One-glance verdict
Undervalued
$9.42 our estimate vs market $2.62
72% below our estimate, below the bear case
Fundamentals snapshot
Haivision Systems Inc.
HAIVF · PNK · Technology · Software - Infrastructure
Current price
$2.62
52-week range
$2.58 - $7.67
Market cap
$70.14M
Balance sheet
Healthy
0.49x Concerning
Net cash $72.97K. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 6.3% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from -2.3% to -4.9% over 3 years.
- Risk Return on equity was -0.8% last year — the company lost money on shareholders' equity.
What this company does
Haivision Systems Inc.
Haivision sells technology and equipment that lets organizations stream secure, high-quality live video over the internet with almost no delay. They make money primarily from customers with zero tolerance for failure, such as military agencies for surveillance or major news broadcasters for live events. This matters because these clients rely on Haivision's specialized systems for critical situations where instant, clear video is essential for making important decisions.
How the company got here
Haivision was founded in 2004 to solve a tricky problem: how to send high-quality live video over computer networks without delays or glitches. [4, 9] It grew by making a series of strategic acquisitions (buying other companies) to bring in new technology, such as adding mobile video streaming capabilities by purchasing a company called Aviwest. [2, 5] A key turning point was inventing the Secure Reliable Transport (SRT) protocol, a now widely-used method for streaming video securely over the public internet, which it later gave away as open-source technology for anyone to use. [4, 9, 17] The company went public on the Toronto Stock Exchange in 2020, and its technology has won multiple Emmy® Awards. [9, 10]
What it actually does
Think of Haivision as the plumbing that carries live video from a source, like a camera at a sporting event or on a military drone, to a destination, like your TV or a command center. [1, 4] They build the hardware and software that makes sure this video stream is fast, secure, and high-quality, even over unpredictable networks like the internet. [7, 18] Their products are considered "mission-critical," which means they are used by organizations like major news broadcasters, government agencies, and large corporations for situations where the video feed absolutely cannot fail. [4, 10, 11] For example, they help power the video for major sporting events, corporate all-hands meetings, and military intelligence gathering. [9, 10]
Wired & On-Premise Video Solutions
This part of the business focuses on sending video over stable, wired networks, like the internet connection in an office or a dedicated broadcast network. It includes hardware boxes called encoders (devices that convert video from a camera into a digital stream) and decoders (which turn the stream back into a video you can watch). [4] Customers like large companies or universities pay for these systems to securely distribute live presentations, training, or TV channels within their private networks. This is the company's foundational business, providing the core infrastructure for high-quality video inside an organization.
Mobile & Wireless Video Contribution
This segment is all about sending live video from the field, where there's no stable wired internet connection. [3, 6] It relies on technology that can combine multiple cellular signals (like 4G and 5G) to create a single, reliable connection for streaming, a process often called bonding. [3, 6] News reporters, sports camera operators, and first responders use this to send high-quality live video from anywhere with a cell signal. This is a major growth area for the company, built largely on its acquisition of a company called Aviwest, which specializes in this mobile technology. [5]
What management is betting on now
The company's strategy is focused on being the leader in both wired and wireless live video. [6] A huge bet is on 5G technology, which allows for even higher quality and more reliable video streaming from mobile locations, a key reason they acquired Aviwest. [3, 5] They are also heavily focused on enabling remote production, which lets broadcasters produce complex live shows, like sporting events, without having to send a huge crew to the venue. [17, 19] Finally, Haivision continues to pursue strategic acquisitions (buying other tech companies) to bring in new capabilities and expand its reach in mission-critical markets like defense and global live events. [7]
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $9.42 vs current price $2.62
Our most-likely fair value is $9.42 a share — about 259.5% above today's price of $2.62, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $72,972 - more cash than debt. Interest coverage 0.5x.
Net debt
$-72.97K
Interest coverage
0.49x
Haivision Systems Inc.'s profit covers its interest bill about 0.5 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
HAIVF
BASELINE
Haivision Systems Inc.
Total debt $13.98M Interest coverage 0.49x This is the baseline the peer rows are being compared against.
Total debt $43.51M Interest coverage -1.62x -100% vs HAIVF This peer has almost no interest-payment cushion compared with HAIVF.
Total debt $130.12M Interest coverage 4.48x +820% vs HAIVF Carries about 9.2x more debt cushion than HAIVF.
What you should know
The case for and against HAIVF
2 Rewards
2 Risks
Rewards
-
Revenue grew 6.3% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Operating margin compressed from -2.3% to -4.9% over 3 years.
-
Return on equity was -0.8% last year — the company lost money on shareholders' equity.
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
—
P/B
1.07x
P/S
0.49x
EV/EBITDA
41.74x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
70.6%
Operating margin
-4.9%
Net margin
-0.5%
ROE
-0.8%
ROA
-0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.21x
Current ratio
1.44x
Quick ratio
0.97x
Total debt
$13.98M
Total cash
$14.06M
Growth
How the business has been compounding
Revenue TTM
$101.52M
Revenue 5Y CAGR
3.1%
EPS TTM
-0.02
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$6.20M
Free CF TTM
$4.96M
FCF margin
4.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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