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Identive Group (INVE)
:INVE
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Identiv
(NASDAQ:INVE)
56Neutral
Positive Factors
Financial Stability
Identiv has a strong balance sheet with $145.7M in cash and no debt, indicating financial stability.
Growth Opportunities
Identiv remained bullish on organic and inorganic growth opportunities and was optimistic about its position within RFID, NFC, HF, and BLE technology.
Negative Factors
Manufacturing Transition
The manufacturing transition from Singapore and Thailand remains largely on track, with expectations to reach full productivity in Thailand soon.
Identiv (INVE) vs. S&P 500 (SPY)
Market Cap
$82.40M
Dividend YieldN/A
Average Volume (3M)61.07K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-44.37%
EPS Growth-447.26%
CountryUS
Employees394
SectorTechnology
Sector Strength45
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-1.25
Shares Outstanding23,885,181
10 Day Avg. Volume109,111
30 Day Avg. Volume61,069
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.27
Price to Cash Flow (P/CF)-2.90
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
$6.00Price Target Upside82.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Identiv Business Overview & Revenue Model
Company DescriptionIdentiv, Inc. engages in the provision of physical security and secure identification products. It operates through the Premises and Identity segments. The Premises segment offers solutions to address the premises security market for government and enterprise, including access control, video surveillance, analytics, customer experience, and other applications. The Identity segment consists of products and solutions enabling secure access to information serving the logical access and cyber security market and protecting assets and objects in the Internet of Things with radio frequency identification. The company was founded in 1990 and is headquartered in Fremont, CA.
How the Company Makes MoneyIdentiv generates revenue through the sale of its security and identification products and services. The company's primary revenue streams include the sales of RFID and NFC systems, which are used in applications like logistics, asset tracking, and consumer engagement. Additionally, Identiv earns income from its access control systems and smart card readers, catering to organizations that require secure and scalable access management solutions. The company benefits from strategic partnerships with technology providers and system integrators, which help expand its market reach and drive sales. Revenue is also supported by recurring service contracts and software subscriptions associated with its security solutions, providing a steady stream of income.
Identiv Financial Statement Overview
Summary
Identiv shows revenue growth but faces significant profitability and cash flow challenges. The balance sheet indicates financial stability with low leverage, yet negative cash flows and operational losses highlight the need for strategic improvements.Income Statement
The company has shown some growth in revenue over the years, with a notable increase in TTM revenue compared to previous years. However, profitability metrics like EBIT and EBITDA margins are negative, indicating ongoing operational challenges. The net profit margin is skewed by an unusual net income figure in the TTM period, likely due to non-operational factors.45
Neutral
Balance Sheet
Identiv maintains a strong equity position with a low debt-to-equity ratio due to minimal total debt and substantial stockholders' equity. The equity ratio indicates a healthy balance between equity and assets, providing financial stability. However, the company's total liabilities have fluctuated over the years, which may pose potential risks if not managed properly.70
Positive
Cash Flow
The cash flow analysis reflects inconsistent free cash flow performance, with negative free cash flows in recent periods. The operating cash flow to net income ratio is also negative, highlighting challenges in converting income into cash flow. The significant positive investing cash flow in the TTM period suggests asset divestiture or investment changes rather than operational improvements.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 64.75M | 116.38M | 112.92M | 103.77M | 86.92M | 83.75M | Gross Profit |
| 19.14M | 42.16M | 40.94M | 37.07M | 33.68M | 36.65M | EBIT |
| -21.74M | -4.34M | -131.00K | -530.00K | -1.99M | -3.13M | EBITDA |
| -19.63M | -2.17M | 2.12M | 4.10M | -257.00K | 3.67M | Net Income Common Stockholders |
| 73.57M | -5.49M | -392.00K | 1.62M | -5.11M | -1.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.87M | 23.31M | 16.65M | 28.55M | 11.41M | 9.38M | Total Assets |
| 66.31M | 109.72M | 102.77M | 96.66M | 78.68M | 74.32M | Total Debt |
| 2.00M | 15.38M | 4.56M | 2.21M | 3.55M | 4.83M | Net Debt |
| -8.87M | -7.93M | -12.09M | -26.35M | -7.86M | -4.56M | Total Liabilities |
| 32.61M | 35.45M | 27.37M | 22.15M | 44.49M | 38.85M | Stockholders Equity |
| 33.70M | 74.27M | 75.39M | 74.51M | 34.19M | 35.47M |
| Cash Flow | Free Cash Flow | ||||
| -6.76M | -3.13M | -11.71M | -859.00K | -3.33M | 138.00K | Operating Cash Flow |
| -4.74M | 1.16M | -7.81M | 1.23M | -1.77M | 427.00K | Investing Cash Flow |
| 141.38M | -4.15M | -3.87M | -1.48M | -1.56M | -1.48M | Financing Cash Flow |
| -12.10M | 10.07M | -1.04M | 19.34M | 4.85M | -227.00K |
Identiv Technical Analysis
Negative
3.29
Price Trends
3.58
Negative
3.68
Negative
3.74
Negative
Market Momentum
-0.07
Positive
42.54
Neutral
31.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVE, the sentiment is Negative. The current price of 3.29 is below the 20-day moving average (MA) of 3.50, below the 50-day MA of 3.58, and below the 200-day MA of 3.74, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 31.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INVE.
Identiv Risk Analysis
Identiv disclosed 41 risk factors in its most recent earnings report. Identiv 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
Identiv Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $2.70B | 69.46 | 44.39% | ― | 19.04% | ― | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% | |
56 Neutral | $82.40M | ― | -25.33% | ― | -44.37% | -447.26% | |
55 Neutral | $678.81M | ― | -123.20% | ― | -19.70% | -70.40% | |
54 Neutral | $1.25B | ― | -8.49% | ― | 19.02% | 76.67% | |
47 Neutral | $72.50M | ― | -5.86% | ― | 15.24% | 21.83% | |
44 Neutral | $139.71M | 159.15 | 111.75% | ― | 5.41% | ― |
* Technology Sector Average
Performance Comparison
INVE
Identiv
3.29
-4.31
-56.71%
ADTN
Adtran
8.98
3.54
65.07%
AXTI
AXT
1.60
-2.97
-64.99%
VSAT
ViaSat
9.40
-7.60
-44.71%
PI
IMPINJ
91.16
-33.43
-26.83%
INSG
Inseego
9.54
6.75
241.94%
Identiv Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -5.19% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. Identiv successfully transitioned to a more focused business model and established strong partnerships, while also facing significant challenges with declining revenues, increased losses, and gross margin issues due to production transitions.Highlights
Strategic Transition to Pure-Play IoT Solutions
Identiv successfully transitioned to a pure-play provider of specialty RFID and Bluetooth Low Energy (BLE) solutions, following the sale of its physical security business. This move has significantly strengthened its financial position.
Significant Production Transition
75% of RFID production transitioned from Singapore to a low-cost facility in Thailand by year-end, with expectations to complete the transition by the end of Q2 2025, which is anticipated to improve gross margins.
Partnership with Novanta
A strategic partnership with Novanta was announced to offer comprehensive consumable authentication solutions to medical device and diagnostic OEMs, enhancing product safety and accuracy.
Revenue Above Guidance
Fourth quarter 2024 revenue was $6.7 million, exceeding the midpoint of the previously announced outlook by approximately $600,000.
Strong Cash Position
Exited Q4 2024 with $135.9 million in cash and cash equivalents and restricted cash, an increase of $111 million since December 31, 2023.
Lowlights
Decline in Gross Margins
Fourth quarter GAAP and non-GAAP gross margin was negative 14.9% and negative 5.2%, respectively, impacted by decreased utilization and transition costs to Thailand.
Increased Net Loss
Fourth quarter GAAP net loss from continuing operations was $4.3 million, compared to $3.3 million in the fourth quarter of 2023.
Decrease in Annual Revenue
Fiscal year 2024 revenue was $26.6 million, a decrease of $16.8 million compared to the prior year, primarily due to lower sales of BLE transponder and mobile products.
Increased Operating Expenses
Fiscal year 2024 GAAP operating expenses totaled $28.3 million, an increase from $19.5 million in fiscal year 2023, due to strategic transaction-related costs and stock-based compensation.
Company Guidance
During Identiv's fourth quarter and fiscal year 2024 earnings call, the company outlined its strategic focus following the divestiture of its physical security business, emphasizing its commitment to becoming a leading provider of specialty RFID and Bluetooth Low Energy (BLE) solutions. The transition of production from Singapore to a low-cost facility in Thailand was highlighted, with 75% of production already shifted, aiming for a long-term non-GAAP gross margin target of 35%. The company reported fourth quarter revenue of $6.7 million and a non-GAAP gross margin of negative 5.2%, impacted by the production transition. Fiscal year revenue was $26.6 million, with a non-GAAP gross margin of 8%. Operating expenses were tightly controlled, with non-GAAP operating expenses totaling $17.9 million for the year. The call also detailed new product developments and strategic partnerships, including a collaboration with Novanta in the healthcare sector, as well as plans to expand the company's commercial reach under new leadership. Identiv is committed to its perform, accelerate, transform (PAT) framework, focusing on high-value healthcare and consumer applications to drive growth and improve financial performance.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.