One-glance verdict
Undervalued
$5.00 our estimate vs market $2.47
Wall Street consensus: $3.55 (-29.1% lower than our fair-value estimate)
51% below our estimate, below the bear case
Fundamentals snapshot
Identiv, Inc.
INVE · NCM · Industrials · Building Products & Equipment
Current price
$2.47
52-week range
$2.42 - $5.30
Market cap
$59.86M
Balance sheet
Healthy
-48.30x Concerning
Net cash $118.70M. 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 13.0% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Operating margin compressed from -0.1% to -96.0% over 3 years.
- Risk Return on equity was -10.9% last year — the company lost money on shareholders' equity.
What this company does
Identiv, Inc.
Identiv makes tiny electronic tags that are put inside physical products like medicine bottles or sports jerseys to give them a unique digital identity. This allows other businesses to track their items through the supply chain (the entire journey from factory to customer), confirm products are authentic, and even connect them to the internet. The company makes money by selling these smart tags to a wide range of industries, from healthcare to luxury goods.
How the company got here
Identiv began in 1990 as a German company called SCM Microsystems and went public in 1997. It grew over the years by merging with and acquiring other technology companies, including Hirsch Electronics for physical security and 3VR for video analytics. These deals shaped its focus on both digital identification and securing physical buildings. The company changed its name from Identive Group to Identiv, Inc. in 2014 to reflect this combined identity.
What it actually does
Identiv makes technology that gives a unique digital identity to physical objects, a concept often called the 'Internet of Things' (IoT). It creates tiny electronic tags and labels using technologies like RFID (Radio Frequency Identification, which uses radio waves to read information from a tag) and NFC (Near Field Communication, the same technology used for tap-to-pay with your phone). These tags can be embedded in anything from a pill bottle to track medication use, to a luxury handbag to prove it's authentic, or in a shipping container to monitor its journey. This allows a physical item to communicate with the digital world, providing information about its location, status, or authenticity.
Identity
This part of the business, which made up more than half of the company's sales, created the small, smart tags and labels that attach to products. Companies in healthcare, logistics (the business of transporting goods), and consumer products would buy these tags to track their items. For example, a pharmaceutical company would pay Identiv for tiny RFID tags to put on medicine vials, helping to ensure they are not counterfeit and are stored at the right temperature. This segment was the core of Identiv's 'Internet of Things' business.
Premises
This segment focused on physical security for buildings and made up the rest of the company's revenue. It sold products like door access card readers, video surveillance systems, and the software needed to manage them. A customer, like a government agency or a university, would pay Identiv to install and maintain a system that controls who can enter certain buildings or areas. This business also included advanced video analytics (using software to automatically spot security events, like someone leaving a bag unattended).
What management is betting on now
Identiv has recently made a major strategic pivot by selling its entire operating business, including both the Identity and Premises segments. The company, now renamed INVE Technologies, plans to use the significant cash from this sale to acquire other companies, specifically those that sell SaaS (Software as a Service, where customers pay a subscription for software instead of buying it once). Management is betting that it can create more value for shareholders by buying and building a portfolio of software businesses focused on 'physical AI' (Artificial Intelligence that interacts with the physical world) rather than continuing to manufacture hardware. As part of the deal, the company also received a stake in the firm that bought its assets, allowing it to still benefit if that business does well.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-7.72M
FY2024 Q4
$-6.54M
FY2025 Q1
$-3.58M
FY2025 Q2
$-3.82M
FY2025 Q3
$-3.23M
FY2025 Q4
$2.82M
FY2026 Q1
$-3.72M
FY2026 Q2
$-5.07M
Revenue
$5.68M
Net income
$-4.65M
Diluted EPS
-0.20
Operating cash flow
$-4.36M
Free cash flow
$-5.07M
Fetching…
Sources
Revenue
$7.41M
Net income
$-3.45M
Diluted EPS
-0.15
Operating cash flow
$-2.83M
Free cash flow
$-3.72M
Fetching…
Sources
Revenue
$6.17M
Net income
$-3.72M
Diluted EPS
-0.17
Operating cash flow
$3.03M
Free cash flow
$2.82M
Fetching…
Sources
Revenue
$5.01M
Net income
$-3.45M
Diluted EPS
-0.15
Operating cash flow
$-2.88M
Free cash flow
$-3.23M
Fetching…
Sources
Revenue
$5.04M
Net income
$-6.04M
Diluted EPS
-0.26
Operating cash flow
$-3.57M
Free cash flow
$-3.82M
Fetching…
Sources
Revenue
$5.27M
Net income
$-4.79M
Diluted EPS
-0.21
Operating cash flow
$-3.28M
Free cash flow
$-3.58M
Fetching…
Sources
Revenue
$-9.14M
Net income
$-355.00K
Diluted EPS
0.00
Operating cash flow
$-5.92M
Free cash flow
$-6.54M
Fetching…
Sources
Revenue
$6.53M
Net income
$85.95M
Diluted EPS
3.62
Operating cash flow
$-7.22M
Free cash flow
$-7.72M
Fetching…
Sources
Is it cheap or expensive?
Fair value $5.00 vs current price $2.47
Wall Street consensus is the average analyst price target: $3.55 (-29.1% lower than our fair-value estimate).
Our most-likely fair value is $5.00 a share — about 102.6% above today's price of $2.47, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $118.7M - more cash than debt. Interest coverage -48.3x.
Net debt
$-118.70M
Interest coverage
-48.30x
Identiv, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
INVE
BASELINE
Identiv, Inc.
Total debt $706.00K Interest coverage -48.30x This is the baseline the peer rows are being compared against.
Total debt $3.93M Interest coverage -562.51x Neither company has much profit cushion over interest right now.
Total debt $709.24K Interest coverage -13.45x Neither company has much profit cushion over interest right now.
Total debt $264.00K Interest coverage 1.87x This peer still has a real interest-payment cushion, while INVE does not.
What you should know
The case for and against INVE
2 Rewards
3 Risks
Rewards
-
Revenue grew 13.0% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Operating margin compressed from -0.1% to -96.0% over 3 years.
-
Return on equity was -10.9% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 12.7% (peer median: 18.3%).
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)
—
Forward P/E
-3.74x
P/B
0.45x
P/S
2.47x
EV/EBITDA
3.42x
PEG ratio
0.85x
Profitability
How much profit each dollar creates
Gross margin
15.9%
Operating margin
-96.0%
Net margin
-62.9%
ROE
-10.9%
ROA
-8.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
20.35x
Quick ratio
18.74x
Total debt
$706.00K
Total cash
$119.41M
Growth
How the business has been compounding
Revenue TTM
$24.27M
Revenue 5Y CAGR
-32.5%
EPS TTM
-0.67
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-7.05M
Free CF TTM
$-7.81M
FCF margin
-32.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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