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Identive Group (INVE)
:INVE
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Identiv
(NASDAQ:INVE)
47Neutral
Positive Factors
Financial Position
Identiv ended with a strong cash position of $146M, with a clear capital allocation plan including organic investments, strategic M&A, working capital, and a buyback.
Manufacturing and Productivity
The manufacturing transition from Singapore and Thailand remains largely on track, with expectations to reach full productivity in Thailand soon.
Strategic Growth
Identiv remained bullish on organic and inorganic growth opportunities and was optimistic about its position within RFID, NFC, HF, and BLE technology.
Negative Factors
Enterprise Value
The analyst sees the current negative enterprise value as an attractive risk/reward opportunity for patient investors.
Gross Margin
The company expects its gross margin to improve to 26%-28% after shifting production to Thailand and achieving full productivity.
Identiv (INVE) vs. S&P 500 (SPY)
Market Cap
$75.58M
Dividend YieldN/A
Average Volume (3M)55.21K
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue Growth-77.64%
EPS Growth-243.23%
CountryUS
Employees166
SectorTechnology
Sector Strength65
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.21
Shares Outstanding23,617,378
10 Day Avg. Volume62,684
30 Day Avg. Volume55,211
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)0.48
Price to Sales (P/S)0.00
P/FCF Ratio-4.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.50Price Target Upside71.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Identiv Business Overview & Revenue Model
Company DescriptionIdentiv, Inc. operates as a security technology company that secures things, data, and physical places in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Identity and Premises. The Identity segment offers products and solutions that enables secure access to information serving the logical access and cyber security markets, as well as protecting connected objects and information using radio-frequency identification embedded security. The Premises segment provides solutions for premises security market, such as access control, video surveillance, analytics, audio, access readers, and identities to government facilities, schools, utilities, hospitals, stores, apartment buildings, and shops. The company sells its products through dealers, systems integrators, value added resellers, and resellers. The company was formerly known as Identive Group, Inc. and changed its name to Identiv, Inc. in May 2014. Identiv, Inc. was founded in 1990 and is headquartered in Fremont, California.
How the Company Makes MoneyIdentiv makes money through the sale of its physical security and identification products and services. The company's revenue streams include product sales, which cover access control systems, RFID inlays and tags, and secure credentials. Additionally, Identiv generates income from services such as software licenses and subscriptions for identity management solutions, as well as maintenance and support services. Key factors contributing to its earnings include strategic partnerships and contracts with government agencies and private sector clients, leveraging its expertise in security and identification technologies.
Identiv Financial Statement Overview
Summary
Identiv is experiencing financial instability with fluctuating revenue and profitability metrics. The balance sheet is solid, underscored by a high equity base and low leverage, but cash flow issues persist, raising concerns about operational efficiency. The recent spike in net income requires further scrutiny to understand its impact on long-term financial health.Income Statement
Identiv has shown inconsistent revenue growth, with a significant decline in revenue in the most recent year compared to previous years. The company has struggled with profitability, reflected in negative EBIT and EBITDA margins. However, a substantial net income reported in the latest year indicates a potential turnaround, although this may be anomalous and should be further investigated.45
Neutral
Balance Sheet
The balance sheet reveals a strong equity position, with a high equity ratio and low debt-to-equity ratio, suggesting a stable financial structure. However, the company's return on equity is volatile, and recent improvements in net income might not be sustainable.60
Neutral
Cash Flow
Identiv's cash flow situation is mixed. Despite reporting negative free cash flow, the company has managed to improve its cash and equivalents position significantly in the latest year. The operating cash flow to net income and free cash flow to net income ratios are concerning, indicating potential cash flow challenges.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 26.63M | 116.38M | 112.92M | 103.77M | 86.92M | Gross Profit |
| 340.00K | 42.16M | 40.94M | 37.07M | 33.68M | EBIT |
| -27.96M | -4.34M | -131.00K | -530.00K | -1.99M | EBITDA |
| -24.55M | -2.17M | 2.12M | 4.10M | -257.00K | Net Income Common Stockholders |
| 74.82M | -5.49M | -392.00K | 1.62M | -5.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 135.65M | 23.31M | 16.65M | 28.55M | 11.41M | Total Assets |
| 163.22M | 109.72M | 102.77M | 96.66M | 78.68M | Total Debt |
| 2.02M | 15.38M | 4.56M | 2.21M | 3.55M | Net Debt |
| -133.63M | -7.93M | -12.09M | -26.35M | -7.86M | Total Liabilities |
| 9.16M | 35.45M | 27.37M | 22.15M | 44.49M | Stockholders Equity |
| 154.07M | 74.27M | 75.39M | 74.51M | 34.19M |
| Cash Flow | Free Cash Flow | |||
| -16.93M | -3.13M | -11.71M | -859.00K | -3.33M | Operating Cash Flow |
| -15.43M | 1.16M | -7.81M | 1.23M | -1.77M | Investing Cash Flow |
| 141.49M | -4.15M | -3.87M | -1.48M | -1.56M | Financing Cash Flow |
| -13.63M | 10.07M | -1.04M | 19.34M | 4.85M |
Identiv Technical Analysis
Negative
3.20
Price Trends
3.25
Negative
3.44
Negative
3.54
Negative
Market Momentum
>-0.01
Positive
47.89
Neutral
24.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVE, the sentiment is Negative. The current price of 3.2 is below the 20-day moving average (MA) of 3.24, below the 50-day MA of 3.25, and below the 200-day MA of 3.54, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 24.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INVE.
Identiv Risk Analysis
Identiv disclosed 31 risk factors in its most recent earnings report. Identiv 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
Identiv Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $11.39B | 10.50 | -6.42% | 2.97% | 7.77% | -11.17% | |
50 Neutral | $56.35M | ― | -44.43% | ― | -4.34% | -82.08% | |
49 Neutral | $98.34M | ― | -68.97% | ― | -9.27% | 19.30% | |
47 Neutral | $35.48M | ― | -28.16% | ― | -40.27% | -306.30% | |
47 Neutral | $75.58M | ― | -22.95% | ― | -77.64% | -243.23% | |
46 Neutral | $66.51M | 16.92 | -17.45% | ― | 2.16% | -404.03% | |
41 Neutral | $70.49M | ― | 33.98% | ― | -17.08% | -223.70% |
* Technology Sector Average
Performance Comparison
INVE
Identiv
3.20
-1.08
-25.23%
ALOT
AstroNova
9.02
-8.58
-48.75%
QMCO
Quantum
11.13
0.49
4.61%
TACT
Transact Technologies
3.39
-0.31
-8.38%
OSS
One Stop Systems
2.61
0.24
10.13%
MKFG
Markforged Holding
4.74
-0.46
-8.85%
Identiv Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 1.91%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there are significant strategic partnerships, product development, and operational transitions underway, financial challenges persist with declining revenue, gross margins, and continued losses. Uncertainty due to tariffs also poses risks.Q1-2025 Updates
Positive Updates
Strategic Partnerships and Product Development
Identiv announced a new strategic partnership with Tag-N-Trac for IoT solutions in pharmaceutical supply chains and is collaborating with InPlay on a new portfolio of BLE-enabled smart labels for logistics applications.
Transition to Lower Cost Production
Operational progress was made on transitioning production from Singapore to a lower cost facility in Thailand, with expectations to complete this by the end of Q2 2025.
Expansion of BLE and Multi-Component Platform
Solid progress in expanding BLE technology, with several significant projects in the pipeline, supporting the company's roadmap and innovation in IoT.
Strong Financial Position
Exited Q1 2025 with $132.7 million in cash, cash equivalents, and restricted cash, enabling pursuit of organic and inorganic growth initiatives.
Negative Updates
Revenue Decline
Net revenue for Q1 2025 was $5.3 million, down from $6.7 million in Q1 2024, primarily due to the exit of low-margin business.
Gross Margin Decrease
Year-over-year decrease in gross margin due to dual manufacturing overhead and decreased utilization, with GAAP and non-GAAP gross margins at 2.5% and 10.8% respectively for Q1 2025.
Continued Net Loss
GAAP net loss from continuing operations was $4.8 million for Q1 2025, compared to a net loss of $5.4 million in Q1 2024.
Tariff Impact and Uncertainty
Approximately 25% of the business exposed to US import tariffs, with potential impacts on customer demand and ongoing high volatility expected in the market.
Company Guidance
During Identiv's First Quarter 2025 Earnings Call, the company provided guidance that included expectations of continued market uncertainty and high volatility due to global economic conditions, such as shifting trade policies and a softening global GDP outlook. Identiv reported $5.3 million in net revenue, slightly above its quarter one guidance, yet experienced a year-over-year decrease compared to $6.7 million in Q1 2024. Gross margin for the quarter was 2.5% on a GAAP basis and 10.8% on a non-GAAP basis, both lower than the previous year, primarily due to dual manufacturing overhead costs and decreased utilization. Operating expenses totaled $5.6 million on a GAAP basis and $4.5 million on a non-GAAP basis, reflecting targeted investments in growth initiatives. The company ended the quarter with $132.7 million in cash, cash equivalents, and restricted cash, and projected net revenue for Q2 2025 in the range of $4.9 million to $5.3 million. Identiv continues to execute its P-A-T strategic framework, focusing on strengthening its core business, accelerating growth through high-value applications, and transforming the business into a market leader in specialty IoT solutions.Identiv Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Identiv Appoints Miguel A. Lopez to Board
Neutral
Apr 15, 2025
Identiv, Inc. announced the appointment of Miguel A. Lopez to its board of directors effective April 9, 2025. Lopez, who has held significant financial leadership roles in various companies, will serve until the 2026 annual meeting of stockholders. In addition, the company is moving forward with plans to declassify its board, with conditional resignations from several directors contingent upon stockholder approval of an amendment to the company’s certificate of incorporation. This move aims to enhance corporate governance practices by allowing all directors to stand for election annually if the amendment is approved.
Spark’s Take on INVE Stock
According to Spark, TipRanks’ AI Analyst, INVE is a Neutral.
Identiv’s overall stock score of 49 reflects a challenging financial environment with inconsistent revenue and profitability metrics, alongside a bearish technical outlook. Despite strategic shifts and solid balance sheet, valuation issues persist, with significant concerns around current unprofitability and cash flow challenges. The potential for future growth exists if production transitions and strategic partnerships are successfully executed.
To see Spark’s full report on INVE stock, click here.
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.