Powerfleet (AIOT) AI Stock Analysis

• Market Cap: $717.30M
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.63
• Revenue Growth: 92.56%
• EPS Growth: 85.10%
• Country: US
• Employees: 1,954
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.03
• Shares Outstanding: 133,824,620
• 10 Day Avg. Volume: 1,288,781
• 30 Day Avg. Volume: 1,408,777
• PEG Ratio: 1.05
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.82
• P/FCF Ratio: -17.72
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 4.48
• Enterprise Value/Ebitda: 18.41
• 1Y Price Target: $11.00
• Price Target Upside: 105.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.1
• Revenue Forecast (FY): $440.08M

• Rating: 69 Neutral
• Price Target: $5.50 ▲(2.61% Upside)

Powerfleet's strong revenue growth and strategic initiatives are major positives, supported by bullish technical indicators. However, profitability challenges and a negative P/E ratio weigh on the valuation. The positive earnings call and corporate events further bolster the outlook, leading to a moderately favorable overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and successful execution of strategic initiatives, supporting long-term business expansion.

Strategic Partnerships

These partnerships enhance market reach and provide growth opportunities, reinforcing Powerfleet's competitive position in key sectors.

Improved Margins

Improved margins reflect efficient cost management and value delivery, which can enhance profitability and financial health over time.

Negative Factors

Profitability Challenges

Ongoing profitability issues may strain financial resources and limit reinvestment capacity, impacting long-term growth potential.

Negative Free Cash Flow

Negative free cash flow indicates challenges in converting earnings into cash, potentially affecting liquidity and investment capabilities.

Legacy Revenue Decline

Exiting noncore revenue streams may lead to short-term revenue dips, requiring strategic adjustments to maintain growth momentum.

Powerfleet Business Overview & Revenue Model

Company Description

PowerFleet, 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 Money

Powerfleet generates revenue through a subscription-based model, charging customers for access to its software and analytics platforms. Key revenue streams include recurring subscription fees for its telematics services, hardware sales of IoT devices, and additional fees for premium features and analytics services. The company also benefits from long-term contracts with enterprise clients, providing steady revenue flow. Significant partnerships with telecommunications companies and technology providers further enhance its offerings and market reach, contributing to its financial performance.

Powerfleet Financial Statement Overview

Summary

Powerfleet shows strong revenue growth and a healthy gross profit margin, but faces profitability challenges with negative net income and EBIT margins. The balance sheet indicates reduced leverage and a strong equity position, yet negative return on equity remains a concern. Cash flow analysis reveals positive operating cash flow but negative free cash flow, highlighting difficulties in cash conversion.

Income Statement

Powerfleet shows a positive revenue growth rate of 8.86% TTM, indicating a strong upward trajectory in sales. The gross profit margin is healthy at 54.03%, reflecting efficient cost management. However, the company struggles with profitability, as evidenced by a negative net profit margin of -9.95% and a negative EBIT margin of -2.72%. These figures suggest challenges in controlling operational costs and achieving profitability.

Balance Sheet

The company's debt-to-equity ratio improved significantly to 0.11 TTM from 0.64 previously, indicating reduced leverage and a stronger equity position. However, the return on equity remains negative at -8.57%, highlighting ongoing profitability challenges. The equity ratio is strong, suggesting a solid asset base relative to liabilities.

Cash Flow

Operating cash flow is positive at $14.72 million TTM, showing improvement in cash generation from operations. However, free cash flow is negative at -$10.25 million, with a concerning free cash flow growth rate of -47.37%. The negative free cash flow to net income ratio of -3.24 indicates challenges in converting earnings into cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	393.51M	362.51M	362.51M	135.16M	135.16M	135.16M
Gross Profit	213.67M	194.54M	194.54M	64.17M	64.17M	64.17M
EBITDA	51.94M	56.80M	56.80M	7.83M	7.83M	7.83M
Net Income	-43.02M	-50.99M	-50.99M	-7.00M	-7.00M	-7.00M
Balance Sheet
Total Assets	936.89M	910.07M	308.68M	222.93M	222.93M	222.93M
Cash, Cash Equivalents and Short-Term Investments	27.90M	48.79M	24.35M	24.78M	24.78M	24.78M
Total Debt	288.23M	287.06M	123.47M	27.54M	27.54M	27.54M
Total Liabilities	467.91M	463.33M	179.77M	75.54M	75.54M	75.54M
Stockholders Equity	468.83M	446.59M	128.80M	147.32M	147.32M	147.32M
Cash Flow
Free Cash Flow	-15.81M	-37.13M	-2.70M	-4.98M	-4.98M	-4.98M
Operating Cash Flow	17.69M	-3.35M	4.40M	1.25M	1.25M	1.25M
Investing Cash Flow	-207.39M	-170.60M	1.53M	-6.33M	-6.33M	-6.33M
Financing Cash Flow	134.71M	115.72M	-3.71M	-282.00K	-282.00K	-282.00K

Powerfleet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIOT, the sentiment is Positive. The current price of 5.36 is above the 20-day moving average (MA) of 5.06, above the 50-day MA of 5.05, and above the 200-day MA of 4.95, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 50.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIOT.

Powerfleet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRN	79 Outperform	$857.02M	15.16	28.62%	4.39%	5.20%	9.14%
GILT	70 Outperform	$758.85M	28.95	6.95%	―	29.67%	41.90%
AIOT	69 Neutral	$717.30M	-17.23	-8.98%	―	92.56%	85.10%
AVNW	66 Neutral	$267.92M	20.01	5.24%	―	10.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONDS	54 Neutral	$3.45B	-22.86	-17.04%	―	208.40%	44.60%
CLFD	53 Neutral	$395.52M	-49.29	2.37%	―	-9.94%	30.96%

Powerfleet Corporate Events

Powerfleet Releases Strategic Investor Presentation

On November 14, 2025, Powerfleet, Inc. released an investor presentation on its website, aimed at informing investors, analysts, and other stakeholders. The presentation, which is not incorporated by reference into the company’s official filings, outlines the company’s strategic plans and anticipated financial impacts, including the business combination with MiX Telematics and the acquisition of Fleet Complete. This move is part of Powerfleet’s efforts to enhance its market positioning, although it faces risks such as integration challenges, global economic conditions, and cybersecurity threats.

Powerfleet Raises Full-Year Revenue Guidance

Powerfleet reported a significant increase in its financial performance for the second quarter of fiscal 2026, with total revenue reaching $111.7 million, marking a 45% year-over-year increase. The company achieved strong growth in its AI-powered SaaS solutions, leading to a 7% sequential revenue increase and a 57% rise in services revenue. The company also raised its full-year revenue guidance, reflecting its strong market position and operational momentum.

Powerfleet Amends Facilities Agreement with FirstRand Bank

On October 31, 2025, Powerfleet, Inc. and its subsidiaries entered into a First Amendment and Restatement Agreement with FirstRand Bank Limited to amend their existing Facilities Agreement. This amendment extends the maturity date of the Term A Facility, updates interest rates, and aligns financial covenants with the company’s other debt facilities, potentially enhancing financial flexibility and operational stability.

Powerfleet Holds Annual Stockholders Meeting on Governance

On September 16, 2025, Powerfleet, Inc. held its annual meeting of stockholders where key decisions were made. Stockholders elected five directors to serve until the 2026 annual meeting, ratified Deloitte & Touche as the independent public accounting firm for the fiscal year ending March 31, 2026, and approved an advisory resolution on executive compensation. These decisions are expected to influence the company’s governance and financial oversight in the upcoming year.