Inseego Corp. Fundamental Analysis (NASDAQ: INSG)
Inseego Corp. (NASDAQ: INSG) shows moderate financial fundamentals with a PE ratio of 11.30, profit margin of -1.26%, and ROE of 17.85%. The company generates $0.2B in annual revenue with weak year-over-year growth of -13.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze INSG's fundamental strength across five key dimensions:
Efficiency Score
WeakINSG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentINSG trades at attractive valuation levels.
Growth Score
WeakINSG faces weak or negative growth trends.
Financial Health Score
ExcellentINSG maintains a strong and stable balance sheet.
Profitability Score
ModerateINSG maintains healthy but balanced margins.
Key Financial Metrics
Is INSG Expensive or Cheap?
P/E Ratio
INSG trades at 11.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, INSG's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Inseego Corp. at -4.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.67 times EBITDA. This signals the market has high growth expectations.
How Well Does INSG Make Money?
Net Profit Margin
For every $100 in sales, Inseego Corp. keeps $-1.26 as profit after all expenses.
Operating Margin
Core operations generate 0.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.85 in profit for every $100 of shareholder equity.
ROA
Inseego Corp. generates $-2.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Inseego Corp. generates limited operating cash flow of $12.52M, signaling weaker underlying cash strength.
Free Cash Flow
Inseego Corp. generates weak or negative free cash flow of $3.60M, restricting financial flexibility.
FCF Per Share
Each share generates $0.22 in free cash annually.
FCF Yield
INSG converts 2.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How INSG Stacks Against Its Sector Peers
| Metric | INSG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.30 | 36.46 | Better (Cheaper) |
| ROE | 17.85% | 679.00% | Weak |
| Net Margin | -1.26% | -129189.00% (disorted) | Weak |
| Debt/Equity | -2.13 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 1.02 | 5.89 | Neutral |
| ROA | -2.53% | 242.00% | Weak |
INSG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Inseego Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-66.36%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
100.48%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-77.20%
Industry Style: Growth, Innovation, High Beta
Declining