Inseego (INSG) AI Stock Analysis

• Market Cap: $109.40M
• Dividend Yield: N/A
• Average Volume (3M): 111.53K
• Price to Earnings (P/E): 124.6
• Beta (1Y): 2.22
• Revenue Growth: 5.41%
• EPS Growth: N/A
• Country: US
• Employees: 218
• Sector: Technology
• Sector Strength: 45
• Industry: Communication Equipment
• EPS (TTM): 0.06
• Shares Outstanding: 15,006,340
• 10 Day Avg. Volume: 110,348
• 30 Day Avg. Volume: 111,534
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.73
• Price to Cash Flow (P/CF): -3.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.50
• Price Target Upside: 71.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Inseego's overall stock score reflects significant challenges in financial stability and valuation concerns, offset somewhat by strategic initiatives and debt restructuring efforts. The technical indicators point to a bearish outlook, and while recent corporate changes are promising, the immediate financial risks remain a concern.

Positive Factors

Financial Performance

Inseego exceeded expectations, driven by strong mobile solutions and stable, high-margin services.

Financial Strategy

Efforts to restore operations and fix the balance sheet have been outstanding.

Leadership

Announces new CEO, Juho Sarvikas, who served most recently as Qualcomm’s VP and President of North America, bringing strong leadership and highly relevant experience.

Negative Factors

EBITDA Impact

The sale of the non-core Telematics business negatively impacts annual EBITDA by $8-10M.

Revenue Guidance

A soft 4Q revenue guide heightens concerns around the outlook for growth over the mid-to-longer term.

Inseego Business Overview & Revenue Model

Company Description

Inseego Corp. engages in the design and development of fixed and mobile wireless solutions, industrial Internet of Things (IIoT), and cloud solutions for large enterprise verticals, service providers, small and medium-sized businesses, governments, and consumers worldwide. The company provides wireless 4G and 5G hardware products, including private LTE/5G networks, First responders network authority/Firstnet, SD-WAN, telematics, remote monitoring and surveillance, and fixed wireless access and mobile broadband devices. Its products include 4G and 5G fixed wireless routers and gateways, mobile hotspots, and wireless gateways and routers for IIoT applications; and Gb speed 4G LTE hotspots and USB modems, integrated telematics, and mobile tracking hardware devices, which are supported by applications software and cloud services designed to enable customers to analyze data insights and configure/manage their hardware remotely. In addition, the company sells software-as-a-service (SaaS), software, and services solutions in various mobile and IIoT vertical markets comprising fleet management, vehicle telematics, stolen vehicle recovery, asset tracking, monitoring, business connectivity, and subscription management. Its SaaS delivery platforms include telematics, asset tracking, and management platforms which provide fleet, vehicle, aviation, asset, and other telematics applications; and Inseego Subscribe, a hosted SaaS platform that helps organizations in managing the selection, deployment, and spend of their customers wireless assets by helping them to save money on personnel and telecom expenses. Inseego Corp. was founded in 1996 and is based in San Diego, California.

How the Company Makes Money

Inseego generates revenue through the sale of its wireless connectivity products, including mobile hotspots, routers, and modems that support 5G and 4G LTE networks. The company also earns money from its enterprise software solutions, which offer device management and IoT solutions on a subscription basis. Additionally, Inseego engages in strategic partnerships with telecommunications companies and service providers to expand its market reach and enhance its product offerings. These collaborations often involve co-development and co-marketing arrangements, contributing significantly to the company's revenue.

Inseego Financial Statement Overview

Summary

Inseego faces financial challenges with declining revenues and negative net profit margins, despite an improvement in cash flow. The company's negative equity and high leverage highlight significant risks.

Income Statement

Inseego's revenue has shown a declining trend over the years, with a revenue decrease of 2.27% from 2022 to 2023 and a further decline of 2.27% from 2023 to 2024. The company has struggled with profitability, as indicated by negative net profit margins across multiple years. For 2024, the net profit margin is -7.51%, and the gross profit margin is 35.96%, showing moderate profitability at the gross level but significant challenges in achieving net profitability. EBIT margin improved to 0.90% in 2024, but historical negative figures highlight ongoing challenges in efficient operations.

Balance Sheet

Inseego's balance sheet shows a significant negative stockholders' equity of -$12.86 million in 2024, indicating more liabilities than assets. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt of $59.36 million suggests considerable leverage. The equity ratio is also negative, further pointing to financial instability and potential risk in meeting long-term obligations.

Cash Flow

The free cash flow has improved significantly from -$3.00 million in 2023 to $33.42 million in 2024, indicating positive cash flow management. The operating cash flow to net income ratio is 2.33, suggesting strong cash flow relative to reported net income losses. However, historical negative cash flows pose concerns about sustainability in cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
191.24M	195.69M	245.32M	262.40M	313.83M
	Gross Profit
68.80M	52.45M	66.91M	75.92M	90.84M
	EBIT
1.72M	-36.28M	-54.90M	-45.32M	-22.73M
	EBITDA
9.76M	-13.71M	-32.62M	-15.52M	-72.55M
	Net Income Common Stockholders
-14.37M	-46.19M	-67.97M	-47.91M	-111.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.60M	7.52M	7.14M	46.47M	40.02M
	Total Assets
100.00M	121.80M	159.02M	215.84M	227.39M
	Total Debt
59.36M	170.73M	167.10M	157.87M	165.15M
	Net Debt
19.77M	163.21M	159.96M	111.39M	125.13M
	Total Liabilities
112.86M	223.90M	229.13M	240.70M	255.29M
	Stockholders Equity
-12.86M	-102.11M	-70.12M	-24.85M	-27.81M
Cash Flow		Free Cash Flow
33.42M	-3.00M	-46.61M	-54.05M	-15.05M
	Operating Cash Flow
33.52M	7.17M	-33.29M	-25.21M	20.05M
	Investing Cash Flow
43.03M	-10.17M	-13.32M	6.08M	-34.71M
	Financing Cash Flow
-38.78M	2.21M	5.43M	29.92M	42.08M

Inseego Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSG, the sentiment is Negative. The current price of 7.29 is below the 20-day moving average (MA) of 7.97, below the 50-day MA of 9.71, and below the 200-day MA of 12.52, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 36.14 is Neutral, neither overbought nor oversold. The STOCH value of 66.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INSG.

Inseego Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKTI	73 Outperform	$153.89M	19.44	32.69%	―	3.37%	―
Sector *	58 Neutral	$10.03B	10.00	-6.85%	3.09%	7.49%	-11.58%
LTRX	54 Neutral	$79.52M	―	-6.35%	―	12.96%	48.58%
SILC	54 Neutral	$78.65M	―	-8.70%	―	-53.18%	49.22%
KVHI	50 Neutral	$99.81M	―	-7.73%	―	-14.33%	29.34%
INSG	48 Neutral	$109.40M	124.62	111.75%	―	5.41%	―
ONDS	45 Neutral	$113.41M	―	-152.89%	―	-54.16%	31.61%

Inseego Corporate Events

Inseego Announces Leadership Changes and Strategic Transition

On February 5, 2025, Inseego Corp. announced the departure of Phil Brace from the role of Executive Chairman of the Board of Directors to become CEO of Skyworks Solutions, Inc. Under Brace’s leadership, Inseego underwent significant transformations, including restructuring its capital, divesting non-core businesses, and appointing a new CEO, Juho Sarvikas. Jeff Tuder was appointed as the new independent Chairman of the Board. This transition is expected to further strengthen Inseego’s position in the wireless market and drive future growth, with no changes to the company’s financial guidance for Q4 2024.