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Inventronics Ltd (TSE:IVX)
:IVX
Canadian Market

Inventronics (IVX) AI Stock Analysis

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Inventronics

(IVX)

Rating:68Neutral
Price Target:
C$1.00
▲(38.89%Upside)
Inventronics' overall stock score is driven by strong recent corporate performance and positive market momentum. Despite historical financial challenges, the company has shown significant improvement in Q1 2025 results, indicating a potential recovery. The technical indicators suggest bullish market sentiment. However, the high P/E ratio suggests the stock may be overvalued, and the lack of a dividend yield could deter some investors.

Inventronics (IVX) vs. iShares MSCI Canada ETF (EWC)

Inventronics Business Overview & Revenue Model

Company DescriptionInventronics (IVX) is a leading global provider of advanced LED driver solutions. The company specializes in designing, manufacturing, and distributing a wide range of high-efficiency LED drivers and related products for various applications, including outdoor and industrial lighting. Inventronics is committed to delivering innovative, reliable, and energy-efficient solutions that support the growing demand for sustainable lighting technologies worldwide.
How the Company Makes MoneyInventronics makes money primarily through the sale of its LED driver products. The company's revenue model is centered around manufacturing and distributing high-performance LED drivers to lighting manufacturers, distributors, and end-users. Key revenue streams include sales from its diverse product lines, which cater to different lighting applications such as street lighting, horticultural lighting, and commercial lighting. Additionally, Inventronics' earnings are bolstered by strategic partnerships with major lighting companies and ongoing investments in research and development to innovate and improve their product offerings, thereby maintaining a competitive edge in the market.

Inventronics Financial Statement Overview

Summary
Inventronics is facing significant challenges with declining revenue and profitability. Revenue decreased significantly from $8.86M in 2023 to $6.31M in 2024, and net profit margins turned negative. The balance sheet shows moderate leverage with a debt-to-equity ratio close to 1.0, but reduced equity and negative return on equity are concerning. Cash flow remains relatively stable with effective capital expenditure management.
Income Statement
35
Negative
Inventronics has exhibited a decrease in total revenue from $8.86M in 2023 to $6.31M in 2024, indicating a negative revenue growth trend. The gross profit margin has also decreased significantly from 19.14% in 2023 to 15.11% in 2024. Net profit margin turned negative, reflecting a loss of $62K in 2024. These factors suggest a challenging financial environment with declining sales and profitability.
Balance Sheet
60
Neutral
The debt-to-equity ratio has improved slightly from 0.93 in 2023 to 0.99 in 2024, indicating a moderate leverage position. However, the equity ratio decreased from 46.17% to 39.67%, suggesting reduced equity in the asset base. The return on equity turned negative due to net losses, raising concerns about shareholder returns.
Cash Flow
70
Positive
Despite a decrease in operating cash flow from $1.45M in 2023 to $924K in 2024, free cash flow increased from $519K to $711K, reflecting effective capital expenditure management. The operating cash flow to net income ratio is strong, indicating good cash generation relative to reported losses.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.31M8.86M14.24M9.84M5.64M
Gross Profit953.00K1.70M4.12M2.30M1.07M
EBITDA247.00K852.00K3.18M1.66M929.00K
Net Income-62.00K369.00K2.09M1.89M541.00K
Balance Sheet
Total Assets5.71M6.09M6.03M5.23M3.74M
Cash, Cash Equivalents and Short-Term Investments836.00K933.00K379.00K216.00K131.00K
Total Debt2.25M2.61M2.05M2.10M2.13M
Total Liabilities3.45M3.28M3.13M2.94M2.43M
Stockholders Equity2.27M2.81M2.89M2.29M1.31M
Cash Flow
Free Cash Flow711.00K519.00K1.97M1.21M296.00K
Operating Cash Flow924.00K1.45M2.29M1.34M563.00K
Investing Cash Flow-213.00K-931.00K-327.00K-126.00K-267.00K
Financing Cash Flow-808.00K-82.00K-1.80M-1.13M-217.00K

Inventronics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.72
Price Trends
50DMA
0.63
Positive
100DMA
0.60
Positive
200DMA
0.65
Positive
Market Momentum
MACD
0.02
Positive
RSI
52.85
Neutral
STOCH
48.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IVX, the sentiment is Neutral. The current price of 0.72 is below the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.63, and above the 200-day MA of 0.65, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:IVX.

Inventronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSIVX
68
Neutral
C$3.53M31.254.29%4.99%112.84%
65
Neutral
$10.65B15.525.51%1.92%2.72%-26.34%
47
Neutral
C$3.45M
-71.89%12.69%
TSCBI
34
Underperform
C$3.35M-30.01%-53.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:IVX
Inventronics
0.72
0.04
5.88%
TSE:CBI
Colibri Resource
0.15
-0.07
-31.82%
TSE:RGEN
Delta Cleantech
0.04
0.02
100.00%

Inventronics Corporate Events

Financial Disclosures
Inventronics Reports Strong Q1 2025 Financial Results
Positive
May 27, 2025

Inventronics Limited reported a significant increase in its 2025 Q1 financial results, with net earnings of $183,000 on revenue of $2,427,000, compared to $8,000 on $1,444,000 in the same period of 2024. This growth is attributed to increased demand for enclosures as customers have reduced their excess inventories, indicating a positive impact on the company’s operations and market positioning.

Executive/Board ChangesBusiness Operations and Strategy
Inventronics Grants Stock Options to Management and Directors
Neutral
May 20, 2025

Inventronics Limited announced the grant of options to purchase common shares to its management team and Board of Directors. This strategic move involves granting a total of 430,000 options with an exercise price of $0.45, vesting over two years, and expiring in five years, potentially impacting the company’s stock performance and aligning management interests with shareholder value.

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.Date of analysis: Jun 10, 2025