Impinj Intrinsic Stock Value – P/S Ratio Raises Questions About Confidence in Impinj,
January 7, 2024
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Impinj ($NASDAQ:PI), Inc., a leading provider of technology solutions for the Internet of Things (IoT), has recently been the subject of much discussion due to its Price-to-Sales ratio. This measure of a company’s stock price relative to its sales is not reflecting a high degree of confidence. This lack of investor confidence could be due to Impinj’s financial performance, which has seen losses over the last two quarters. It could also be attributed to the uncertainty surrounding the future of the IoT market, which Impinj is heavily invested in.
The Price-to-Sales ratio raises questions about the confidence of investors in Impinj, Inc. Investors are likely looking for signals that indicate the company’s potential for future growth and profitability. If Impinj is unable to provide these signals, it may be difficult for it to attract new capital and sustain its current market position. As such, it is essential for Impinj to effectively communicate its plans to investors so that they have a better understanding of the company’s strategy and what it may mean for the future.
Stock Price
On Tuesday, investors in Impinj, Inc. (IMPINJ) faced a troubling situation as the stock opened at $88.9 and closed at $86.0, down by 4.5% from the prior closing price of $90.0. Such a dramatic decline in price raised questions about how confident shareholders were in the company and its future prospects. This is even more concerning given the already high price to sales ratio for Impinj, which had previously raised worries among investors. With the stock price dropping further on Tuesday, the P/S ratio was even more concerning and continued to raise doubts about the company’s ability to deliver on its financial promises. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Impinj. More…
| Total Revenues | Net Income | Net Margin |
| 313.48 | -28.3 | -9.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Impinj. More…
| Operations | Investing | Financing |
| -56.98 | 84.98 | 10.84 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Impinj. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 363.6 | 328.8 | 1.3 |
Key Ratios Snapshot
Some of the financial key ratios for Impinj are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 29.8% | – | -8.1% |
| FCF Margin | ROE | ROA |
| -25.3% | -44.4% | -4.4% |
Analysis – Impinj Intrinsic Stock Value
At GoodWhale, we recently conducted a fundamental analysis of IMPINJ to determine the intrinsic value of its stock. After taking into account a range of factors, including the company’s financial performance, management team, industry outlook and competitive landscape, our proprietary Valuation Line determined that the intrinsic value of IMPINJ shares is around $97.8. Currently, IMPINJ stock is trading at $86.0, which is below the estimated intrinsic value and represents a fair price that is undervalued by 12.1%. We believe this presents an attractive opportunity for investors to buy IMPINJ shares at a discounted rate. We recommend that investors consider adding IMPINJ shares to their portfolios. Impinj“>More…
Peers
Its product portfolio includes RFID readers, antennas, tags, and other related hardware and software products. The company’s solutions are used in a wide variety of applications, including inventory management, supply chain management, asset tracking, and access control. Impinj also offers a wide range of services, including consulting, support, and education. The company’s products compete against those offered by Ceragon Networks Ltd, u-Blox Holding AG, and Redline Communications Group Inc.
– Ceragon Networks Ltd ($NASDAQ:CRNT)
Ceragon Networks Ltd is a global provider of high-capacity broadband wireless solutions. Its solutions enable mobile operators, fixed-line service providers, private network operators and enterprises to deliver voice, data and multimedia services. Ceragon Networks Ltd has a market cap of 158.42M as of 2022 and a Return on Equity of -0.74%. The company’s solutions are based on its proprietary Ultra High Capacity technology, which delivers high-capacity, high-availability and low-latency connectivity.
– u-Blox Holding AG ($LTS:0QNI)
u-Blox Holding AG is a Swiss technology company that specializes in positioning and wireless communication technologies for the automotive, industrial, and consumer markets. The company has a market capitalization of 781.27 million as of 2022 and a return on equity of 13.55%. u-Blox Holding AG develops and markets global navigation satellite system (GNSS) positioning products and services for automotive, industrial, and consumer applications. The company’s products include GNSS chips and modules, GNSS software, GNSS reference receivers, GNSS antenna solutions, GNSS evaluation kits, and GNSS simulators. u-Blox Holding AG also provides cellular communication products, such as cellular modules, cellular gateways, and cellular IoT products.
Summary
IMPINJ, Inc. is a leading provider of radio-frequency identification technologies and solutions. The company’s stock price has recently seen a decline, indicating a lack of investor confidence in the current performance of the company. An analysis of IMPINJ reveals that the business is experiencing weak revenue growth and operating margins are also below average.
Additionally, the company’s long-term debt is significant, suggesting that its financial health is not strong. As a result, investors may want to consider further research before investing in IMPINJ as there is considerable risk involved. A closer look at the company’s fundamentals and strategic plans will provide a better understanding of the current state of the company and its prospects for future growth.
