NasdaqCM:INVE

Stock Analysis Report

Executive Summary

Identiv, Inc. operates as a security technology company that secures data, physical places, and things worldwide.

Rewards

Trading at 6.1% below its fair value

Earnings are forecast to grow 114.19% per year

Earnings have grown 35.6% per year over the past 5 years

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Identiv's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INVE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.6%

INVE

-1.6%

US Electronic

-1.3%

US Market


1 Year Return

13.6%

INVE

23.9%

US Electronic

22.0%

US Market

Return vs Industry: INVE underperformed the US Electronic industry which returned 30.2% over the past year.

Return vs Market: INVE underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

INVEIndustryMarket
7 Day-3.6%-1.6%-1.3%
30 Day6.7%1.2%1.8%
90 Day30.2%7.9%9.3%
1 Year13.6%13.6%25.1%23.9%24.6%22.0%
3 Year76.2%76.2%48.0%43.8%49.2%39.6%
5 Year-51.8%-51.8%88.7%79.2%77.9%58.3%

Price Volatility Vs. Market

How volatile is Identiv's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Identiv undervalued compared to its fair value and its price relative to the market?

14.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INVE ($6.7) is trading below our estimate of fair value ($7.13)

Significantly Below Fair Value: INVE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: INVE is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: INVE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INVE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INVE is overvalued based on its PB Ratio (3.1x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

How is Identiv forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

114.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INVE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: INVE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: INVE's is expected to become profitable in the next 3 years.

Revenue vs Market: INVE's revenue (13.2% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: INVE's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Identiv performed over the past 5 years?

35.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INVE is currently unprofitable.

Growing Profit Margin: INVE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: INVE is unprofitable, but has reduced losses over the past 5 years at a rate of 35.6% per year.

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

Earnings vs Industry: INVE is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (53.6%).


Return on Equity

High ROE: INVE has a negative Return on Equity (3.54%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Identiv's financial position?


Financial Position Analysis

Short Term Liabilities: INVE's short term assets ($47.1M) exceed its short term liabilities ($34.4M).

Long Term Liabilities: INVE's short term assets ($47.1M) exceed its long term liabilities ($5.3M).


Debt to Equity History and Analysis

Debt Level: INVE's debt to equity ratio (40.3%) is considered high.

Reducing Debt: INVE's debt to equity ratio has increased from 26.3% to 40.3% over the past 5 years.


Balance Sheet

Inventory Level: INVE has a high level of physical assets or inventory.

Debt Coverage by Assets: INVE's debt is covered by short term assets (assets are 3.2x debt).


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: INVE has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if INVE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Identiv's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INVE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Identiv's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Steve Humphreys (58yo)

4.3yrs

Tenure

US$548,297

Compensation

Mr. Steven Humphreys, also known as Steve, has been the Chief Executive Officer of Identiv, Inc. since September 09, 2015. From November 2011 to December 2014, Mr. Humphreys served as the Chief Executive O ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD548.30K) is about average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: INVE's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

63yo

Average Age

Experienced Board: INVE's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$39,48017 Jun 19
Steven Humphreys
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares8,000
Max PriceUS$4.98
BuyUS$10,18017 Jun 19
Steven Humphreys
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares2,000
Max PriceUS$5.09
BuyUS$99,80013 Jun 19
Gary Kremen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceUS$4.99
BuyUS$20,08912 Jun 19
Gary Kremen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,166
Max PriceUS$4.90

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.5%.


Management Team

  • Steve Humphreys (58yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$548.30k
  • Manfred Mueller (49yo)

    COO and GM of Identity & Credentials

    • Tenure: 6.3yrs
    • Compensation: US$934.15k
  • Sandra Wallach (54yo)

    CFO & Secretary

    • Tenure: 2.9yrs
    • Compensation: US$469.63k

Board Members

  • Steve Humphreys (58yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$548.30k
  • Jim Ousley (73yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: US$367.48k
  • Nina Shapiro (70yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$248.75k
  • Gary Kremen (55yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$248.75k
  • Robin Braun (63yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

Identiv, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Identiv, Inc.
  • Ticker: INVE
  • Exchange: NasdaqCM
  • Founded: 1990
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$106.084m
  • Shares outstanding: 16.89m
  • Website: https://www.identiv.com

Number of Employees


Location

  • Identiv, Inc.
  • 2201 Walnut Avenue
  • Suite 100
  • Fremont
  • California
  • 94538
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INVENasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDOct 1997
INVNDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1997
INVNDB (Deutsche Boerse AG)COM USD0.01(POST REV SPLIT)DEEURMay 2014

Biography

Identiv, Inc. operates as a security technology company that secures data, physical places, and things worldwide. Its Premises segment offers modular Hirsch MX controllers that allow customers to start with a small system and expand over time; Hirsch Velocity software platform for centralized management of access and security operations across an organization; federal identity, credential and access management architecture, an access control system; TouchSecure door readers that provide various features to support security standards; and global services to support system design, deployment, and managed services across customers premises security lifecycle. Its Identity segment provides smart card readers, which include various contact, contactless, portable, and mobile smart card readers, as well as tokens and terminals to enable logical access, and security and identification applications, such as national ID, payment, e-health, and e-government. Its Credentials segment provides NFC and radio frequency identification products, including inlays and inlay-based, and other cards; labels, tags, and stickers, as well as other radio frequency and integrated circuits components for use in various applications, such as virtual reality, games, loyalty cards, mobile payment systems, transit and event ticketing, and brand authenticity from pharmaceuticals to consumer goods, hospital resource management, cold-chain management, and others; and access cards. Identiv, Inc. markets and sells its products through original equipment manufacturers, dealers, systems integrators, value added resellers, resellers, and Internet, as well as directly to end users. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/24 23:43
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.