Identiv (INVE) AI Stock Analysis

• Market Cap: $82.43M
• Dividend Yield: N/A
• Average Volume (3M): 53.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: -66.00%
• EPS Growth: 28.84%
• Country: US
• Employees: 166
• Sector: Industrials
• Sector Strength: 72
• Industry: Computer Hardware
• EPS (TTM): -0.15
• Shares Outstanding: 23,754,389
• 10 Day Avg. Volume: 37,525
• 30 Day Avg. Volume: 53,654
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 3.24
• P/FCF Ratio: -5.10
• Enterprise Value/Market Cap: -0.52
• Enterprise Value/Revenue: -1.95
• Enterprise Value/Gross Profit: 53.33
• Enterprise Value/Ebitda: 2.26
• 1Y Price Target: $5.33
• Price Target Upside: 53.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $3.00 ▼(-13.54% Downside)

Identiv's overall stock score is primarily impacted by weak financial performance and valuation. However, positive developments from the earnings call, such as improved margins and strategic initiatives, provide some optimism. Technical analysis indicates bearish momentum, further weighing on the score.

Positive Factors

Improved Gross Profit Margin

The improvement in gross profit margins indicates better cost management and operational efficiency, enhancing long-term profitability.

Successful Transition to Thailand Facility

The transition to the Thailand facility reduces production costs and increases scalability, supporting future margin growth.

Strategic Partnerships and Innovation

Strategic partnerships and technological innovations enhance market position and drive long-term growth in key sectors.

Negative Factors

Revenue Decline

The decline in revenue due to exiting lower-margin business could impact short-term financial performance and market perception.

Continued Facility Shutdown Costs

Ongoing costs from the Singapore facility shutdown may strain financials, delaying full realization of cost-saving benefits.

Negative Cash Flow

Negative cash flows highlight liquidity issues, potentially limiting investment in growth and operational flexibility.

Identiv Business Overview & Revenue Model

Company Description

Identiv, Inc. operates as a security technology company that secures things, data, and physical places in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Identity and Premises. The Identity segment offers products and solutions that enables secure access to information serving the logical access and cyber security markets, as well as protecting connected objects and information using radio-frequency identification embedded security. The Premises segment provides solutions for premises security market, such as access control, video surveillance, analytics, audio, access readers, and identities to government facilities, schools, utilities, hospitals, stores, apartment buildings, and shops. The company sells its products through dealers, systems integrators, value added resellers, and resellers. The company was formerly known as Identive Group, Inc. and changed its name to Identiv, Inc. in May 2014. Identiv, Inc. was founded in 1990 and is headquartered in Fremont, California.

How the Company Makes Money

Identiv generates revenue through multiple streams, primarily from the sale of hardware products, software solutions, and services related to security and identity management. Key revenue streams include the sale of access control systems, RFID tags, and readers, as well as software that enables secure credentialing and management of identities. The company also earns income from service contracts and maintenance agreements associated with its products. Additionally, Identiv has established significant partnerships with technology firms and integrators, which help to expand its market reach and enhance its product offerings, contributing to its overall earnings.

Identiv Financial Statement Overview

Summary

Identiv's financial performance is challenged by a negative gross profit margin and a substantial net loss, indicating struggles with profitability. Revenue has declined by 6.47%, and cash flow management is weak, impacting liquidity. Despite a stable capital structure with low leverage, strategic improvements are essential to enhance profitability and operational efficiency.

Income Statement

Identiv's income statement reveals significant challenges. The TTM data shows a negative gross profit margin and a substantial net loss, indicating struggles with profitability. Revenue has declined by 6.47% compared to the previous period, reflecting a downward trend. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies. Overall, the income statement suggests financial instability and a need for strategic improvements.

Balance Sheet

The balance sheet presents a mixed picture. The company maintains a low debt-to-equity ratio, indicating conservative leverage and financial stability. However, the return on equity is low, suggesting limited profitability from shareholders' investments. The equity ratio is healthy, reflecting a strong capital structure. While the balance sheet is stable, the low profitability metrics indicate room for improvement.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating liquidity challenges. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income into cash. Although the free cash flow to net income ratio is positive, overall cash flow management appears weak, necessitating better cash generation strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.02M	26.63M	43.45M	112.92M	103.77M	86.92M
Gross Profit	-803.00K	340.00K	6.01M	40.94M	37.07M	33.68M
EBITDA	-18.96M	-24.55M	-10.65M	2.12M	4.10M	-257.00K
Net Income	-14.64M	74.82M	-5.49M	-392.00K	1.62M	-5.11M
Balance Sheet
Total Assets	151.02M	163.22M	112.95M	102.77M	96.66M	78.68M
Cash, Cash Equivalents and Short-Term Investments	126.27M	135.65M	23.31M	16.65M	28.55M	11.41M
Total Debt	1.46M	2.02M	12.24M	4.56M	2.21M	23.64M
Total Liabilities	7.36M	9.16M	38.68M	27.37M	22.15M	44.49M
Stockholders Equity	143.66M	154.07M	74.27M	75.39M	74.51M	34.19M
Cash Flow
Free Cash Flow	-17.24M	-16.93M	-3.13M	-11.71M	-859.00K	-3.33M
Operating Cash Flow	-15.65M	-15.43M	1.16M	-7.81M	1.23M	-1.77M
Investing Cash Flow	-1.64M	141.49M	-4.15M	-3.87M	-1.48M	-1.56M
Financing Cash Flow	-2.32M	-13.63M	10.07M	-1.04M	19.34M	4.85M

Identiv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.47
• 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 INVE, the sentiment is Negative. The current price of 3.47 is below the 20-day moving average (MA) of 3.52, below the 50-day MA of 3.54, and below the 200-day MA of 3.47, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 24.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INVE.

Identiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OSS	60 Neutral	$286.59M	-33.45	-24.26%	―	14.33%	36.97%
ALOT	51 Neutral	$71.57M	-4.28	-19.92%	―	-2.07%	-535.26%
TACT	51 Neutral	$42.78M	-5.00	-23.00%	―	8.27%	-308.63%
UAVS	49 Neutral	$73.60M	-0.39	-110.92%	―	-6.34%	98.60%
INVE	47 Neutral	$82.43M	-4.20	-12.36%	―	-66.00%	28.84%
QMCO	44 Neutral	$102.77M	-0.37	―	―	-9.11%	-61.28%