Ideal Power (IPWR) AI Stock Analysis

• Market Cap: $44.36M
• Dividend Yield: N/A
• Average Volume (3M): 94.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -86.56%
• EPS Growth: 20.19%
• Country: US
• Employees: 16
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.33
• Shares Outstanding: 8,498,014
• 10 Day Avg. Volume: 45,777
• 30 Day Avg. Volume: 94,160
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 1.59K
• Enterprise Value/Gross Profit: -1.36K
• Enterprise Value/Ebitda: -2.70
• 1Y Price Target: $5.00
• Price Target Upside: -4.21% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $5.00 ▼(-4.21% Downside)

Ideal Power's overall stock score is primarily impacted by its challenging financial performance, with ongoing losses and negative margins. The earnings call provided some optimism with strategic partnerships and technological advancements, but increased cash burn and modest revenue remain concerns. Technical analysis and valuation metrics further reflect the company's current struggles.

Positive Factors

Strategic Partnerships

The expansion of partnerships with top automakers enhances Ideal Power's market position and potential revenue streams, indicating a strong strategic alignment with industry leaders.

Technological Advancements

Progress in solid-state circuit breaker technology showcases Ideal Power's innovation capabilities, potentially leading to increased adoption and competitive advantage in energy solutions.

Financial Stability

A strong cash position and no debt provide Ideal Power with financial flexibility to invest in growth opportunities and weather financial challenges, supporting long-term sustainability.

Negative Factors

Revenue Growth Challenges

Modest revenue growth indicates potential difficulties in achieving market penetration and scaling sales, which could impact long-term revenue stability and growth prospects.

Increased Cash Burn

Rising cash burn rates may strain Ideal Power's financial resources, necessitating efficient capital management to sustain operations and fund future growth initiatives.

Net Loss

Ongoing net losses highlight operational inefficiencies and financial challenges, which could hinder Ideal Power's ability to achieve profitability and long-term financial health.

Ideal Power Business Overview & Revenue Model

Company Description

Ideal Power Inc. focuses on the development and commercialization of its B-TRAN technology. It develops Bi-directional bi-polar junction TRANsistor solid state switch technology. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was incorporated in 2007 and is headquartered in Austin, Texas.

How the Company Makes Money

Ideal Power generates revenue primarily through the sale of its power conversion products, including inverters and energy management systems. The company engages in direct sales to manufacturers and installers in the renewable energy sector, as well as to businesses involved in electric vehicle infrastructure. Key revenue streams include product sales, licensing agreements, and strategic partnerships with leading firms in the energy and automotive industries. Additionally, Ideal Power may benefit from government incentives and grants aimed at promoting renewable energy technologies, which can further enhance its earnings potential.

Ideal Power Financial Statement Overview

Summary

Ideal Power faces significant financial challenges with negative net income and gross profit margins. Despite a strong cash position, the company struggles with profitability and operational inefficiencies, as reflected in negative cash flows.

Income Statement

The income statement of Ideal Power shows a challenging financial situation. Despite a minor increase in revenue in recent years, the company has consistently reported negative net income and gross profit margins. Revenue growth is erratic, and EBIT margins are deeply negative, indicating substantial operating losses.

Balance Sheet

Ideal Power's balance sheet highlights some stability with a substantial cash position relative to its liabilities, resulting in negative net debt. The equity ratio is high, but the debt-to-equity ratio remains low, suggesting minimal leverage. However, the stockholders' equity has shown a declining trend, which could be a concern for long-term sustainability.

Cash Flow

The cash flow situation for Ideal Power is concerning, with persistent negative operating and free cash flows. Although there was a significant inflow from financing activities in certain years, it is insufficient to cover the consistent cash outflows from operations. The operating cash flow to net income ratio indicates that cash flow issues may be exacerbating the net income losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.24K	86.03K	198.87K	203.27K	576.40K	428.13K
Gross Profit	-22.54K	-7.38K	38.26K	0.00	0.00	0.00
EBITDA	-11.33M	-10.65M	-9.62M	-7.16M	-4.69M	-7.67M
Net Income	-11.03M	-10.42M	-9.95M	-6.88M	-4.78M	-7.80M
Balance Sheet
Total Assets	14.95M	19.83M	12.25M	19.40M	25.88M	5.13M
Cash, Cash Equivalents and Short-Term Investments	11.11M	15.84M	8.47M	16.35M	23.17M	3.16M
Total Debt	446.36K	486.02K	202.99K	267.58K	326.45K	173.46K
Total Liabilities	2.21M	1.97M	2.19M	1.49M	1.73M	1.30M
Stockholders Equity	12.74M	17.86M	10.06M	17.91M	24.15M	3.83M
Cash Flow
Free Cash Flow	-9.55M	-8.94M	-7.37M	-6.70M	-4.52M	-3.09M
Operating Cash Flow	-9.20M	-8.74M	-7.13M	-6.38M	-4.28M	-3.02M
Investing Cash Flow	-487.76K	-506.43K	-522.95K	-312.74K	-236.94K	-67.16K
Financing Cash Flow	725.37K	16.62M	-216.26K	-127.87K	24.53M	3.19M

Ideal Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPWR, the sentiment is Positive. The current price of 5.22 is above the 20-day moving average (MA) of 5.10, above the 50-day MA of 5.12, and below the 200-day MA of 5.58, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 31.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IPWR.

Ideal Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	82 Outperform	$141.03M	18.32	16.59%	2.01%	29.60%	42.80%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
ENVX	50 Neutral	$1.57B	―	-68.46%	―	60.04%	52.49%
IPWR	45 Neutral	$44.36M	―	-64.46%	―	-86.56%	20.19%
GWH	43 Neutral	$20.81M	―	-207.48%	―	-16.98%	2.43%
SDST	26 Underperform	$24.11M	―	-860.70%	―	―	25.87%
RAYA	―	$7.56M	―	-4.77%	―	―	―

Ideal Power Corporate Events

Ideal Power Holds 2025 Annual Stockholders Meeting

On June 12, 2025, Ideal Power Inc. conducted its 2025 Annual Meeting of Stockholders virtually, where 63.92% of outstanding shares were represented. During the meeting, stockholders approved the election of five directors, ratified the appointment of BPM LLP as the independent accounting firm, and supported the executive compensation plan. Additionally, the board decided to hold annual advisory votes on executive compensation based on the majority preference of stockholders.