Inseego (INSG) AI Stock Analysis

• Market Cap: $110.01M
• Dividend Yield: N/A
• Average Volume (3M): 118.30K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 2.06
• Revenue Growth: 1.60%
• EPS Growth: N/A
• Country: US
• Employees: 218
• Sector: Technology
• Sector Strength: 82
• Industry: Communication Equipment
• EPS (TTM): <0.01
• Shares Outstanding: 15,007,562
• 10 Day Avg. Volume: 104,514
• 30 Day Avg. Volume: 118,295
• PEG Ratio: -0.04
• Price to Book (P/B): -1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.94
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 95.17
• 1Y Price Target: $11.50
• Price Target Upside: 56.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: $8.50 ▲(15.65%Upside)

Inseego's overall score is primarily constrained by its financial performance, which shows significant challenges. While technical analysis and valuation offer a mixed outlook, recent earnings call insights and corporate events provide some optimism for future improvements.

Positive Factors

Financial Performance

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

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.

Strategic Focus

CEO Juho Sarvikas' strategic focus on SaaS and FWA growth strengthens long-term value proposition.

Negative Factors

FWA Performance

FWA headwinds from customer inventory management offset strong performance.

Market Pressure

Lowering estimates driven by pressure in Mobile from concentrated carrier exposure.

Strategy Execution

Strategy execution still unproven, leading to a more modest ramp ahead than prior expectation.

Inseego Business Overview & Revenue Model

Company Description

Inseego Corp. (INSG) is a leading provider of 5G and intelligent IoT device-to-cloud solutions. The company operates primarily in the telecommunications and technology sectors, offering a range of products including mobile hotspots, fixed wireless access solutions, and IoT solutions that enhance connectivity for enterprises, service providers, and consumers. Inseego's products are designed to provide secure and reliable internet access, enabling advanced communications and improved productivity across various industries.

How the Company Makes Money

Inseego makes money through the sale of its hardware and software solutions, primarily focusing on wireless connectivity devices such as mobile hotspots, routers, and gateways. Revenue is generated from both direct sales to consumers and businesses as well as through partnerships with telecommunications carriers who bundle Inseego's devices with their service offerings. Additionally, Inseego offers subscription-based cloud management services for IoT solutions, providing ongoing revenue from software and data management services. Strategic partnerships with major carriers and technology companies are significant contributors to its earnings, enhancing its market reach and facilitating large-scale deployments of its solutions.

Inseego Financial Statement Overview

Summary

Inseego's financial performance is challenged by declining revenues, negative stockholders' equity, and a negative EBITDA margin. Despite some positives in cash flow management, the company's financial leverage and solvency issues are concerning.

Income Statement

Inseego's TTM revenue showed a slight increase compared to the previous year, with a Gross Profit Margin of 38.74% and a Net Profit Margin of 3.42%. However, the company has experienced declining revenues over the past few years. Despite a positive EBIT Margin of 2.45%, the EBITDA Margin is negative, indicating challenges in covering depreciation and amortization costs.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, leading to an undefined Debt-to-Equity Ratio. This suggests significant financial leverage and potential solvency issues. The Equity Ratio is negative, reflecting the company's heavy reliance on debt financing.

Cash Flow

Despite operating cash flow covering net income with a ratio of 3.87, the Free Cash Flow Growth Rate shows a decline compared to the previous year. The Free Cash Flow to Net Income Ratio is positive at 3.18, indicating some ability to reinvest in the business. However, cash flow fluctuations present challenges.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
192.94M	191.24M	195.69M	245.32M	262.40M	313.83M
	Gross Profit
74.77M	68.80M	52.45M	66.91M	75.92M	90.84M
	EBIT
4.73M	1.72M	-36.28M	-54.90M	-45.32M	-22.73M
	EBITDA
-802.00K	9.76M	-13.71M	-32.62M	-15.52M	-72.55M
	Net Income Common Stockholders
6.59M	4.57M	-46.19M	-67.97M	-47.91M	-111.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.15M	39.60M	7.52M	7.14M	46.47M	40.02M
	Total Assets
93.00M	100.00M	121.80M	159.02M	215.84M	227.39M
	Total Debt
58.98M	60.71M	170.73M	167.10M	157.87M	165.15M
	Net Debt
23.83M	21.11M	163.21M	159.96M	111.39M	125.13M
	Total Liabilities
105.99M	112.86M	223.90M	229.13M	240.70M	255.29M
	Stockholders Equity
-12.99M	-12.86M	-102.11M	-70.12M	-24.85M	-27.81M
Cash Flow		Free Cash Flow
20.99M	33.42M	-3.00M	-46.61M	-54.05M	-15.05M
	Operating Cash Flow
25.51M	33.52M	7.17M	-33.29M	-25.21M	20.05M
	Investing Cash Flow
42.59M	43.03M	-10.17M	-13.32M	6.08M	-34.71M
	Financing Cash Flow
-39.32M	-38.78M	2.21M	5.43M	29.92M	42.08M

Inseego Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 7.35 is below the 20-day moving average (MA) of 7.87, below the 50-day MA of 7.81, and below the 200-day MA of 11.99, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 28.06 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	78 Outperform	$157.30M	16.50	36.41%	―	5.18%	―
LTRX	64 Neutral	$91.78M	―	-10.88%	―	-2.06%	-22.58%
SILC	63 Neutral	$87.73M	―	-8.55%	―	-42.62%	61.22%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
ONDS	58 Neutral	$231.59M	―	-157.00%	―	-21.17%	23.22%
INSG	56 Neutral	$110.01M	21.76	111.75%	―	1.60%	―
KVHI	55 Neutral	$101.72M	―	-6.78%	―	-14.38%	49.11%

Inseego Corporate Events

Inseego Expands Board with New Director Appointment

On April 30, 2025, Inseego Corp. expanded its board of directors from five to six members by appointing George Mulhern as a non-employee director. Mulhern, recognized for his extensive experience in the wireless technology sector, is expected to bring strategic and operational insights to Inseego, leveraging his previous success in growing Cradlepoint’s revenue and leading its acquisition by Ericsson. This appointment aligns with Inseego’s strategic goals to capitalize on market opportunities as a leading U.S.-based supplier of wireless broadband solutions.

Inseego Completes Major Debt Reduction Initiative

On May 1, 2025, Inseego Corp. announced the completion of a significant capital structure management initiative by paying off approximately $15 million in convertible notes due in 2025. This milestone is part of a broader effort to reduce the company’s total debt by over $100 million in the past year, positioning Inseego on solid financial footing for future growth. The company reported no changes to its financial guidance for the first quarter of 2025 and plans to release its financial results on May 8, 2025.