IMPINJ (PI) AI Stock Analysis

• Market Cap: $4.87B
• Dividend Yield: N/A
• Average Volume (3M): 554.03K
• Price to Earnings (P/E): 22468.1
• Beta (1Y): 2.14
• Revenue Growth: 13.96%
• EPS Growth: -96.21%
• Country: US
• Employees: 451
• Sector: Technology
• Sector Strength: 94
• Industry: Communication Equipment
• EPS (TTM): 0.80
• Shares Outstanding: 29,089,691
• 10 Day Avg. Volume: 532,531
• 30 Day Avg. Volume: 554,028
• 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: 0.70
• Enterprise Value/Revenue: 9.45
• Enterprise Value/Gross Profit: 18.14
• Enterprise Value/Ebitda: 190.45
• 1Y Price Target: $171.86
• Price Target Upside: 6.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: $179.00 ▲(10.65% Upside)

IMPINJ's stock is primarily driven by strong technical momentum and a positive earnings outlook, which are offset by high leverage and valuation concerns. While the company is on a promising growth path with improvements in revenue and cash flow, challenges in achieving consistent profitability and overvaluation are significant risks.

Positive Factors

Financial Performance

Impinj reported better than expected results and guidance on strength in Endpoint ICs and new project wins.

Market Demand

PI continues to chalk up new wins and benefit from new use cases, on the strength of market demand for its M800 endpoint IC family and Gen2x technology.

Negative Factors

Gross Margins

GMs declined sequentially due to lower Systems revenue mix.

Revenue Guidance

PI guided for Q3 revenues to be down 2.5% y/o/y at the midpoint of guidance, which was better than consensus -10%.

IMPINJ Business Overview & Revenue Model

Company Description

IMPINJ, Inc. is a leading provider of RAIN RFID solutions that enable businesses to identify, locate, and authenticate items in real-time. Operating primarily in the technology sector, IMPINJ's core products include RAIN RFID readers, chips, and software that facilitate the tracking of inventory and assets across various industries such as retail, healthcare, logistics, and manufacturing. The company's innovative technology enhances supply chain efficiency, improves operational visibility, and enables better customer experiences.

How the Company Makes Money

IMPINJ generates revenue through multiple streams primarily focused on the sale of RAIN RFID products, including integrated circuits (ICs), readers, and software solutions. The company sells its chips to manufacturers who embed them in items for tracking purposes, while their readers are utilized by businesses to scan and process RAIN RFID tags. Additionally, IMPINJ offers software solutions that help manage and analyze the data collected through their RFID systems. Significant partnerships with key players in various sectors, including retail giants and logistics providers, bolster their market presence and drive sales. The recurring revenue model is further supported by service agreements and maintenance contracts, providing ongoing support and updates for their technology.

IMPINJ Financial Statement Overview

Summary

IMPINJ is on a growth trajectory with significant revenue increases and improvements in cash flow generation. While the company has made strides in reducing losses and increasing stockholders' equity, challenges remain in achieving consistent profitability and managing leverage. Continued focus on cost management and capital structure optimization will be crucial to enhancing financial health.

Income Statement

IMPINJ has demonstrated strong revenue growth, with a TTM revenue of $358.94M, up significantly from $138.92M in 2020. The gross profit margin is healthy at 52.11% for the TTM, reflecting effective cost management. However, the company has struggled with profitability at the operating level, as indicated by negative EBIT and modest net profit margin of 0.18% in the TTM period. Despite improvements, maintaining consistent profitability remains a challenge.

Balance Sheet

The balance sheet indicates a high leverage, with a debt-to-equity ratio of 1.56 in the TTM, suggesting potential risk in financial stability. Stockholders' equity has improved significantly to $187.69M from a deficit in 2021, reflecting a positive trajectory in equity growth. However, the equity ratio is still moderate at 36.87%, indicating room for strengthening the capital structure.

Cash Flow

IMPINJ has shown improvement in cash flow, with operating cash flow to net income ratio at 71.75 in the TTM, indicating strong cash generation relative to net income. Free cash flow has grown, with a TTM free cash flow of $27.46M, up from negative values in earlier years. Despite this progress, cash flow stability could be enhanced further.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	358.94M	366.09M	307.54M	257.80M	190.28M	138.92M
Gross Profit	187.09M	188.85M	151.98M	137.88M	98.95M	65.14M
EBITDA	17.82M	57.82M	-26.83M	-13.54M	-43.95M	-41.92M
Net Income	633.00K	40.84M	-43.37M	-24.30M	-51.26M	-51.92M
Balance Sheet
Total Assets	508.82M	489.08M	359.41M	349.74M	315.54M	207.62M
Cash, Cash Equivalents and Short-Term Investments	193.21M	164.71M	113.23M	173.75M	193.35M	106.09M
Total Debt	292.40M	292.80M	294.59M	294.43M	304.37M	73.46M
Total Liabilities	321.13M	339.22M	325.28M	334.15M	326.61M	98.50M
Stockholders Equity	187.69M	149.86M	34.13M	15.59M	-11.08M	109.12M
Cash Flow
Free Cash Flow	27.46M	111.20M	-68.22M	-11.44M	-9.77M	-19.95M
Operating Cash Flow	45.41M	128.31M	-49.38M	641.00K	6.46M	-16.88M
Investing Cash Flow	-229.72M	-192.57M	115.81M	-102.80M	-18.64M	-36.29M
Financing Cash Flow	11.80M	15.68M	8.74M	-2.15M	112.44M	9.90M

IMPINJ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 161.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PI, the sentiment is Positive. The current price of 161.77 is above the 20-day moving average (MA) of 144.26, above the 50-day MA of 124.84, and above the 200-day MA of 125.94, indicating a bullish trend. The MACD of 12.69 indicates Negative momentum. The RSI at 66.44 is Neutral, neither overbought nor oversold. The STOCH value of 79.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PI.

IMPINJ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGII	73 Outperform	$1.22B	28.82	7.21%	―	-2.37%	147.46%
BDC	70 Outperform	$4.98B	22.78	18.34%	0.16%	12.93%	17.64%
PI	69 Neutral	$4.87B	22,468.06	0.42%	―	13.96%	-96.21%
EXTR	69 Neutral	$2.63B	―	-16.44%	―	2.05%	91.37%
Sector *	68 Neutral	¥242.18B	15.62	6.62%	2.44%	9.08%	2.46%
COMM	59 Neutral	$3.34B	―	17.08%	―	-11.03%	91.98%
VIAV	58 Neutral	$2.41B	70.18	4.76%	―	8.39%	―

IMPINJ Corporate Events

Impinj COO Resignation Amid Stable Earnings Outlook

On May 22, 2025, Impinj, Inc. announced the resignation of its Chief Operating Officer, Hussein Mecklai, effective May 20, 2025. Despite this leadership change, the company affirmed that there would be no alterations to its previously disclosed earnings guidance, indicating stability in its operational outlook.

The most recent analyst rating on (PI) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on IMPINJ stock, see the PI Stock Forecast page.