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IPOWER (IPW)
NASDAQ:IPW
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IPOWER
(NASDAQ:IPW)
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Rating:53Neutral
Price Target:―
IPOWER's overall stock score of 53 reflects its mixed financial performance, with significant profitability and cash flow challenges offset by recent positive earnings call outcomes. The technical analysis suggests a neutral trend, while the valuation metrics indicate potential overvaluation concerns. The company's efforts to improve revenue and profitability, as highlighted in the earnings call, provide some optimism for future performance.
IPOWER (IPW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.81M
Dividend YieldN/A
Average Volume (3M)1.94M
Price to Earnings (P/E)―
Beta (1Y)2.28
Revenue Growth-17.68%
EPS Growth73.12%
CountryUS
Employees60
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.01
Shares Outstanding31,359,900
10 Day Avg. Volume5,557,423
30 Day Avg. Volume1,939,043
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)2.48
Price to Sales (P/S)0.66
P/FCF Ratio9.26
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit0.65
Enterprise Value/Ebitda19.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
IPOWER Business Overview & Revenue Model
Company DescriptioniPower Inc. (IPW) is a leading online retailer specializing in the provision of hydroponic equipment, supplies, and accessories. The company operates in the e-commerce sector, providing a comprehensive range of products aimed at enabling the efficient cultivation of plants in controlled environments. iPower's core offerings include grow lights, ventilation systems, hydroponic systems, and other essential gardening tools and accessories designed to cater to both commercial and home growers.
How the Company Makes MoneyiPower Inc. generates revenue primarily through the online sales of its extensive array of hydroponic and gardening products. The company's e-commerce platform serves as the main channel for reaching its customer base, which includes both individual horticulture enthusiasts and commercial growers. By leveraging digital marketing strategies and maintaining a robust online presence, iPower attracts and retains customers, thereby facilitating consistent sales growth. Additionally, strategic partnerships with suppliers and manufacturers allow iPower to offer competitive pricing and a diverse product inventory, further enhancing its revenue potential. The company may also explore opportunities for growth through potential expansion into new markets or the introduction of complementary product lines.
IPOWER Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Sep 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong efforts in supply chain diversification and debt reduction, as well as a significant milestone in SuperSuite's revenue contribution. However, the company faced challenges with a decline in total revenue, gross margin, and profitability. While strategic initiatives are promising, the financial declines slightly overshadow the positive developments.Q3-2025 Updates
Positive Updates
SuperSuite Revenue Milestone
SuperSuite now accounts for approximately 20% of iPower's total revenue mix, highlighting the growing demand and adoption of their integrated supply chain offerings.
Operational Efficiency and Debt Reduction
iPower reduced total operating expenses by 15% and decreased total debt by 43% compared to June 30, 2024, showing strong financial management and optimization efforts.
Expansion of Supply Chain and Manufacturing
The company has expanded its supply chain by onboarding U.S.-based suppliers and establishing a manufacturing footprint in Southeast Asia, diversifying risk and improving agility.
Introduction of Made in USA Module
iPower launched the Made in USA module to support domestic manufacturing lines, aligning with global trends towards reshoring for supply chain resilience.
Negative Updates
Revenue Decline
Total revenue for fiscal Q3 2025 was $16.6 million, a decrease from $23.3 million in the previous year, primarily due to lower product sales to the largest channel partner.
Gross Margin Reduction
Gross margin decreased to 43.3% from 47% year-over-year, driven by an increase in services income during the quarter.
Net Loss Reported
iPower reported a net loss of $340,000, or $0.01 per share, compared to a net income of $1 million, or $0.03 per share, in the same period the previous year.
Decrease in Cash and Cash Equivalents
Cash and cash equivalents decreased to $2.2 million as of March 31, 2025, from $7.4 million on June 30, 2024.
Company Guidance
During the fiscal third quarter of 2025, iPower made strategic strides to strengthen its operational foundation amid a cautious demand environment. With total revenue at $16.6 million, down from $23.3 million the previous year, the company attributed this decline to reduced product sales to its largest channel partner, although it saw growth in its SuperSuite supply chain offerings, which now represent 20% of total revenue. Gross profit was $7.2 million with a gross margin at 43.3%, down from 47% a year prior due to increased service income. Operating expenses decreased by 15% to $7.4 million, driven by lower general and administrative costs and reduced selling expenses. Despite a net loss of $340,000, iPower improved its financial stability by reducing total debt by 43% to $3.6 million. The company continues to diversify its supply chain, emphasizing U.S.-based manufacturing and suppliers to enhance agility and reduce geopolitical risks. Looking forward, iPower's disciplined capital allocation and strategic initiatives, including its Made in USA module, aim to bolster long-term growth and market competitiveness.IPOWER Financial Statement Overview
Summary
IPOWER faces profitability and cash flow challenges. The income statement shows a negative net profit margin and declining revenue, while the cash flow statement reveals negative operating cash flow. The balance sheet is stable but highlights significant debt levels.Income Statement
IPOWER demonstrates a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 45.82%, indicating efficiency in cost management. However, the net profit margin is negative at -0.17%, reflecting challenges in achieving profitability. Revenue has decreased compared to annual data, showing a decline from $86.07M to $80.84M, indicating contraction or market challenges. EBIT and EBITDA margins also highlight limited operational efficiency.45
Neutral
Balance Sheet
The balance sheet reveals a high level of debt with a debt-to-equity ratio of 0.44, which is relatively stable. The equity ratio stands at 49.47%, suggesting a balanced asset financing structure. While the return on equity is negative in the TTM at -0.63%, the company maintains a substantial equity base, indicating resilience but with profitability challenges.55
Neutral
Cash Flow
The cash flow statement reflects significant difficulties, with a negative operating cash flow of -$1.39B in the TTM. The free cash flow is also negative, showing challenges in generating cash from operations. The operating and free cash flow to net income ratios are not favorable, indicating potential liquidity issues. The company needs to address cash flow sustainability to improve its financial health.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.11M | 86.07M | 88.90M | 79.42M | 54.08M | 39.94M |
| Gross Profit | 33.28M | 39.25M | 34.80M | 33.20M | 22.82M | 15.13M |
| EBITDA | 1.09M | 1.51M | -12.77M | 3.20M | 2.96M | 0.00 |
| Net Income | -1.49M | -1.53M | -11.97M | 1.52M | -775.75K | 1.99M |
Balance Sheet | ||||||
| Total Assets | 40.51M | 51.30M | 60.09M | 78.58M | 35.64M | 13.67M |
| Cash, Cash Equivalents and Short-Term Investments | 2.19M | 7.38M | 3.74M | 1.82M | 6.65M | 977.63K |
| Total Debt | 8.23M | 12.89M | 20.07M | 26.82M | 2.55M | 2.09M |
| Total Liabilities | 19.79M | 28.28M | 39.23M | 46.18M | 10.65M | 10.74M |
| Stockholders Equity | 20.76M | 23.05M | 20.89M | 32.41M | 24.99M | 2.93M |
Cash Flow | ||||||
| Free Cash Flow | -1.01M | 6.16M | 9.07M | -17.09M | -12.82M | 1.10M |
| Operating Cash Flow | 511.91K | 6.16M | 9.21M | -16.60M | -12.76M | 1.11M |
| Investing Cash Flow | -1.52M | 0.00 | -140.81K | -139.39K | -61.50K | -6.25K |
| Financing Cash Flow | 533.27K | -2.40M | -7.15M | 11.91M | 18.49M | -596.61K |
IPOWER Technical Analysis
Negative
0.54
Price Trends
0.57
Negative
0.59
Negative
0.63
Negative
Market Momentum
-0.01
Positive
45.09
Neutral
3.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPW, the sentiment is Negative. The current price of 0.54 is above the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.57, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.09 is Neutral, neither overbought nor oversold. The STOCH value of 3.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IPW.
IPOWER Risk Analysis
IPOWER disclosed 65 risk factors in its most recent earnings report. IPOWER 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
IPOWER Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $5.41M | 0.85 | 13.67% | ― | 4.42% | ― | |
53 Neutral | $16.81M | ― | -7.51% | ― | -17.68% | 73.12% | |
46 Neutral | $39.30M | -0.18 | -117.07% | ― | -17.33% | -3.39% | |
46 Neutral | $13.22M | -0.27 | -1168.52% | ― | -10.68% | -74.47% | |
40 Underperform | $27.95M | -3.46 | ― | ― | -12.53% | -3.24% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.