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Remark Holdings (MARK)
OTHER OTC:MARK
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Remark Holdings
(OTC:MARK)
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Rating:28Underperform
Price Target:―
Remark Holdings faces significant financial challenges with negative net income, high leverage, and cash flow issues. Technical indicators show a bearish trend, with some potential for reversal. Valuation metrics further highlight its unattractiveness due to ongoing losses and no dividend yield. Immediate strategic interventions are required to address these financial and operational issues.
Positive Factors
AI Software Focus
Remark Holdings' focus on AI solutions positions it well in a growing industry, providing opportunities for long-term growth and innovation.
Service Contracts
Service contracts offer a recurring revenue stream, enhancing financial stability and customer retention over time.
Earnings Improvement
A significant EPS growth indicates potential improvement in profitability, suggesting effective cost management or revenue growth strategies.
Negative Factors
High Leverage
High leverage increases financial risk and limits flexibility, necessitating restructuring to ensure long-term viability.
Negative Cash Flow
Persistent negative cash flow indicates operational inefficiencies, impacting the company's ability to invest in growth and innovation.
Revenue Decline
A significant decline in revenue growth signals challenges in market demand or competitive positioning, requiring strategic intervention.
Remark Holdings (MARK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$309.51K
Dividend YieldN/A
Average Volume (3M)203.90K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees46
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)N/A
Shares Outstanding61,902,454
10 Day Avg. Volume49,056
30 Day Avg. Volume203,898
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.21
Price to Sales (P/S)1.88
P/FCF Ratio-0.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Remark Holdings Business Overview & Revenue Model
Company DescriptionRemark Holdings, Inc. is a diversified global technology company primarily focused on the development and deployment of artificial intelligence (AI) solutions. The company offers a range of innovative AI-driven software products, primarily targeting applications in retail, financial services, and public safety sectors. Remark Holdings aims to improve operational efficiency and customer engagement through its advanced data analytics and machine learning technologies.
How the Company Makes MoneyRemark Holdings generates revenue through the sale and licensing of its AI-powered software solutions and platforms. These solutions are designed to enhance decision-making and operational efficiencies for businesses across various industries. The company also earns income through service contracts for the implementation, customization, and ongoing support of their software products. Additionally, Remark Holdings may engage in strategic partnerships and collaborations to expand its market reach and drive additional revenue streams. However, specific details on any significant partnerships or revenue breakdowns are not available.
Remark Holdings Earnings Call Summary
Earnings Call Date:Aug 19, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
Remark Holdings showcased significant progress in expanding its U.S. business, with notable contract wins and strategic partnerships. However, the company still faces financial challenges, including a net loss and cash flow concerns.Q2-2024 Updates
Positive Updates
Successful Transition to U.S. Market
Remark Holdings secured a significant contract with Clark County School District, valued at $45 million over 9 years, marking a successful transition of revenue base from Asia to the U.S.
AI Product Expansion
Introduction of the Remark Fast AI Training Platform, a SaaS product that provides AI training infrastructures and advanced analytics capabilities.
Strategic Partnerships
Remark AI completed migration to Microsoft Azure platform, preparing for a potential $400 million business capture over the next 5 years with Microsoft.
Showcase at New York City Smart City Expo
Remark AI showcased its AI solutions in conjunction with Oracle and NVIDIA, leading to additional POCs for transforming top 100 U.S. cities into Smart Cities.
Operating Loss Reduction
Operating loss reduced by $0.8 million, from $4 million in Q2 2023 to $3.2 million in Q2 2024.
Negative Updates
Net Loss
Remark Holdings reported a net loss of $5.3 million or $0.12 per diluted share, compared to a net loss of $5.9 million or $0.42 per diluted share in Q2 2023.
Cash Flow Concerns
Cash balance at June 30, 2024, was $0.4 million, with $6.1 million used in operating activities during Q2 2024.
Debt Restructuring
Resolved outstanding events of default with Mudrick Capital Management by exchanging nonconvertible notes for convertible debentures.
Company Guidance
During Remark Holdings' Q2 2024 earnings call, significant guidance was provided, highlighting key financial metrics and strategic developments. The company successfully completed a project with the Clark County School District, generating $3.7 million in revenue for the quarter. Despite an operating loss of $3.2 million, this marked an improvement from a $4 million loss in Q2 2023. Net loss also decreased to $5.3 million, or $0.12 per diluted share, compared to $5.9 million, or $0.42 per diluted share, in the previous year. Remark Holdings resolved default issues with Mudrick Capital by exchanging nonconvertible notes for convertible debentures. The company emphasized its strategic shift from Asia to the U.S. market, exemplified by its partnership with the Clark County School District and ongoing collaborations with Microsoft Azure and Oracle, aiming to capture $400 million in business over the next five years.Remark Holdings Financial Statement Overview
Summary
Remark Holdings is facing significant financial difficulties across all major financial statements. The income statement reveals persistent losses and negative margins, while the balance sheet reflects high leverage and negative equity. Cash flow issues further complicate the financial picture, with the company struggling to generate positive operational cash flow. Immediate strategic actions are needed to stabilize and improve the company's financial health.Income Statement
Remark Holdings' income statement reveals significant challenges, highlighted by negative net income and EBIT over multiple periods. Despite a modest revenue increase in TTM, profitability remains weak as indicated by negative margins across the board. The company faces difficulties in achieving positive net profit margins, suggesting a need for cost management and revenue enhancement strategies.15
Very Negative
Balance Sheet
The balance sheet for Remark Holdings shows a precarious financial position with negative stockholders' equity and high leverage, as reflected by a concerning debt-to-equity scenario. The negative equity ratio indicates that liabilities exceed assets, presenting a risk to financial stability. These factors underscore the need for balance sheet restructuring to improve financial health.10
Very Negative
Cash Flow
Cash flow analysis indicates persistent issues, with negative operating and free cash flows suggesting liquidity concerns. Although there is a slight improvement in free cash flow in the TTM, the operating cash flow to net income ratio remains unfavorable. This highlights ongoing operational inefficiencies and cash management challenges that require attention.20
Very Negative
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.63M | 4.40M | 11.67M | 15.99M | 10.14M | 5.02M |
| Gross Profit | 1.15M | 1.08M | 335.00K | 4.54M | 3.72M | 1.51M |
| EBITDA | -33.10M | -24.57M | -47.83M | 29.98M | -12.04M | -20.15M |
| Net Income | -36.60M | -29.15M | -55.48M | 27.47M | -13.69M | -23.00M |
Balance Sheet | ||||||
| Total Assets | 2.61M | 10.24M | 14.44M | 75.50M | 11.31M | 14.83M |
| Cash, Cash Equivalents and Short-Term Investments | 21.00K | 145.00K | 52.00K | 56.54M | 854.00K | 272.00K |
| Total Debt | 19.87M | 17.04M | 14.80M | 28.02M | 3.50M | 19.68M |
| Total Liabilities | 58.23M | 49.83M | 34.86M | 44.47M | 20.40M | 42.55M |
| Stockholders Equity | -55.62M | -39.59M | -20.43M | 31.03M | -9.09M | -27.73M |
Cash Flow | ||||||
| Free Cash Flow | -8.99M | -10.51M | -18.13M | -20.40M | -18.34M | -19.92M |
| Operating Cash Flow | -8.41M | -10.46M | -16.62M | -20.17M | -18.05M | -19.79M |
| Investing Cash Flow | -588.00K | -51.00K | 4.82M | 2.10M | -290.00K | 11.47M |
| Financing Cash Flow | 8.74M | 10.60M | -2.34M | 31.41M | 18.92M | -16.96M |
Remark Holdings Technical Analysis
Negative
0.01
Price Trends
0.04
Negative
0.04
Negative
Market Momentum
>-0.01
Negative
27.17
Positive
34.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MARK, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.04, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 27.17 is Positive, neither overbought nor oversold. The STOCH value of 34.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MARK.
Remark Holdings Risk Analysis
Remark Holdings disclosed 30 risk factors in its most recent earnings report. Remark Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Remark Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $11.81M | ― | -25.48% | ― | 0.54% | 70.74% | |
52 Neutral | $3.10M | <0.01 | -1102.76% | ― | 16.50% | ― | |
41 Neutral | $12.16M | ― | -993.23% | ― | -44.25% | 82.71% | |
41 Neutral | $2.30M | ― | -46.76% | ― | -15.10% | -177.14% | |
38 Underperform | $10.90M | ― | -93.31% | ― | 68.56% | 89.48% | |
28 Underperform | $309.51K | >-0.01 | 65.81% | ― | ― | ― |
* Technology Sector Average
MARK
Remark Holdings
0.01
-0.11
-91.67%
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1.12
-0.23
-17.04%
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Taoping
2.57
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2.96
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DTSS
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1.20
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RVYL
Ryvyl
0.34
-1.12
-76.71%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.