market Intelligence

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What Could Drive ZENA Stock Higher?

Near-Term (0-6 months)

  • Q4 2025 Earnings Report (announced April 22, 2026)
  • Q1 2026 Earnings Report (date unconfirmed, implied significant volatility)
  • 2026 ZenaDrone US defense pilot program results
  • Integration success of recent acquisitions

Medium-Term (6-18 months)

  • Securing multi-year utility contracts (per previous analysis)
  • Full operationalization of Mesa AZ facility and Baton Rouge AI R&D center
  • Expansion of Drone as a Service network beyond Pacific Northwest

Long-Term (18+ months)

  • Achieving market leadership in AI-powered energy grid optimization
  • Significant adoption of ZenaDrone in defense and commercial sectors
  • Development of further disruptive AI/quantum computing applications

Catalysts & Growth Drivers

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What's the Bull Case for ZENA?

  • Acceleration in organic revenue growth, not solely acquisition-driven.

  • Announcement and details of significant multi-year utility or defense contracts.

  • Improvements in gross and operating margins, signaling a path towards profitability.

Bull Case Analysis

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Competing with ZENA

See how ZenaTech Inc compares to related companies

CompanyMarket CapDVR ScoreP/ERevenueProfit MarginRev Growth

ZenaTech Inc

ZENA

$98.8M8.2$3.2M-314.7%320.9%

Apple Inc

AAPL

$3.9T1.533.2$391.0B27.0%10.1%Compare →

Alphabet Inc

GOOGL

$4.7T1.029.1$402.8B37.9%17.4%Compare →

Meta Platforms Inc

META

5.115.730.1%22.2%Compare →

Microsoft Corp

MSFT

0.5Compare →

NVIDIA Corp

NVDA

$4.4T5.338.5$215.9B55.6%65.0%Compare →

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How ZenaTech Inc Makes Money

ZenaTech Inc. is a technology company specializing in AI-powered solutions, primarily focusing on two key areas: optimizing decentralized energy grids and providing Drone as a Service (DaaS) capabilities. For energy grids, it likely offers SaaS platforms to utilities for enhanced efficiency and management. Its DaaS network, expanded through numerous acquisitions, delivers drone services for various commercial and industrial applications. Furthermore, the company is strategically pushing into the US defense sector, aiming to supply advanced ZenaDrone technology and related services to government clients. In essence, ZenaTech sells disruptive AI and drone technology and services to major industries and government entities.

Read Full Business Model Breakdown

FAQ

What is the DVR Score for ZenaTech Inc (ZENA)?

As of April 21, 2026, ZenaTech Inc has a DVR Score of 8.2 out of 10, placing it in the "Hidden Gem" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.

What is the market capitalization of ZenaTech Inc?

ZenaTech Inc's market capitalization is approximately $98.8M. The company operates in the Technology sector within the Software - Infrastructure industry.

What ticker symbol does ZenaTech Inc use?

ZENA is the ticker symbol for ZenaTech Inc. The company trades on the NCM.

What is the risk level for ZENA stock?

Our analysis rates ZenaTech Inc's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.

Is ZenaTech Inc's revenue growing?

ZenaTech Inc has reported revenue growth of 320.9%. The company is showing strong top-line momentum.

Is ZENA stock profitable?

ZenaTech Inc has a profit margin of -314.7%. The company is currently unprofitable.

How often is the ZENA DVR analysis updated?

Our AI-powered analysis of ZenaTech Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 21, 2026.

Important Disclaimer – Not Financial Advice

Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for ZENA (ZenaTech Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.

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