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KVH Industries (KVHI)
NASDAQ:KVHI
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KVH Industries
(NASDAQ:KVHI)
48Neutral
KVH Industries (KVHI) vs. S&P 500 (SPY)
Market Cap
$100.40M
Dividend YieldN/A
Average Volume (3M)36.79K
Price to Earnings (P/E)―
Beta (1Y)0.48
Revenue Growth-14.33%
EPS Growth29.34%
CountryUS
Employees247
SectorTechnology
Sector Strength45
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.57
Shares Outstanding19,764,048
10 Day Avg. Volume29,630
30 Day Avg. Volume36,789
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.89
Price to Cash Flow (P/CF)62.80
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
KVH Industries Business Overview & Revenue Model
Company DescriptionKVH Industries, Inc. (KVHI) is a leading provider of innovative connectivity and navigation solutions to the maritime, leisure, commercial, and military markets. The company's core products include satellite-based communication systems, inertial navigation systems, and mobile broadband services, which enable reliable communication, precise navigation, and enhanced situational awareness for its customers.
How the Company Makes MoneyKVH Industries generates revenue primarily through the sale of its satellite communication systems and services, such as TracPhone and TracVision, which provide internet, television, and voice services to vessels at sea. Additionally, the company earns revenue from its inertial navigation products, including fiber optic gyros and tactical navigation systems, used in both military and commercial applications. KVH also offers subscription-based services, such as its mini-VSAT Broadband network, which provides global connectivity to maritime vessels. Key revenue streams include hardware sales, service subscriptions, and licensing fees. Partnerships with satellite operators and maritime service providers further enhance KVH's ability to offer comprehensive connectivity solutions and drive revenue growth.
KVH Industries Financial Statement Overview
Summary
KVH Industries faces significant profitability issues with declining revenues and negative margins. The balance sheet is strong with low leverage, but cash flow challenges could impede future growth. Continued financial restructuring may be needed to improve operational efficiency and cash generation.Income Statement
The company has faced consistent revenue declines and negative profitability. Net profit margin is negative, indicating losses. Though gross profit margin remains high, EBIT and EBITDA margins are negative, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, declining total assets and stockholders' equity over recent years could signal potential challenges ahead.60
Neutral
Cash Flow
Operating cash flow has been negative in recent years, impacting free cash flow. The company shows an ability to generate cash through investing activities, but overall cash flow remains a concern due to negative free cash flow.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 113.83M | 132.38M | 138.88M | 171.77M | 158.73M | Gross Profit |
| 35.22M | 37.87M | 52.60M | 59.80M | 57.61M | EBIT |
| -11.88M | -17.34M | -5.65M | -17.95M | -12.45M | EBITDA |
| 2.67M | -1.67M | 9.96M | 1.43M | -10.09M | Net Income Common Stockholders |
| -11.05M | -15.42M | -3.92M | -9.76M | -21.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 50.57M | 69.77M | 76.74M | 24.52M | 37.72M | Total Assets |
| 155.08M | 172.63M | 200.53M | 168.79M | 183.59M | Total Debt |
| 1.23M | 1.07M | 2.17M | 3.14M | 13.96M | Net Debt |
| -49.34M | -10.22M | -18.89M | -8.24M | 1.38M | Total Liabilities |
| 16.46M | 25.26M | 43.87M | 39.82M | 51.71M | Stockholders Equity |
| 138.63M | 147.37M | 156.66M | 128.98M | 131.88M |
| Cash Flow | Free Cash Flow | |||
| -20.59M | -9.40M | -5.55M | -15.89M | -17.22M | Operating Cash Flow |
| -13.17M | 2.53M | 8.89M | 2.91M | -3.08M | Investing Cash Flow |
| 52.39M | -14.71M | 375.00K | -6.71M | -9.29M | Financing Cash Flow |
| 110.00K | 2.34M | 708.00K | 2.65M | 7.13M |
KVH Industries Technical Analysis
Neutral
5.08
Price Trends
5.34
Negative
5.56
Negative
5.12
Negative
Market Momentum
-0.10
Negative
49.53
Neutral
56.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KVHI, the sentiment is Neutral. The current price of 5.08 is above the 20-day moving average (MA) of 5.04, below the 50-day MA of 5.34, and below the 200-day MA of 5.12, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 49.53 is Neutral, neither overbought nor oversold. The STOCH value of 56.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KVHI.
KVH Industries Risk Analysis
KVH Industries disclosed 31 risk factors in its most recent earnings report. KVH Industries reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KVH Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $177.56M | 7.62 | 52.23% | 5.55% | 24.10% | 603.04% | |
59 Neutral | $10.59B | 10.09 | -6.37% | 3.05% | 7.44% | -10.67% | |
48 Neutral | $100.40M | ― | -7.73% | ― | -14.33% | 29.34% | |
48 Neutral | $127.70M | 145.47 | 111.75% | ― | 5.41% | ― | |
45 Neutral | $44.16M | ― | -27.85% | ― | 8.14% | 33.76% | |
42 Neutral | $41.09M | ― | -53.44% | ― | -13.06% | -465.17% |
* Technology Sector Average
Performance Comparison
KVHI
KVH Industries
5.08
0.30
6.28%
CMTL
Comtech Telecommunications
1.40
-0.65
-31.71%
FEIM
Frequency Electronics
18.35
9.38
104.57%
AIRG
Airgain
3.97
-1.25
-23.95%
INSG
Inseego
8.51
4.66
121.04%
KVH Industries Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -11.50% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted KVH Industries' strategic shift towards new communication technologies, such as Starlink and OneWeb, and successful cost management strategies. Despite these positive developments, the company faced challenges with declining revenue and airtime margins. The overall sentiment reflects a balanced view, recognizing both strategic advancements and financial challenges.Highlights
Expansion of Product Offerings
KVH Industries expanded its portfolio to include multi-orbit multichannel solutions, including Starlink and a high-speed cellular solution, marking a significant strategic shift.
Record Terminal Shipments
The company shipped over 1,000 Starlink units and about 200 VSAT terminals in Q4, recording the fourth consecutive quarterly record for terminal shipments.
Starlink Growth
Starlink has become the fastest-growing product line in KVH's history, with over 2,300 active maritime terminals by the end of 2024.
CommBox Edge Success
Demand for CommBox Edge was strong, with Q4 activations doubling from Q3. New features are being rolled out, including integrated cybersecurity tools.
Addition of OneWeb
KVH added OneWeb to its satellite communications service portfolio, signing an agreement with Seaspan to equip its fleet with OneWeb service.
Cost Reduction Achievements
KVH reduced recurring operational expenses by almost 10% for the full year, aligning with the contraction in revenue.
Lowlights
Revenue Decline
Total revenue for Q4 was $26.9 million, a 4.5% decrease from Q4 2023, and a decline from the third quarter revenue of $29 million.
Airtime Gross Margin Decline
Airtime gross margin dropped to 28.2% in Q4 from 36.5% in the prior quarter, attributed to churn from the GEO-based VSAT network.
Negative Free Cash Flow
Adjusted EBITDA less CapEx was negative $0.3 million for the quarter, compared to a positive $1.4 million in Q3.
Company Guidance
During the KVH Industries fourth quarter 2024 earnings call, the company provided guidance for 2025, projecting revenue between $115 million and $125 million and an adjusted EBITDA ranging from $9 million to $15 million. The call highlighted the company's strategic shift from focusing solely on VSAT services to embracing a hybrid connectivity model that includes Starlink and OneWeb services. KVH shipped over 1,000 Starlink units in the fourth quarter and ended the year with more than 2,300 active maritime Starlink terminals. The company's efforts to reduce costs were evident, as operating expenses decreased by 10% year-over-year. Additionally, KVH's airtime gross margin was reported at 28.2% for the fourth quarter, with a drop attributed to churn in their GEO-based VSAT network. Going forward, KVH anticipates new revenue sources, such as Starlink, to offset declines in GEO airtime revenue, positioning the company for growth and profitability in 2025.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.