Invinity Energy Systems (AIM:IES) - Share price, News & Analysis

IES fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

IES Stock Overview

Invinity Energy Systems plc manufactures and sells vanadium flow batteries (VFB) for energy storage solutions in the United Kingdom, Canada, the United States, Australia, and China.

Rewards

Revenue is forecast to grow 58.62% per year

Risk Analysis

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

+ 2 more risks

Invinity Energy Systems Competitors

Crestchic

AIM:LOAD

UK£72.6m

SIMEC Atlantis Energy

AIM:SAE

UK£12.8m

Dewhurst Group

AIM:DWHT

UK£60.9m

Dialight

LSE:DIA

UK£83.8m

Price History & Performance

Summary of all time highs, changes and price drops for Invinity Energy Systems
Historical stock prices
Current Share Price	UK£0.39
52 Week High	UK£1.38
52 Week Low	UK£0.33
Beta	3.73
1 Month Change	-7.14%
3 Month Change	-43.07%
1 Year Change	-70.68%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-25.71%

Recent News & Updates

Jun 29

Is Invinity Energy Systems (LON:IES) In A Good Position To Deliver On Growth Plans?

We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining...

Shareholder Returns

	IES	GB Electrical	GB Market
7D	8.6%	9.0%	0.03%
1Y	-70.7%	-38.3%	-8.3%

Return vs Industry: IES underperformed the UK Electrical industry which returned -39.9% over the past year.

Return vs Market: IES underperformed the UK Market which returned -9% over the past year.

Price Volatility

Is IES's price volatile compared to industry and market?
IES volatility
IES Average Weekly Movement	10.8%
Electrical Industry Average Movement	8.9%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: IES is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: IES's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
2006	149	Larry Zulch	https://invinity.com

Invinity Energy Systems plc manufactures and sells vanadium flow batteries (VFB) for energy storage solutions in the United Kingdom, Canada, the United States, Australia, and China. The company also develops electricity grids, as well as offers electric grid services. It provides batteries for energy storage for utilities and developers, commercial and industrial, and off-grid and microgrid applications.

Invinity Energy Systems Fundamentals Summary

How do Invinity Energy Systems's earnings and revenue compare to its market cap?
IES fundamental statistics
Market Cap	UK£45.26m
Earnings (TTM)	-UK£21.37m
Revenue (TTM)	UK£3.19m

14.2x

P/S Ratio

-2.1x

P/E Ratio

Is IES overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IES income statement (TTM)
Revenue	UK£3.19m
Cost of Revenue	UK£6.23m
Gross Profit	-UK£3.05m
Other Expenses	UK£18.33m
Earnings	-UK£21.37m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.18
Gross Margin	-95.67%
Net Profit Margin	-671.02%
Debt/Equity Ratio	0%

How did IES perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is IES undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IES?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for IES. This is calculated by dividing IES's market cap by their current preferred multiple.
What is IES's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£45.26m

IES key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	6.2x
Enterprise Value/EBITDA	-0.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does IES's PS Ratio compare to its peers?

IES PS Ratio vs Peers

The above table shows the PS ratio for IES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.6x
LOAD Crestchic	2.5x	15.4%	UK£72.6m
SAE SIMEC Atlantis Energy	1.7x	n/a	UK£12.8m
DWHT Dewhurst Group	1.6x	4.0%	UK£60.9m
DIA Dialight	0.6x	8.8%	UK£83.8m
IES Invinity Energy Systems	14.2x	58.6%	UK£45.3m

Price-To-Sales vs Peers: IES is expensive based on its Price-To-Sales Ratio (14.2x) compared to the peer average (1.6x).

Price to Earnings Ratio vs Industry

How does IES's PE Ratio compare vs other companies in the GB Electrical Industry?

Price-To-Sales vs Industry: IES is expensive based on its Price-To-Sales Ratio (14.2x) compared to the UK Electrical industry average (2x)

Price to Sales Ratio vs Fair Ratio

What is IES's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IES PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	14.2x
Fair PS Ratio	0.2x

Price-To-Sales vs Fair Ratio: IES is expensive based on its Price-To-Sales Ratio (14.2x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

Share Price vs Fair Value

What is the Fair Price of IES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate IES's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate IES's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

How is Invinity Energy Systems forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

27.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IES is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IES is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IES is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IES's revenue (58.6% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: IES's revenue (58.6% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if IES's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Invinity Energy Systems performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-33.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IES is currently unprofitable.

Growing Profit Margin: IES is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: IES is unprofitable, and losses have increased over the past 5 years at a rate of 33% per year.

Accelerating Growth: Unable to compare IES's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IES is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (14.2%).

Return on Equity

High ROE: IES has a negative Return on Equity (-41.71%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Invinity Energy Systems's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: IES's short term assets (£40.4M) exceed its short term liabilities (£15.0M).

Long Term Liabilities: IES's short term assets (£40.4M) exceed its long term liabilities (£420.0K).

Debt to Equity History and Analysis

Debt Level: IES is debt free.

Reducing Debt: IES currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: IES has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: IES has less than a year of cash runway if free cash flow continues to reduce at historical rates of 29.5% each year

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Dividend

What is Invinity Energy Systems's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate IES's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IES's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IES's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IES's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as IES has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure

CEO

Larry Zulch (64 yo)

2.33yrs

Tenure

Mr. Lawrence A. Zulch, also known as Larry, has been Chief Executive Officer and Director of Invinity Energy Systems plc since April 02, 2020. He had been Chief Executive Officer and Director of redT energ...

Leadership Team

Experienced Management: IES's management team is considered experienced (2.2 years average tenure).

Board Members

Experienced Board: IES's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: IES insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31