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Powerfleet (AIOT)
NASDAQ:AIOT
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Powerfleet
(NASDAQ:AIOT)
55Neutral
Positive Factors
Business Transformation
The completion of both the Fleet Complete and MiX Telematics combination has fundamentally transformed PowerFleet’s business, driving global scale and providing a platform for accelerated growth.
Cost Synergies
PowerFleet's cost synergy program has generated $15 million in annualized savings, with expectations to exceed $60 million by year-end.
Earnings
PowerFleet reported sales of $106 million and adjusted EBITDA of $22.5 million for Q3/25, exceeding both analyst and consensus estimates.
Negative Factors
EBITDA Estimates
Adjusted EBITDA estimates for 2025 and 2026 have been revised down slightly to account for exit run-rate commentary.
Powerfleet (AIOT) vs. S&P 500 (SPY)
Market Cap
$606.89M
Dividend YieldN/A
Average Volume (3M)1.80M
Price to Earnings (P/E)―
Beta (1Y)2.42
Revenue Growth67.20%
EPS Growth-165.24%
CountryUS
Employees1,954
SectorTechnology
Sector Strength45
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-2.02
Shares Outstanding132,509,340
10 Day Avg. Volume1,597,650
30 Day Avg. Volume1,797,439
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.99
Price to Cash Flow (P/CF)-31.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.00Price Target Upside133.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Powerfleet Business Overview & Revenue Model
Company DescriptionPowerFleet, Inc. provides wireless Internet-of-Things asset management solutions in the United States, Israel, and internationally. The company offers real-time intelligence for organizations to capture IoT data from various types of assets with devices and sensors to increase efficiencies, and improve safety and security, as well as increase their profitability in easy-to-understand reports, dashboards, and real-time alerts; and application programming interfaces for additional integrations and development to boost other enterprise management systems and third-party applications. It also provides hosting, maintenance, and support and consulting services; and Software as a Service, including system monitoring, help desk technical support, escalation procedure development, routine diagnostic data analysis, and software updates services. The company offers its products under the PowerFleet, Pointer, and Cellocator brands. It sells its products to commercial and government sectors in manufacturing, automotive manufacturing, wholesale and retail, food and grocery distribution, pharmaceutical and medical distribution, construction, mining, utilities, heavy industry, aerospace and defense, homeland security, and vehicle rental, logistics, shipping, and freight transportation markets, as well as through indirect sales channels, such as original equipment manufacturers, vehicle importers, distributors, and industrial equipment dealers. The company was formerly known as I.D. Systems, Inc. PowerFleet, Inc. was incorporated in 1993 and is headquartered in Woodcliff Lake, New Jersey.
How the Company Makes MoneyPowerfleet generates revenue primarily through the sale and subscription of its IoT solutions and services. The company's key revenue streams include hardware sales for telematics and asset tracking devices, software subscriptions for fleet management platforms, and professional services for customization and integration of their solutions. Additionally, Powerfleet may engage in strategic partnerships with vehicle manufacturers, logistics companies, and technology firms to expand its market reach and enhance its product offerings, contributing to its earnings.
Powerfleet Financial Statement Overview
Summary
Powerfleet faces significant financial hurdles. The income statement highlights revenue decline and persistent losses, while the balance sheet shows increased leverage. Cash flow analysis indicates improvements but continues to reflect cash generation difficulties. The company needs to address profitability and operational efficiency to improve its financial health.Income Statement
Powerfleet's income statement reveals a challenging financial position. Despite stable gross profit margins around 50%, the company struggles with negative net profit margins, which deteriorated from -4.97% in 2022 to -25.47% in 2023. Revenue decreased by 1.6% in 2023, indicating a downward trend. Additionally, EBIT and EBITDA margins are negative, demonstrating operational inefficiencies and profitability challenges.45
Neutral
Balance Sheet
The balance sheet shows a mixed picture. The debt-to-equity ratio increased significantly from 0.21 in 2022 to 0.96 in 2023, highlighting increased leverage. However, the company maintains a solid equity ratio of 41.7% in 2023, which suggests a stable capital structure. Return on equity is negative due to consistent net losses, indicating inefficiency in using shareholders' capital.55
Neutral
Cash Flow
Cash flow metrics indicate moderate risk. Operating cash flow improved in 2023 but remains low compared to net income, with a ratio of 0.13. Free cash flow is negative, although it improved from -$4.98 million in 2022 to -$2.70 million in 2023. The free cash flow to net income ratio is unfavorable due to persistent net losses, suggesting cash generation challenges.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 144.17M | 133.74M | 135.16M | 126.21M | 113.59M | 81.92M | Gross Profit |
| 74.14M | 67.08M | 64.17M | 60.18M | 59.02M | 38.36M | EBIT |
| -25.36M | -12.33M | -7.70M | -7.92M | -3.50M | -3.25M | EBITDA |
| -22.10M | -75.00K | 563.00K | 631.00K | 4.92M | 98.00K | Net Income Common Stockholders |
| -30.81M | -5.67M | -7.00M | -13.29M | -9.01M | -10.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 35.19M | 19.33M | 17.68M | 26.45M | 18.13M | 16.39M | Total Assets |
| 71.05M | 217.75M | 217.44M | 229.87M | 208.41M | 225.51M | Total Debt |
| 9.45M | 27.50M | 29.78M | 34.23M | 38.56M | 42.13M | Net Debt |
| 3.47M | 8.17M | 12.10M | 7.78M | 20.44M | 25.73M | Total Liabilities |
| 18.73M | 79.83M | 77.06M | 85.01M | 77.52M | 93.94M | Stockholders Equity |
| 52.32M | 137.82M | 140.30M | 144.77M | 130.81M | 131.58M |
| Cash Flow | Free Cash Flow | ||||
| -13.45M | -2.70M | -4.98M | -8.42M | 5.47M | -8.31M | Operating Cash Flow |
| -4.56M | 4.40M | 757.00K | -5.02M | 8.85M | -7.27M | Investing Cash Flow |
| 16.33M | 1.53M | -5.84M | -3.40M | -3.30M | -65.48M | Financing Cash Flow |
| -92.11M | -3.71M | -282.00K | 16.21M | -3.95M | 78.64M |
Powerfleet Technical Analysis
Neutral
5.13
Price Trends
5.96
Negative
6.23
Negative
5.66
Negative
Market Momentum
-0.30
Negative
49.31
Neutral
61.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIOT, the sentiment is Neutral. The current price of 5.13 is above the 20-day moving average (MA) of 4.94, below the 50-day MA of 5.96, and below the 200-day MA of 5.66, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 61.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AIOT.
Powerfleet Risk Analysis
Powerfleet disclosed 53 risk factors in its most recent earnings report. Powerfleet 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
Powerfleet Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $663.45M | 12.37 | 29.83% | 4.83% | 5.09% | 12.45% | |
67 Neutral | $1.01B | 17.28 | 6.35% | ― | -0.13% | 263.78% | |
64 Neutral | $899.83M | 161.75 | 2.01% | ― | 5.20% | ― | |
59 Neutral | $10.59B | 10.09 | -6.37% | 3.05% | 7.44% | -10.67% | |
55 Neutral | $606.89M | ― | -20.95% | ― | 67.20% | -165.24% | |
52 Neutral | $645.58M | 57.73 | 2.30% | ― | -8.65% | ― | |
48 Neutral | $685.07M | ― | -7.73% | ― | -36.86% | -351.11% |
* Technology Sector Average
Performance Comparison
AIOT
Powerfleet
5.13
0.80
18.48%
COHU
Cohu
16.85
-13.99
-45.36%
ITRN
Ituran Location And Control
34.79
10.51
43.29%
NTGR
Netgear
22.43
7.61
51.35%
RDWR
Radware
23.07
5.87
34.13%
VRNT
Verint Systems
17.96
-12.24
-40.53%
Powerfleet Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: -13.78% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with significant revenue and EBITDA growth, successful cost synergies, and major new deals. However, there were notable one-time costs, an increase in sales expenses, and a net loss reported. Overall, the highlights significantly outweigh the lowlights, indicating a positive outlook.Highlights
Significant Revenue Growth
Quarterly revenue in Q3 reached $106 million, a $33 million increase, representing a 45% growth year-over-year.
Strong Adjusted EBITDA Growth
Adjusted EBITDA came in at $22 million, a $10 million increase year-over-year, reflecting a 77% growth rate.
Cost Synergy Achievements
An exceptional $15 million in annualized savings secured, with a plan to exceed $60 million by year-end.
Major New Deals
Secured a major deal in North America for in-warehouse solutions with a large beverage company, with a potential $25 million to $30 million total contract value.
AI Camera Solution Growth
Fleet Complete’s AI camera solution sales volumes up 52% year-over-year through its largest telco partner.
Expansion of R&D Team
R&D team expanded from 85 to 400 engineers, enabling accelerated execution of the Unity product roadmap.
Increased Fiscal Year Guidance
Annual revenue expected to exceed $362.5 million, up from prior guidance of $352.5 million. Annual EBITDA expected to exceed $75 million, up from $72.5 million.
Lowlights
One-time Expenses Impact
This quarter included $6.7 million in one-time costs for transactions and restructuring.
Net Loss Reported
Net loss attributable to common stockholders was $14.3 million, or $0.11 per basic and diluted share.
Sales and Marketing Expense Increase
Sales and marketing expenses rose to 15.9% of revenue, up from 12.2% in the prior year.
Discontinuation of Non-core Business
Decision to discontinue support for an end-of-life ELD business, although with an immaterial impact on total revenue.
Company Guidance
During the PowerFleet's Third Quarter 2025 earnings call, held on February 10, 2025, the company provided robust guidance for the upcoming quarters. PowerFleet reported a 45% year-over-year increase in quarterly revenue, reaching $106 million, with service revenues making up 77% of total revenue. Adjusted EBITDA rose by 77% to $22 million, with an annual run rate surpassing $85 million. The company achieved $15 million in annualized cost synergies and aims to realize an additional $21 million over the next 18 months. PowerFleet raised its fiscal 2025 guidance, projecting annual revenue to exceed $362.5 million and EBITDA to surpass $75 million. The call highlighted strategic initiatives, including significant wins such as a large deal with a global beverage company and expanded opportunities through partnerships with AT&T and Telus. The company is focused on leveraging its Unity platform and AI video solutions to drive further growth and market penetration.Powerfleet Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Powerfleet’s Leadership Change and Innovation Strategy
Positive
Jan 7, 2025
Powerfleet announced the appointment of Mike Powell as Chief Innovation Officer, following the resignation of Chief Technology Officer Jim Zeitunian. Powell, who has a robust background in digital transformation and AI-driven growth, is expected to enhance Powerfleet’s innovation strategy and internal operations. His expertise will be critical in advancing the company’s Unity AIoT ecosystem and driving customer-centric solutions, marking a significant step in Powerfleet’s digital transformation journey.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.