Impinj Stock Fair Value – IMPINJ Reports Fourth Quarter Financial Results for 2022 Fiscal Year

Earnings Overview

IMPINJ ($NASDAQ:PI) revealed their financial results for the fourth quarter of their 2022 fiscal year on December 31, 2022. Year-over-year, total revenue increased by a remarkable 99.4%, totaling USD -0.1 million, while net income reached USD 76.6 million, a 45.7% climb from the same quarter the prior year.

Transcripts Simplified

Impinj had a great 2022, with four consecutive record-revenue quarters and record adjusted EBITDA margin. Fourth quarter revenue was $76.6 million, up 12% sequentially and 46% year-over-year. Endpoint IC revenue was $58.7 million, up 15% sequentially and 53% year-over-year. Systems revenue was $17.9 million, up 4% sequentially and 26% year-over-year. Full-year 2022 revenue was $257.8 million, up 35% year-over-year.

Fourth-quarter gross margin was 53.8%, compared with 56.9% in third-quarter 2022 and 58.2% in fourth-quarter 2021. Total fourth-quarter operating expense was $29.5 million. Research and development expense was $14 million. Sales and marketing expense was $7.3 million.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Impinj. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Impinj. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Impinj. More…

Key Ratios Snapshot

Some of the financial key ratios for Impinj are shown below. More…

Market Price

Following the release of the report, IMPINJ‘s stock opened at $128.7 and closed at $125.1, down by 3.0% from its previous closing price of $129.0. Despite these difficulties, IMPINJ noted that it had maintained strong growth in its core market segments and continued to invest in product innovation and development. Overall, IMPINJ reported mixed financial results for the fourth quarter of 2022, with revenue rising but earnings per share falling short of expectations. Looking ahead, the company will be continuing to press forward with its innovation initiatives and creating new products and services in order to increase its long term success. Live Quote…

Analysis – Impinj Stock Fair Value

At GoodWhale, we take a thorough, comprehensive approach to analyzing the fundamentals of IMPINJ. After our analysis, we have found that the fair value of IMPINJ stock is around $75.1, determined from our proprietary Valuation Line. Unfortunately, the IMPINJ share is currently traded at $125.1—an overvaluation of 66.7%. This overvaluation can be attributed to a number of factors. For example, the current economic conditions have provided a boost to the stock market, and investors may be misinterpreting this surge in value as a sign that all stocks are overvalued. Additionally, investors may be believing that IMPINJ will continue to grow and show growth potential. As such, we recommend that potential investors in IMPINJ exercise caution and proceed with due diligence prior to investing. 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 reported strong financial results for the fourth quarter of their 2022 fiscal year, with total revenue increasing by 99.4% to -0.1 million and net income increasing by 45.7% to 76.6 million. Despite these impressive figures, the company’s stock price moved down the same day, indicating that investors are concerned about the profitability and sustainability of these results in the long term. As such, investors should be cautious when considering IMPINJ as an investment opportunity and should perform thorough research and analysis before making any investment decisions.