Ideal Power Inc. (NASDAQ: IPWR)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0001507957
Market Cap 30.46 Mn
P/B 3.02
P/E -2.70
P/S 706.23
ROIC (Qtr) -99.18
Div Yield % 0.00
Rev 1y % (Qtr) 4,313.36
Total Debt (Qtr) 425,076.00
Debt/Equity (Qtr) 0.04
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About

Ideal Power Inc., a technology firm recognized by its ticker symbol IPWR, operates in the development and commercialization of its Bidirectional bipolar junction transistor (B-TRAN) solid-state switch technology. Headquartered in Texas, the company began its operations in 2007 and later converted to a Delaware corporation in 2013. Ideal Power's innovative technology is designed to improve the efficiency and power density of power conversion systems. The company's primary business activities revolve around the enhancement of power conversion systems'...

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Investment thesis

Bull case

  • Healthy cash reserves of 8.39M provide 92.60x coverage of short-term debt 90646, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 9.55M provides 22.46x coverage of total debt 425076, indicating robust asset backing and low credit risk.
  • Tangible assets of 9.55M provide robust 16.79x coverage of other current liabilities 568675, indicating strong asset backing.
  • Strong cash position of 8.39M provides 14.76x coverage of other current liabilities 568675, indicating excellent liquidity.
  • Cash reserves of 8.39M provide robust 9.45x coverage of current liabilities 888520, indicating strong short-term solvency.

Bear case

  • Investment activities of (438066) provide weak support for R&D spending of 6.85M, which is -0.06x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (9.52M) shows concerning coverage of stock compensation expenses of 1.43M, with a -6.66 ratio indicating potential earnings quality issues.
  • Free cash flow of (9.64M) provides weak coverage of capital expenditures of 115139, with a -83.71 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (11.28M) show weak coverage of depreciation charges of 450814, with a -25.01 ratio indicating high capital intensity and potential reinvestment needs.
  • Tangible assets of 9.55M provide limited backing for working capital of 7.79M, which is 1.23x, suggesting increased operational risk in market downturns.

Peer comparison

Companies in the Electrical Equipment & Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRT Vertiv Holdings Co 93.00 Bn 69.78 9.09 3.16 Bn
2 BE Bloom Energy Corp 34.73 Bn -392.76 17.16 2.99 Bn
3 HUBB Hubbell Inc 27.97 Bn 31.52 4.78 2.33 Bn
4 NVT nVent Electric plc 19.43 Bn 76.81 8.40 1.56 Bn
5 AYI Acuity Inc. (De) 12.85 Bn 109.95 6.86 0.91 Bn
6 AEIS Advanced Energy Industries Inc 11.80 Bn 79.52 6.56 0.68 Bn
7 NVX NOVONIX Ltd 11.53 Bn -174.00 1,943.36 -
8 ENS EnerSys 6.79 Bn 21.71 1.82 1.18 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.62 3.49
EV to Cash from Ops. EV/CFO -2.08 9.10
EV to Debt EV to Debt 46.59 113.17
EV to EBIT EV/EBIT -1.76 -17.64
EV to EBITDA EV/EBITDA -1.75 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF -2.05 39.13
EV to Market Cap EV to Market Cap 0.65 2.59
EV to Revenue EV/Rev 459.12 77.74
Price to Book Value [P/B] P/B 3.02 4.98
Price to Earnings [P/E] P/E -2.70 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.27
Dividend per Basic Share Div per Share (Qtr) 0.00 0.37
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.79
Interest Coverage Int. cover (Qtr) 0.00 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 51.20 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -55.01 92.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -10.25 -45.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -8.61 -56.26
EBIT Growth (1y) % EBIT 1y % (Qtr) -10.25 -64.20
EBT Growth (1y) % EBT 1y % (Qtr) -10.25 8.52
EPS Growth (1y) % EPS 1y % (Qtr) 11.43 13.91
FCF Growth (1y) % FCF 1y % (Qtr) -14.99 -66.58
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -382.94 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 9.45 3.50
Current Ratio Curr Ratio (Qtr) 9.76 5.07
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.41
Interest Cover Ratio Int Coverage (Qtr) 0.00 -16.86
Times Interest Earned Times Interest Earned (Qtr) 0.00 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -25,096.00 -1,947.23
EBIT Margin % EBIT Margin % (Qtr) -26,141.07 -2,051.19
EBT Margin % EBT Margin % (Qtr) -26,141.07 -2,170.94
Gross Margin % Gross Margin % (Qtr) -53.80 2.02
Net Profit Margin % Net Margin % (Qtr) -26,141.10 -2,202.04