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IMPINJ Inc (PI)
NASDAQ:PI
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IMPINJ
(NASDAQ:PI)
62Neutral
Positive Factors
Growth Potential
PI is well positioned to deliver stronger-than-expected growth over the next two years with expanding margins.
Product Launch
Management highlighted the launch of its Gen2X solution in December, citing 'overwhelming' interest from customers as well as deployments in all top 6 reader partners.
Negative Factors
Financial Guidance
The company provided sharply lower Q1 guidance, resulting from channel inlay partners having to clear out excess endpoint IC inventory.
IMPINJ (PI) vs. S&P 500 (SPY)
Market Cap
$2.70B
Dividend YieldN/A
Average Volume (3M)752.49K
Price to Earnings (P/E)72.1
Beta (1Y)1.95
Revenue Growth19.04%
EPS GrowthN/A
CountryUS
Employees451
SectorTechnology
Sector Strength45
IndustryHardware & Equipment
Share Statistics
EPS (TTM)1.31
Shares Outstanding28,538,124
10 Day Avg. Volume620,311
30 Day Avg. Volume752,492
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.85
Price to Cash Flow (P/CF)56.90
P/FCF Ratio50.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$170.75Price Target Upside87.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
IMPINJ Business Overview & Revenue Model
Company DescriptionImpinj, Inc. is a leading provider in the field of radio-frequency identification (RFID) technology. Founded in 2000 and headquartered in Seattle, Washington, the company operates primarily in the technology and hardware sectors. Impinj specializes in delivering RFID solutions that enable businesses to identify, locate, and authenticate items. Its core products include RFID chips, readers, and software, which together form a comprehensive platform that supports a wide range of applications across industries such as retail, healthcare, logistics, and manufacturing.
How the Company Makes MoneyImpinj makes money primarily through the sale of its RFID chips, readers, and software solutions. The company's revenue model is centered around providing these hardware components and software platforms to businesses that need to implement RFID systems for inventory management, asset tracking, and other applications. Key revenue streams include the sale of endpoint ICs, connectivity devices, and the provision of software services. Additionally, Impinj partners with system integrators and distributors who help deploy their RFID solutions to end-users. The company's earnings are also bolstered by ongoing customer support and maintenance contracts, which provide a recurring revenue stream. Strategic partnerships with major retailers and logistics companies further drive growth by expanding the adoption of Impinj's RFID technology globally.
IMPINJ Financial Statement Overview
Summary
IMPINJ demonstrates significant improvement in its financial health, marked by strong revenue growth and turning profitable. While the balance sheet shows improved equity levels, high leverage remains a concern. The company's cash flow is notably robust, providing financial flexibility.Income Statement
IMPINJ's income statement reflects strong revenue growth with a substantial increase from $307.5M to $366.1M, marking a growth rate of 19%. The gross profit margin improved to 51.6%, indicating efficient cost management. However, the company continues to face profitability challenges as evidenced by a negative EBIT margin of -1.9%. Despite this, the company turned net income positive to $41.2M, showcasing a notable improvement from previous losses.78
Positive
Balance Sheet
The balance sheet shows an increase in stockholders' equity to $149.9M, improving the debt-to-equity ratio to 1.95, reflecting a better financial structure. However, the company still maintains a high level of total debt at $292.8M, indicating leverage risks. The equity ratio stands at 30.6%, highlighting a moderate reliance on equity.65
Positive
Cash Flow
IMPINJ exhibits strong cash flow performance with a positive free cash flow of $111.2M, reversing from negative free cash flow in the previous year. The operating cash flow to net income ratio is robust at 3.1, indicating efficient cash generation relative to net income. The free cash flow growth rate is not applicable due to the prior negative values, but current cash flow stability is evident.83
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 366.09M | 307.54M | 257.80M | 190.28M | 138.92M | Gross Profit |
| 188.85M | 151.98M | 137.88M | 98.95M | 65.14M | EBIT |
| -7.07M | -43.48M | -19.58M | -35.53M | -47.07M | EBITDA |
| 57.82M | -26.83M | -13.54M | -43.95M | -41.92M | Net Income Common Stockholders |
| 40.84M | -43.37M | -24.30M | -51.26M | -51.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 164.71M | 113.23M | 173.75M | 193.35M | 106.09M | Total Assets |
| 489.08M | 359.41M | 349.74M | 315.54M | 207.62M | Total Debt |
| 292.80M | 294.59M | 294.43M | 304.37M | 73.46M | Net Debt |
| 246.75M | 199.79M | 274.83M | 180.47M | 49.83M | Total Liabilities |
| 339.22M | 325.28M | 334.15M | 326.61M | 98.50M | Stockholders Equity |
| 149.86M | 34.13M | 15.59M | -11.08M | 109.12M |
| Cash Flow | Free Cash Flow | |||
| 111.20M | -68.22M | -11.44M | -9.77M | -19.95M | Operating Cash Flow |
| 128.31M | -49.38M | 641.00K | 6.46M | -16.88M | Investing Cash Flow |
| -192.57M | 115.81M | -102.80M | -18.64M | -36.29M | Financing Cash Flow |
| 15.68M | 8.74M | -2.15M | 112.44M | 9.90M |
IMPINJ Technical Analysis
Negative
91.16
Price Trends
119.52
Negative
152.01
Negative
162.09
Negative
Market Momentum
-7.21
Negative
37.09
Neutral
62.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PI, the sentiment is Negative. The current price of 91.16 is below the 20-day moving average (MA) of 97.11, below the 50-day MA of 119.52, and below the 200-day MA of 162.09, indicating a bearish trend. The MACD of -7.21 indicates Negative momentum. The RSI at 37.09 is Neutral, neither overbought nor oversold. The STOCH value of 62.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PI.
IMPINJ Risk Analysis
IMPINJ disclosed 54 risk factors in its most recent earnings report. IMPINJ 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
IMPINJ Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $53.43B | 49.15 | 49.69% | ― | 12.35% | 22.28% | |
67 Neutral | $52.20B | 20.93 | 28.16% | 1.97% | -4.99% | -9.18% | |
66 Neutral | $16.34B | 10.90 | 29.37% | ― | -3.04% | 388.42% | |
62 Neutral | $2.70B | 72.08 | 44.39% | ― | 19.04% | ― | |
62 Neutral | $14.40B | 27.55 | 15.95% | ― | 8.07% | 78.02% | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% |
* Technology Sector Average
Performance Comparison
PI
IMPINJ
91.16
-33.43
-26.83%
ADSK
Autodesk
251.85
-6.68
-2.58%
NXPI
NXP Semiconductors
204.45
-35.21
-14.69%
TRMB
Trimble
67.36
5.03
8.07%
ZBRA
Zebra Tech
279.18
-2.59
-0.92%
IMPINJ Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -28.25% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and financial performance in 2024, with new market opportunities in food tagging and enterprise solutions. However, challenges in the form of geopolitical uncertainties, excess inventory, and changes in customer demand are expected to impact the first quarter of 2025. Despite these hurdles, the company remains optimistic about long-term growth prospects.Highlights
Record Annual Revenue and Growth
2024 marked the fourth consecutive year of double-digit revenue growth with a new yearly revenue record. Endpoint IC unit volumes grew 34% over 2023.
Strong Financial Performance
Record annual adjusted EBITDA and free cash flow were achieved, driven by top line growth and operating leverage.
New Market Catalysts
The start of item-level food tagging and the introduction of Impinj Gen2X, which expands enterprise solutions capabilities.
Strong Systems Revenue
Fourth quarter systems revenue was $17.5 million, up 23% sequentially and 4% year-over-year, driven by reader gateway and reader IC sales.
Positive Outlook for 2025
Continued demand growth expected in retail apparel, general merchandise, and supply chain logistics, with emerging opportunities in food tagging.
Lowlights
First Quarter 2025 Challenges
Headwinds in the form of geopolitical uncertainty, tariffs, and aggressive label price shopping are impacting first quarter 2025 performance.
Endpoint IC Revenue Decline
Fourth quarter endpoint IC revenue was down 9% sequentially, with further declines expected in the first quarter of 2025 due to excess inventory.
Customer Demand and Inventory Issues
Excess inventory and changes in end user demand, particularly in the supply chain and logistics sector, have led to delayed orders and inventory buildup.
Impact of Geopolitical and Tariff Issues
Uncertainty around tariffs has resulted in sourcing challenges and delayed order cycles.
Company Guidance
In the Impinj Fourth Quarter and Full Year 2024 financial results call, several metrics were highlighted. The company reported a fourth consecutive year of double-digit revenue growth, with 2024 revenue reaching $366.1 million, up 19% from $307.5 million in 2023. Fourth-quarter revenue was $91.6 million, a 30% increase year-over-year but a 4% sequential decline. Endpoint IC unit volumes grew 34% over 2023, and endpoint IC revenue for the fourth quarter was $74.1 million, up 37% year-over-year. Systems revenue for Q4 was $17.5 million, showing a 4% year-over-year increase. The company also achieved record annual adjusted EBITDA of $65.9 million and record free cash flow, driven by strong top-line growth and favorable litigation settlements. However, the first quarter of 2025 is expected to see a decrease in revenue, projected between $70 million and $73 million due to geopolitical uncertainties, tariff challenges, and inventory corrections. The company anticipates a modest sequential decline in gross margin for Q1 2025, marking the low point for the year.IMPINJ Corporate Events
Business Operations and StrategyFinancial Disclosures
Impinj Reports Strong 2024 Financial Results Amid Changes
Positive
Feb 5, 2025
On February 5, 2025, Impinj reported strong financial results for the fourth quarter and full year of 2024, including a revenue of $91.6 million for the quarter and $366.1 million for the year. Despite facing upcoming first-quarter headwinds, the company aims to leverage its competitive advantages to strengthen its market position.
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.