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Intellicheck, Inc.'s (NYSEMKT:IDN) Shift From Loss To Profit

Simply Wall St

Intellicheck, Inc.'s (NYSEMKT:IDN): Intellicheck, Inc., a technology company, develops, integrates, and markets threat identification and identity authentication solutions for retail fraud prevention, law enforcement threat identification, and mobile and handheld access control and security systems primarily in the United States. The US$110m market-cap posted a loss in its most recent financial year of -US$4.0m and a latest trailing-twelve-month loss of -US$3.3m shrinking the gap between loss and breakeven. As path to profitability is the topic on IDN’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for IDN.

Check out our latest analysis for Intellicheck

According to the 3 industry analysts covering IDN, the consensus is breakeven is near. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$28k in 2020. Therefore, IDN is expected to breakeven roughly a couple of months from now! What rate will IDN have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 130%, which signals high confidence from analysts. If this rate turns out to be too aggressive, IDN may become profitable much later than analysts predict.

AMEX:IDN Past and Future Earnings, December 5th 2019

I’m not going to go through company-specific developments for IDN given that this is a high-level summary, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before I wrap up, there’s one aspect worth mentioning. IDN currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which typically has high debt relative to its equity. This means that IDN has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of IDN which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at IDN, take a look at IDN’s company page on Simply Wall St. I’ve also compiled a list of key factors you should look at:

  1. Valuation: What is IDN worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether IDN is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Intellicheck’s board and the CEO’s back ground.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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