IMPINJ (PI) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: N/A
• Average Volume (3M): 857.61K
• Price to Earnings (P/E): 58.7
• Beta (1Y): 2.06
• Revenue Growth: 21.80%
• EPS Growth: 89.21%
• Country: US
• Employees: 451
• Sector: Technology
• Sector Strength: 65
• Industry: Communication Equipment
• EPS (TTM): 0.21
• Shares Outstanding: 28,983,130
• 10 Day Avg. Volume: 999,485
• 30 Day Avg. Volume: 857,607
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 14.52
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $119.00
• Price Target Upside: 21.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

IMPINJ's overall stock score reflects a mixed financial performance, with notable strengths in cash flow and market positioning. However, the company faces significant challenges in profitability and valuation, exacerbated by high leverage. The technical indicators suggest caution, while the earnings call provides a positive outlook with expected near-term growth, albeit with risks from tariffs and inventory pressures.

Positive Factors

Financial Performance

Impinj reported better than expected results and guidance on endpoint IC resilience.

Market Opportunity

PI has a long growth runway, including an emerging opportunity in grocery with news that it has been directly engaged with a second grocer for an application involving self-checkout.

Product Development

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

Future Guidance

The company stopped short of guiding beyond March, creating uncertainty about future performance.

Inventory Management

Impinj reported worse than expected results and guidance, driven by an accumulation of excess endpoint IC inventory at inlay partners and delayed orders as customers sought better prices.

Revenue Guidance

The company provided sharply lower Q1 guidance, resulting from channel inlay partners having to clear out excess endpoint IC inventory.

IMPINJ Business Overview & Revenue Model

Company Description

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform, which comprises multiple product families, wirelessly connects individual items and delivers data about the connected items to business and consumer applications. The company's platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that comprise reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enables its partners to deliver use cases, such as retail self-checkout and loss prevention, and warehouse pallet and carton tracking to end-users. The company primarily serves retail, supply chain and logistics, aviation, automotive, healthcare, industrial and manufacturing, sports, food, datacenter, travel, banking, and linen and uniform tracking sectors through distributors, system integrators, value-added resellers, and software solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.

How the Company Makes Money

Impinj 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 exhibits strengths in cash flow generation and gross profit margins but faces challenges in profitability and high leverage. Revenue growth has been inconsistent, with recent declines posing potential risks. Improvements in equity and cash flow ratios signal better financial management, but profitability issues and debt levels need addressing.

Income Statement

IMPINJ's financial performance shows a strong gross profit margin of 51.6% in TTM (Trailing-Twelve-Months), indicating efficient cost management. However, the company faces challenges with negative net profit and EBIT margins of -0.3% and -1.3% respectively, suggesting struggles in achieving profitability. Revenue growth has been positive over the years, with a 41.8% growth from 2021 to 2022, but the recent TTM figures show a slight decline of 0.7% from the previous year, highlighting potential challenges in maintaining growth momentum.

Balance Sheet

IMPINJ's balance sheet reveals a high debt-to-equity ratio of 1.82 in TTM, which indicates significant leverage and potential financial risk. The equity ratio has improved to 33.5% in TTM, reflecting better capital structure management compared to previous years. However, the return on equity is negative at -0.6%, pointing to difficulties in generating returns for shareholders despite improvements in equity levels.

Cash Flow

IMPINJ shows a robust free cash flow of $44.25 million in TTM, with a positive free cash flow to net income ratio, demonstrating effective cash generation relative to net income. The operating cash flow to net income ratio of 59.6 in TTM highlights efficient operations. Nevertheless, the free cash flow growth rate saw a decline from the previous year, necessitating attention to sustaining positive cash flow trends.

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
59.86M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 97.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 97.68 is above the 20-day moving average (MA) of 82.02, above the 50-day MA of 86.45, and below the 200-day MA of 147.34, indicating a neutral trend. The MACD of 3.90 indicates Negative momentum. The RSI at 63.26 is Neutral, neither overbought nor oversold. The STOCH value of 83.14 is Negative, 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
CAMT	78 Outperform	$3.07B	27.64	23.12%	1.98%	36.10%	48.15%
TTMI	70 Outperform	$2.55B	33.56	5.02%	―	11.65%	―
PAYO	69 Neutral	$2.61B	22.10	15.97%	―	14.86%	-0.94%
PAR	64 Neutral	$2.44B	―	-14.58%	―	-7.31%	89.53%
PI	63 Neutral	$2.80B	58.72	-0.78%	―	21.80%	89.21%
ALKT	63 Neutral	$2.83B	―	-11.33%	―	26.55%	38.37%
Sector *	60 Neutral	$10.77B	10.41	-6.71%	2.99%	7.69%	-13.12%

IMPINJ Corporate Events

Impinj Reports Strong 2024 Financial Results Amid Changes

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.