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Ideal Power Inc (IPWR)
:IPWR
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Ideal Power
(NASDAQ:IPWR)
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Rating:44Neutral
Price Target:
$4.00
▲(1.78% Upside)
Ideal Power's overall stock score reflects significant financial challenges and poor valuation metrics, despite some positive developments in strategic partnerships and leadership changes. The technical analysis indicates a bearish trend, and while the earnings call highlighted potential growth opportunities, the company's financial health remains a concern.
Positive Factors
Strategic Partnership
The partnership with Stellantis could lead to significant long-term revenue through a multiyear EV contactor program, enhancing Ideal Power's market position in the EV sector.
Market Expansion
Expansion into Asia, a key market for power electronics, positions Ideal Power to capture growth opportunities and leverage faster technology adoption in the region.
Product Innovation
Enhancing B-TRAN's power rating boosts its competitiveness and appeal, potentially driving higher adoption and sales in the power electronics market.
Negative Factors
Cash Burn
Rising cash burn indicates financial strain, which could limit Ideal Power's ability to invest in growth and innovation, impacting long-term sustainability.
Revenue Challenges
Minimal revenue generation reflects challenges in converting technological advancements into sales, potentially hindering financial performance and growth.
Long Evaluation Period
Extended evaluation periods for new technology can delay revenue realization and market penetration, affecting Ideal Power's growth trajectory.
Ideal Power (IPWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.85M
Dividend YieldN/A
Average Volume (3M)72.76K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-69.65%
EPS Growth11.41%
CountryUS
Employees16
SectorTechnology
Sector Strength88
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.32
Shares Outstanding8,511,403
10 Day Avg. Volume90,086
30 Day Avg. Volume72,762
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)3.45
Price to Sales (P/S)716.59
P/FCF Ratio-6.90
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue280.98
Enterprise Value/Gross Profit-765.22
Enterprise Value/Ebitda-1.36
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.32
Revenue Forecast (FY)N/A
Ideal Power Business Overview & Revenue Model
Company DescriptionIdeal Power Inc. (IPWR) is a technology company specializing in innovative power conversion solutions, primarily focusing on the renewable energy and electric vehicle sectors. The company develops and sells advanced power electronics, including its proprietary Power Packet Switching Architecture (PPSA) technology, which is designed to enhance the efficiency and reliability of energy management systems. Ideal Power's core products cater to applications in energy storage systems, solar power integration, and electric vehicle charging, contributing to the transition towards sustainable energy solutions.
How the Company Makes MoneyIdeal Power generates revenue through the sale of its power conversion products and systems, which are utilized in various applications like renewable energy integration and electric vehicle charging infrastructure. Key revenue streams include the direct sale of its PPSA-based power converters and systems to manufacturers and energy service providers. The company also engages in strategic partnerships with industry leaders, which can enhance its market reach and product integration, ultimately contributing to its earnings. Additionally, Ideal Power may derive revenue from service contracts and support for installations of its technology, further bolstering its financial performance.
Ideal Power Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including a new CEO with extensive experience, a promising partnership with Stellantis, expansion into the Asian market, and technical advancements in B-TRAN products. However, increased cash burn, minimal revenue, and long evaluation periods for new technology present challenges. Overall, the call reflects a balanced outlook with significant potential but also notable hurdles.Q3-2025 Updates
Positive Updates
New CEO Appointment
David Somo was appointed as the new CEO, bringing over thirty years of semiconductor industry experience, with plans to drive revenue growth and leverage existing market opportunities.
Stellantis Partnership
Secured a purchase order from Stellantis for custom B-TRAN devices, with potential for a multiyear EV contactor program. This could lead to B-TRAN's deployment in all Stellantis EV models.
Expansion into Asia
Hired a direct salesperson in Asia to expand market reach, with Asia being the largest market for power electronics and known for faster technology adoption.
Increased B-TRAN Power Rating
Increased the power rating of the discrete B-TRAN product by 50%, sparking greater interest from both existing customers and new prospects.
First Design Win Customer Success
Successfully completed testing of updated solid-state circuit breakers with the first design win customer, moving towards production and end-customer sampling.
Negative Updates
Increased Cash Burn
Cash burn from operating and investing activities increased to $2.7 million in Q3 2025, up from $2.4 million in 2024, with expectations of $10 million for the full year.
Minimal Revenue Achieved
Recorded modest revenue as customers continue to evaluate B-TRAN technology, with initial orders expected to be small until customers progress through their design cycles.
Long Evaluation Period for New Technology
B-TRAN being a new semiconductor technology requires educating customers and has a long evaluation period due to engineers' cautious approach.
Company Guidance
During the Ideal Power third quarter 2025 results conference call, the company provided several key metrics and guidance points. Ideal Power reported a cash burn from operating and investing activities of $2.7 million for the third quarter, with a forecasted full-year cash burn of approximately $10 million. The company noted an increase in operating expenses to $3 million, attributed to higher wafer fabrication costs at their second foundry. Tim Burns, the CFO, mentioned that the company had cash and cash equivalents totaling $8.4 million as of September 30, 2025, with no debt on their balance sheet. Ideal Power is engaged in a strategic partnership with Stellantis and expects a multiyear EV contactor program that could begin test installations as early as late 2026. The company also highlighted progress with a first design win customer, indicating potential revenue of several hundred thousand dollars in the first year and over a million dollars in the second year. Moreover, Ideal Power increased the power rating of their discrete B-TRAN product by 50%, sparking greater interest from existing and new customers. CEO David Somo emphasized a focus on revenue growth and expanding the sales pipeline, particularly in Asia, with the addition of a direct salesperson in the region to capture the growing interest in B-TRAN technology.Ideal Power Financial Statement Overview
Summary
Ideal Power faces significant financial challenges with negative net income and margins, erratic revenue growth, and concerning cash flow issues. The balance sheet shows some strength with a substantial cash position, but overall financial health is weak.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.15
Very Negative
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.30
Negative
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.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 135.17K | 86.03K | 198.87K | 203.27K | 576.40K | 428.13K |
| Gross Profit | -49.63K | -7.38K | 38.26K | 0.00 | 0.00 | 0.00 |
| EBITDA | -27.87M | -10.65M | -10.08M | -7.16M | -4.69M | -7.67M |
| Net Income | -28.43M | -10.42M | -9.95M | -7.19M | -4.77M | -7.79M |
Balance Sheet | ||||||
| Total Assets | 12.23M | 19.83M | 12.25M | 19.40M | 25.88M | 5.13M |
| Cash, Cash Equivalents and Short-Term Investments | 8.39M | 15.84M | 8.47M | 16.35M | 23.17M | 3.16M |
| Total Debt | 425.08K | 486.02K | 202.99K | 267.58K | 326.45K | 173.46K |
| Total Liabilities | 2.15M | 1.97M | 2.19M | 1.49M | 1.73M | 1.30M |
| Stockholders Equity | 10.07M | 17.86M | 10.06M | 17.91M | 24.15M | 3.83M |
Cash Flow | ||||||
| Free Cash Flow | -24.51M | -9.25M | -7.37M | -6.57M | -4.52M | -3.09M |
| Operating Cash Flow | -24.14M | -8.74M | -7.13M | -6.38M | -4.28M | -3.02M |
| Investing Cash Flow | -1.19M | -506.43K | -522.95K | -312.74K | -236.94K | -67.16K |
| Financing Cash Flow | -615.32K | 16.62M | -216.26K | -127.87K | 24.53M | 3.19M |
Ideal Power Technical Analysis
Negative
3.93
Price Trends
4.68
Negative
4.87
Negative
4.93
Negative
Market Momentum
-0.15
Negative
53.19
Neutral
85.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPWR, the sentiment is Negative. The current price of 3.93 is above the 20-day moving average (MA) of 3.82, below the 50-day MA of 4.68, and below the 200-day MA of 4.93, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 85.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IPWR.
Ideal Power Risk Analysis
Ideal Power disclosed 23 risk factors in its most recent earnings report. Ideal Power 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
Ideal Power Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | $46.27M | ― | ― | ― | ― | ― | |
44 Neutral | $36.85M | ― | -74.44% | ― | -69.65% | 11.41% | |
43 Neutral | $96.18M | ― | ― | ― | 18.24% | 24.49% | |
42 Neutral | $33.50M | ― | ― | ― | 2.14% | 5.01% | |
42 Neutral | $50.42M | ― | -265.36% | ― | -3.53% | 24.37% | |
26 Underperform | $34.46M | -0.91 | ― | ― | ― | 61.78% |
* Technology Sector Average
IPWR
Ideal Power
4.32
-2.04
-32.08%
PPSI
Pioneer Power Solutions
4.12
-0.26
-5.94%
FLUX
Flux Power Holdings
1.61
-0.11
-6.40%
GWH
ESS Tech
2.29
-2.80
-55.01%
SDST
Stardust Power
3.90
-49.40
-92.68%
DFLI
Dragonfly Energy Holdings Corp
0.87
-2.33
-72.81%
Ideal Power Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Ideal Power Appoints New CEO Amid Leadership Transition
Positive
Nov 3, 2025
On October 31, 2025, Ideal Power Inc. announced the retirement of its CEO, R. Daniel Brdar, effective November 2, 2025, and the appointment of David Somo as the new President and CEO, effective November 3, 2025. Brdar will assist in the transition for a year, while Somo, with over 30 years of semiconductor industry experience, is expected to drive growth in Ideal Power’s target markets with his commercial expertise. This leadership change occurs as the company is poised to commercialize its innovative B-TRAN® technology, which has a significant market potential.
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.