Intrusion (INTZ) AI Stock Analysis

• Market Cap: $19.14M
• Dividend Yield: N/A
• Average Volume (3M): 751.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.16
• Revenue Growth: 2.85%
• EPS Growth: 83.13%
• Country: US
• Employees: 49
• Sector: Technology
• Sector Strength: 45
• Industry: Software
• EPS (TTM): -2.03
• Shares Outstanding: 19,342,775
• 10 Day Avg. Volume: 696,825
• 30 Day Avg. Volume: 751,669
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.32
• Price to Cash Flow (P/CF): -26.90
• 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: $5.50
• Price Target Upside: 461.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Intrusion, Inc. faces significant financial and operational challenges, reflected in its low financial performance and valuation scores. While recent earnings call data show improved financial stability and positive developments, technical indicators suggest bearish sentiment. Despite some promising future outlooks, the company's stock remains under pressure due to profitability concerns and valuation challenges.

Positive Factors

Contracts and Partnerships

Intrusion announced significant contracts including a $5 million contract with a large telecommunications provider and its first major Shield contract with the U.S. government.

Product Offering

Intrusion offers products leveraging a threat intelligence database with data on over 8.5 billion IP addresses, providing a Zero Trust security solution ideal for protecting against advanced cyber threats.

Negative Factors

Revenue Challenges

Investors will continue to question the longer-term revenue opportunity as Shield sales continue to sputter.

Intrusion Business Overview & Revenue Model

Company Description

Intrusion, Inc. engages in the provision of network security solutions. It specializes in the development, and marketing of entity identification, high speed data mining cybercrime and advanced persistent threat detection products. The company supports a range of customers including United States federal government entities, local government, banks, airlines, credit unions, and other financial institutions as well as hospitals, and other healthcare providers by providing products such as TraceCop for identity discovery and disclosure, and Savant for network data mining and advanced persistent threat detection. Intrusion was founded by T. Joe Head and G. Ward Paxton in September 1983 and is headquartered in Richardson, TX.

How the Company Makes Money

Intrusion makes money primarily through the sale of its cybersecurity products and services to businesses and government organizations. The company generates revenue by offering its software solutions on a subscription basis, providing ongoing support and updates to its clients. Additionally, Intrusion may engage in partnerships with other technology firms to enhance its product offerings and expand its customer base. Consulting services related to cybersecurity strategies and implementation may also contribute to the company's earnings, although specific details on consulting revenue are not available.

Intrusion Financial Statement Overview

Summary

Intrusion's financial performance indicates significant operational and profitability challenges, with consistent losses on the income statement and strained cash flows. While the balance sheet shows improved equity and asset growth, the company still faces high leverage risks. Revenue growth remains weak and inconsistent, necessitating strategic initiatives to enhance profitability and stabilize financial health.

Income Statement

Intrusion's income statement reveals significant challenges, with negative EBIT and net income indicating persistent operational losses. The gross profit margin is strong at 76.7%, but net profit margin remains deeply negative. Revenue has declined over the years, with a slight recovery in the most recent year, showing a modest growth rate of 2.85% in 2024. However, the EBIT and EBITDA margins are both negative, reflecting ongoing profitability issues.

Balance Sheet

Intrusion's balance sheet shows improvement with positive stockholders' equity in 2024, compared to negative equity in previous years. The debt-to-equity ratio is 0.44, indicating a lower reliance on debt, but the equity ratio is only 54.3%, suggesting moderate financial stability. The company's total assets have grown, enhancing its asset base, but past high leverage remains a concern.

Cash Flow

The cash flow statement reflects struggles with negative operating and free cash flow, despite an improvement in free cash flow growth. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting earnings to cash. While financing activities have bolstered cash reserves, the reliance on external funding raises sustainability concerns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.36M	5.77M	5.61M	7.53M	7.28M	6.62M
	Gross Profit
4.77M	4.43M	4.35M	4.17M	4.65M	3.91M
	EBIT
-17.89M	-8.45M	-12.05M	-16.28M	-19.50M	-5.43M
	EBITDA
-16.08M	-5.81M	-10.34M	-12.26M	-17.76M	-5.99M
	Net Income Common Stockholders
-17.72M	-7.79M	-13.89M	-14.54M	-18.04M	-6.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.85M	4.85M	139.00K	3.02M	4.10M	16.70M
	Total Assets
11.51M	11.51M	6.25M	9.28M	9.23M	19.88M
	Total Debt
2.73M	2.73M	12.93M	11.32M	3.50M	3.01M
	Net Debt
-2.12M	-2.12M	12.79M	8.30M	-598.00K	-13.70M
	Total Liabilities
5.26M	5.26M	15.80M	13.49M	5.31M	4.22M
	Stockholders Equity
6.25M	6.25M	-9.55M	-4.21M	3.92M	15.66M
Cash Flow		Free Cash Flow
-17.84M	-6.83M	-9.21M	-14.67M	-17.71M	-5.50M
	Operating Cash Flow
-17.11M	-6.29M	-7.77M	-13.19M	-16.56M	-5.18M
	Investing Cash Flow
-733.00K	-1.81M	-1.45M	-1.48M	-1.15M	-320.00K
	Financing Cash Flow
15.52M	12.81M	6.34M	13.58M	5.10M	18.87M

Intrusion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.98
• 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 INTZ, the sentiment is Negative. The current price of 0.98 is below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.89, and below the 200-day MA of 1.21, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 40.45 is Neutral, neither overbought nor oversold. The STOCH value of 51.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INTZ.

Intrusion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHKP	79 Outperform	$24.46B	29.23	30.15%	―	6.22%	6.15%
FTNT	79 Outperform	$75.57B	43.49	338.74%	―	12.27%	54.69%
QLYS	73 Outperform	$4.52B	26.45	41.09%	―	10.40%	14.78%
TENB	63 Neutral	$4.42B	―	-9.73%	―	12.68%	54.80%
Sector *	58 Neutral	$21.35B	9.96	-19.72%	2.38%	5.03%	-22.83%
VRNS	56 Neutral	$4.47B	―	-20.26%	―	10.38%	6.88%
INTZ	39 Underperform	$19.14M	―	-336.97%	―	2.85%	83.13%

Intrusion Corporate Events

Intrusion Strengthens Financial Position with Restructuring

On January 15, 2025, Intrusion Inc. announced an update regarding its financial position, highlighting actions that resulted in $14.5 million in proceeds and the elimination of $10.1 million of Series A Preferred Stock. This financial restructuring ensures the company has sufficient capital to operate through 2025 without raising additional funds. The improved balance sheet allows Intrusion to focus on expanding its customer base and pursuing sustainable growth, as stated by CEO Tony Scott.

Intrusion Secures $7.5M to Bolster Cybersecurity Position

Intrusion Inc. has announced a $7.5 million registered direct offering through an agreement with a single institutional investor, involving the sale of common stock and prefunded warrants. The proceeds from this offering, along with recent financial strategies, are expected to provide sufficient capital for the company to operate through fiscal year 2025, eliminating the need for additional fundraising in 2025 and strengthening its market position in cybersecurity.

Intrusion Boosts Liquidity with Stock Exchange Deal

Intrusion, Inc. has entered into several privately-negotiated agreements with Streeterville Capital, LLC to exchange a total of 9,275 shares of its Series A Preferred Stock for common stock. These exchanges, which have a combined fair value of approximately $9,753,700, are executed under the exemption from registration requirements pursuant to Section 3(a)(9) of the Securities Act of 1933. This strategic move increases the company’s common shares outstanding to 16,885,394, potentially enhancing liquidity and market positioning.