Impinj Inc (NASDAQ: PI)

Sector: Technology Industry: Semiconductors CIK: 0001114995
Market Cap 3.20 Bn
P/B 16.40
P/E -257.87
P/S 8.89
ROIC (Qtr) -0.34
Div Yield % 0.00
Rev 1y % (Qtr) 0.90
Total Debt (Qtr) 287.53 Mn
Debt/Equity (Qtr) 1.47

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 56.23M provides exceptional 11.74x coverage of interest expenses 4.79M, showing strong debt service capability.
  • Tangible assets of 485.73M provide exceptional 175.99x coverage of deferred revenue 2.76M, showing strong service capability backing.
  • Robust free cash flow of 40.76M exceeds capital expenditure of 15.48M by 2.63x, indicating strong organic growth funding capability.
  • Operating cash flow of 56.23M provides strong 20.37x coverage of deferred revenue 2.76M, indicating service delivery capability.
  • Short-term investments of 138.35M provide solid 9.17x coverage of other current liabilities 15.09M, indicating strong liquidity.

Bear case

  • Operating cash flow of 56.23M barely covers its investment activities of (73.08M), with a coverage ratio of -0.77, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (73.08M) provide weak support for R&D spending of 101.58M, which is -0.72x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 56.23M shows concerning coverage of stock compensation expenses of 55.31M, with a 1.02 ratio indicating potential earnings quality issues.
  • Operating cash flow of 56.23M provides minimal -217.96x coverage of tax expenses of (258000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (7.87M) show weak coverage of depreciation charges of 14.52M, with a -0.54 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,120.22 Bn 6,867.04 847.78 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,782.57 Bn 362.79 138.75 31.18 Bn
3 AVGO Broadcom Inc. 1,393.11 Bn 119.76 35.84 65.14 Bn
4 MU Micron Technology Inc 453.24 Bn 657.82 30.76 12.43 Bn
5 AMD Advanced Micro Devices Inc 338.42 Bn 78.07 9.77 3.85 Bn
6 TXN Texas Instruments Inc 225.71 Bn 66.70 17.17 14.05 Bn
7 INTC Intel Corp 225.13 Bn -843.17 4.26 46.59 Bn
8 QCOM Qualcomm Inc/De 147.37 Bn 27.47 3.28 14.82 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 6.67 4.15
EV to Cash from Ops. EV/CFO 61.30 -405.91
EV to Debt EV to Debt 11.99 81.67
EV to EBIT EV/EBIT -438.22 -94.01
EV to EBITDA EV/EBITDA 267.98 112.02
EV to Free Cash Flow [EV/FCF] EV/FCF 84.57 103.01
EV to Market Cap EV to Market Cap 1.08 0.77
EV to Revenue EV/Rev 9.58 36.18
Price to Book Value [P/B] P/B 16.40 24.05
Price to Earnings [P/E] P/E -257.87 97.65
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 2.38
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.97
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 21.06
Interest Coverage Int. cover (Qtr) -1.64 8.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.81 -149.31
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -29.82 70.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.42
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -123.24 51.85
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 402.66 91.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -123.44 36.72
EBT Growth (1y) % EBT 1y % (Qtr) -144.11 30.25
EPS Growth (1y) % EPS 1y % (Qtr) -143.69 49.61
FCF Growth (1y) % FCF 1y % (Qtr) -59.85 281.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.43 37.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.70 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 0.39 2.35
Current Ratio Curr Ratio (Qtr) 2.67 5.61
Debt to Equity Ratio Debt/Equity (Qtr) 1.47 -0.02
Interest Cover Ratio Int Coverage (Qtr) -1.64 8.98
Times Interest Earned Times Interest Earned (Qtr) -1.64 8.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.80 -113.04
EBIT Margin % EBIT Margin % (Qtr) -2.19 -92.05
EBT Margin % EBT Margin % (Qtr) -3.52 -132.99
Gross Margin % Gross Margin % (Qtr) 52.20 47.72
Net Profit Margin % Net Margin % (Qtr) -3.40 -133.93