One-glance verdict
Overvalued
$-0.52 our estimate vs market $2.64
Wall Street consensus: $8.40 (-1,729.2% lower than our fair-value estimate)
612% below our estimate, beyond the bull case
Fundamentals snapshot
PowerFleet, Inc.
AIOT · NGM · Technology · Software - Application
Current price
$2.64
52-week range
$2.55 - $5.88
Market cap
$354.36M
Balance sheet
Distressed
0.71x Concerning
Net debt $262.79M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 1.5% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Net debt grew 2971.0% over 3 years.
- Risk Return on equity was -3.8% last year — the company lost money on shareholders' equity.
What this company does
PowerFleet, Inc.
PowerFleet sells smart tracking systems that help companies manage their fleets of vehicles, trailers, and other important equipment. It makes most of its money from software subscriptions, which creates reliable recurring revenue (income that comes in consistently over time, like a phone bill). This technology helps customers cut costs on things like fuel, improve safety, and ensure their physical assets are being used efficiently.
How the company got here
PowerFleet started as I.D. Systems in 1993, focusing on tracking and managing industrial vehicles using wireless technology. A major turning point was in 2019 when it combined with an Israeli company, Pointer Telocation, and officially changed its name to PowerFleet. This move expanded its reach internationally and added more vehicle and asset-tracking capabilities to its portfolio. More recently, in 2024, PowerFleet completed a significant merger with MiX Telematics, which greatly increased its size and global presence in the fleet management industry.
What it actually does
PowerFleet provides technology that helps businesses keep track of their vehicles and other important assets, like trailers and forklifts. Think of it like a very advanced GPS and data system for a company's entire fleet of equipment. This system uses a combination of hardware devices installed on the assets and specialized software to collect and analyze data. This helps companies improve safety, use their equipment more efficiently, and ensure they are following regulations, ultimately saving them time and money.
On-Road IoT
This part of the business focuses on solutions for vehicles that travel on public roads, like trucks and delivery vans. It provides services such as vehicle tracking, monitoring driver behavior (like speeding or harsh braking), and managing fuel consumption. Customers, which include transportation and logistics companies, pay for these services through subscriptions to gain visibility and control over their fleets. This segment is a core part of PowerFleet's business, especially after the combination with MiX Telematics.
On-Site IoT
This segment provides solutions for managing assets within a specific location, such as a warehouse, a manufacturing plant, or a construction site. It helps companies track industrial vehicles like forklifts and other equipment to improve safety and efficiency in these contained environments. For example, it can help prevent accidents or ensure that equipment is being used effectively. This is a foundational part of the company, tracing back to its origins as I.D. Systems.
Asset IoT
This business line is dedicated to tracking and monitoring a wide range of company assets that might not be vehicles, such as trailers, containers, and other valuable equipment. The technology allows a company to know where these assets are in real-time and monitor their condition. Customers in industries like shipping and construction pay for this service to prevent theft, improve utilization (the amount of time an asset is used), and have better overall control of their property.
AI Video
A growing part of PowerFleet's offering involves using artificial intelligence (AI) with video cameras installed in vehicles. This technology can automatically detect risky driving behaviors and provide real-time alerts to drivers and managers. For example, it can identify distracted driving or when a driver is following another vehicle too closely. Companies pay for this service to improve driver safety, reduce accidents, and lower their insurance costs.
What management is betting on now
Management's current focus is on successfully integrating the recently acquired MiX Telematics to create a more unified and efficient company. A key part of their strategy is to expand the use of their 'Unity' platform, which is designed to bring together data from all of a customer's different assets into one place. They are also focused on increasing their recurring revenue (the predictable income from subscriptions) by selling more services, like video safety and data analytics, to their large combined customer base. The ultimate goal is to become a leading software- and data-focused company in the global market for connected vehicle and asset intelligence.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$-8.04M
FY2025 Q3
$-12.25M
FY2025 Q4
$10.14M
FY2026 Q1
$-3.39M
FY2026 Q2
$1.18M
FY2026 Q3
$4.94M
FY2026 Q4
$6.11M
FY2027 Q1
$3.57M
Revenue
$110.79M
Net income
$-8.44M
Diluted EPS
-0.06
Operating cash flow
$8.44M
Free cash flow
$3.57M
Fetching…
Sources
Revenue
$114.49M
Net income
$-2.67M
Diluted EPS
-0.01
Operating cash flow
$10.01M
Free cash flow
$6.11M
Fetching…
Sources
Revenue
$113.49M
Net income
$-3.36M
Diluted EPS
-0.03
Operating cash flow
$10.21M
Free cash flow
$4.94M
Fetching…
Sources
Revenue
$111.68M
Net income
$-4.29M
Diluted EPS
-0.03
Operating cash flow
$5.52M
Free cash flow
$1.18M
Fetching…
Sources
Revenue
$104.12M
Net income
$-10.23M
Diluted EPS
-0.08
Operating cash flow
$4.72M
Free cash flow
$-3.39M
Fetching…
Sources
Revenue
$103.64M
Net income
$-12.44M
Diluted EPS
-0.09
Operating cash flow
$13.54M
Free cash flow
$10.14M
Fetching…
Sources
Revenue
$106.43M
Net income
$-14.35M
Diluted EPS
-0.11
Operating cash flow
$-6.09M
Free cash flow
$-12.25M
Fetching…
Sources
Revenue
$77.02M
Net income
$-1.89M
Diluted EPS
-0.02
Operating cash flow
$-3.18M
Free cash flow
$-8.04M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-0.52 vs current price $2.64
Wall Street consensus is the average analyst price target: $8.40 (-1,729.2% lower than our fair-value estimate).
Our most-likely fair value is $-0.52 a share — about 119.5% below today's price of $2.64, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $262.8M. Interest coverage 0.7x.
Net debt
$262.79M
Interest coverage
0.71x
PowerFleet, Inc.'s profit covers its interest bill about 0.7 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
AIOT
BASELINE
PowerFleet, Inc.
Total debt $295.61M Interest coverage 0.71x This is the baseline the peer rows are being compared against.
Total debt $64.97M Interest coverage 18.31x +2,475% vs AIOT Carries about 25.7x more debt cushion than AIOT.
Total debt $2.37M Interest coverage -23.95x -100% vs AIOT This peer has almost no interest-payment cushion compared with AIOT.
Total debt $9.69M Interest coverage -11.71x -100% vs AIOT This peer has almost no interest-payment cushion compared with AIOT.
Total debt $26.55M Interest coverage -11.33x -100% vs AIOT This peer has almost no interest-payment cushion compared with AIOT.
What you should know
The case for and against AIOT
2 Rewards
3 Risks
Rewards
-
Revenue grew 1.5% last year.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 2971.0% over 3 years.
-
Return on equity was -3.8% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 6.2% (peer median: 7.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
9.96x
P/B
0.72x
P/S
0.79x
EV/EBITDA
7.18x
PEG ratio
0.80x
Profitability
How much profit each dollar creates
Gross margin
55.7%
Operating margin
1.7%
Net margin
-4.2%
ROE
-3.8%
ROA
2.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.60x
Current ratio
1.10x
Quick ratio
0.87x
Total debt
$295.61M
Total cash
$32.82M
Growth
How the business has been compounding
Revenue TTM
$450.45M
Revenue 5Y CAGR
34.4%
EPS TTM
-0.14
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$34.18M
Free CF TTM
$8.84M
FCF margin
2.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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