Iveda Solutions, Inc. (NASDAQ: IVDA)

Sector: Industrials Industry: Security & Protection Services CIK: 0001397183
Market Cap 883,106.82
P/B 0.23
P/E -0.26
P/S 0.14
ROIC (Qtr) -93.83
Div Yield % 0.00
Rev 1y % (Qtr) -31.12
Total Debt (Qtr) 769,235.00
Debt/Equity (Qtr) 0.20
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About

Iveda Solutions, Inc., often referred to as Iveda, operates in the AI and digital transformation technology industry. The company, established in Nevada in 2006, initially focused on constructing and marketing custom homes in Alberta, Canada. However, due to market challenges, it shifted its operations in 2009, merging with IntelaSight, Inc., and rebranding as Iveda Corporation. Iveda's primary business activities revolve around providing AI intelligent video search technology, smart sensors, tracking devices, video surveillance systems, and smart...

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Investment thesis

Bull case

  • Healthy cash reserves of 3.33M provide 9.92x coverage of short-term debt 335831, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of (2.65M) exceeds capital expenditure of (339357) by 7.81x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 5.78M provides 7.51x coverage of total debt 769235, indicating robust asset backing and low credit risk.
  • Cash position of 3.33M provides exceptional 82.60x coverage of minority interest expenses 40330, indicating strong liquidity.
  • Cash reserves of 3.33M provide robust 2.11x coverage of current liabilities 1.58M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (2.99M) barely covers its investment activities of 339357, with a coverage ratio of -8.81, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 339357 provide weak support for R&D spending of 473600, which is 0.72x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (2.99M) shows concerning coverage of stock compensation expenses of 187000, with a -15.99 ratio indicating potential earnings quality issues.
  • High receivables of 1.32M relative to inventory of 247516 (5.35 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of (3.33M) show weak coverage of depreciation charges of 24061, with a -138.48 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Security & Protection Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ALLE Allegion plc 14.00 Bn 21.75 3.44 1.98 Bn
2 MSA MSA Safety Inc 7.99 Bn 374.33 5.71 0.63 Bn
3 BCO Brinks Co 6.24 Bn 112.89 1.74 4.32 Bn
4 BRC Brady Corp 4.99 Bn 38.51 4.29 0.18 Bn
5 ADT ADT Inc. 4.95 Bn -9.23 1.68 7.81 Bn
6 CXW CoreCivic, Inc. 2.04 Bn 18.69 0.98 1.04 Bn
7 GEO Geo Group Inc 2.02 Bn 8.48 0.80 1.63 Bn
8 NSSC Napco Security Technologies, Inc 1.57 Bn 33.18 8.19 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.08 1.53
EV to Cash from Ops. EV/CFO -0.15 15.25
EV to Debt EV to Debt 0.59 44.60
EV to EBIT EV/EBIT -0.14 8.47
EV to EBITDA EV/EBITDA -0.14 14.35
EV to Free Cash Flow [EV/FCF] EV/FCF -0.17 28.03
EV to Market Cap EV to Market Cap 0.52 0.95
EV to Revenue EV/Rev 0.07 2.53
Price to Book Value [P/B] P/B 0.23 3.48
Price to Earnings [P/E] P/E -0.26 32.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 106.48
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 25.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.91
Interest Coverage Int. cover (Qtr) -82.78 -11.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -38.28 -7.19
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -8.25 23.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.73
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 24.61 35.26
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 21.82 87.34
EBIT Growth (1y) % EBIT 1y % (Qtr) 24.74 29.11
EBT Growth (1y) % EBT 1y % (Qtr) 24.11 41.98
EPS Growth (1y) % EPS 1y % (Qtr) 40.72 37.27
FCF Growth (1y) % FCF 1y % (Qtr) 39.34 -41.16
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.52 7.42
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.11 0.71
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 2.11 1.61
Current Ratio Curr Ratio (Qtr) 3.48 3.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.20 1.13
Interest Cover Ratio Int Coverage (Qtr) -82.78 -11.72
Times Interest Earned Times Interest Earned (Qtr) -82.78 -11.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -51.70 -5.57
EBIT Margin % EBIT Margin % (Qtr) -52.09 -15.45
EBT Margin % EBT Margin % (Qtr) -52.72 -14.45
Gross Margin % Gross Margin % (Qtr) 22.80 38.13
Net Profit Margin % Net Margin % (Qtr) -53.20 -16.17