IFON  Infosonics Corp

Exchange

NASDAQ

Sector

Consumer Non-Durables

Industry

Electronic Components

Market Cap.

9.35M

Vuru Grade

32.36/100

Current Price

$0.65
-0.00 (-0.49%)

Growth Price

$3.11
Undervalued by 379.04%

Stability Price

$3.38
Undervalued by 419.71%

Company Metrics

  • P/E 23.8774
  • P/S 0.23
  • P/B 0.88
  • EPS -0.27
  • Cash ROIC -12.58%
  • Cash Ratio 0.39
  • Dividend 0 / N/A %
  • Avg. Vol. 91,890.00
  • Shares 14.38M
  • Market Cap. 9.35M

Company Description

InfoSonics Corporation distributes and provides wireless handsets and accessories in Central and South America. The company also designs, sources, and distributes entry level, mid-tier, and high-end products under the verykool name. Its distribution and solution services comprise product testing; approval and certification; warehousing; logistics services, such as packing, shipping, and delivery; ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

InfoSonics: Is This Net Net Stock A Screaming Buy?
Seeking Alpha - Jan 9, 2017
As more and more smart value investors turn to deep value investing and net net stocks in particular, I thought it would be worthwhile highlighting our approach to stock selection at Net Net Hunter.
InfoSonics Corp (NASDAQ:IFON) Registers a Net Consolidated EPS Of $-0.0864
Equities Focus - 8 hours ago
InfoSonics Corp (NASDAQ:IFON) received diluted EPS of from the parent company amounting to $-0.0864 for the year ended on 2015-12-31.
Wall Street Watch-list: InfoSonics Corporation's (IFON) stock price ends at $0 ...
WsNews 4investors - Feb 20, 2017
InfoSonics Corporation's (IFON ) stock price escalated 25.00% to finalize at $0.75 throughout previous buying and selling session.
InfoSonics Launches a New 5-Inch Metal-Encased 4G LTE Smartphone: The verykool ...
PR Newswire (press release) - Feb 9, 2016
"We've crafted the Spark LTE to be an impressive product that is aesthetically beautiful and feels great in the palm of your hand," said Joseph Ram, InfoSonics president and chief executive officer. "From its dramatically thin 1mm bezel to its 2,200 ...
InfoSonics Corp (NASDAQ:IFON) Quarterly Basic Net EPS At 2016-09-30
Equities Focus - Jan 15, 2017
For the year ended 2016-09-30 InfoSonics Corp (NASDAQ:IFON) basic consolidated EPS came $-0.0864. Conversely, for the quarter ended 2016-09-30, it was $-0.0864.
InfoSonics Expands Economical 4G LTE Smartphone Line: The verykool® Jet ...
PR Newswire (press release) - Sep 28, 2015
SAN DIEGO, Sept. 28, 2015 /PRNewswire/ -- InfoSonics Corporation (NASDAQ: IFON) today announced the release of its latest 4G LTE model, the verykool® Jet (SL5009).
InfoSonics Corp (NASDAQ:IFON) Consolidated Diluted EPS At -0.0864
Equities Focus - Feb 19, 2017
InfoSonics Corp (NASDAQ:IFON) net diluted EPS was $-0.09 for the fiscal closed 2015-12-31. For the quarter ended 2015-12-31, net diluted EPS was $-0.09.
InfoSonics Goes Big with the Introduction of a 6-Inch Phablet: the verykool ...
PR Newswire (press release) - Feb 17, 2015
SAN DIEGO, Feb. 17, 2015 /PRNewswire/ -- InfoSonics Corporation (NASDAQ: IFON) has unveiled the latest addition to the verykool® product lineup - the s6001 Cyprus, an all-purpose 6-inch phablet.
Notable movements of Stock: InfoSonics Corporation's (IFON) share price has ...
Street Updates - Feb 23, 2017
InfoSonics Corporation's (IFON ) , a stock from Communication Equipment Industry, has a value of $0.69 per share, noted a price change of 7.92% in recent trade close.
InfoSonics Launches new 5-Inch Smartphone, the verykool Spark LTE
Dealerscope - Feb 10, 2016
InfoSonics Corporation is set to release its latest 5-inch LTE smartphone into the wild. The verykool Spark LTE is expected to be made available on Monday, February 22 for the suggested retail from of $179.90.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for IFON to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate IFON's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$0.65 Current Price

$3.11 Growth Price (DCF)

Undervalued by 379.04%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$3.38 Stability Price (EPV)

Undervalued by 419.71%


Discount Rate: 15.0%

$0.97 NCA Price

Undervalued by 49.25%

$1.25 Book Price

Undervalued by 91.67%


Very Poor Cash Return on Invested Capital over the past 5 years

IFON has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

IFON has lost $12.58 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -76,000.00 -6.29M -3.86M -3.06M 4.75M
divided by
Invested Capital 7.56M 11.59M 13.96M 14.64M 11.59M
Cash ROIC -1.00% -54.29% -27.65% -20.89% 40.95%

Very Poor Return on Equity over the past 5 years

IFON has shown an inability to deliver results for shareholders. This could be due to poor management, IFON operating in a highly competitive industry, or having a weak business in general.

IFON has generated a $7.75 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income -2.49M -2.50M -597,000.00 261,000.00 -1.24M
divided by
Stockholders' Equity 18.99M 16.82M 16.33M 16.10M 14.24M
Return on Equity -13.10% -14.86% -3.66% 1.62% -8.73%

Poor Business Performance over the past 10 years

IFON's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

IFON has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -7.83M -11.06M 16.37M -17.05M 19.68M -76,000.00 -6.29M -3.86M -3.06M 4.75M

Good Balance Sheet

IFON's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 30.24M 20.75M 24.71M 18.42M 12.48M 11.42M 5.23M 2.37M 1.46M 2.65M
Current Assets 81.71M 88.07M 59.54M 66.01M 28.38M 25.83M 21.53M 20.29M 25.84M 20.70M
Total Assets 82.97M 91.68M 60.65M 66.42M 28.74M 26.21M 22.12M 20.67M 26.00M 20.98M
Current Liabilities 45.03M 54.66M 33.89M 41.59M 7.48M 7.23M 5.30M 4.34M 9.90M 6.74M
Total Liabilities 45.06M 54.66M 33.89M 41.59M 7.48M 7.23M 5.30M 4.34M 9.90M 6.74M
Stockholder' Equity 37.91M 37.02M 26.76M 24.83M 21.27M 18.99M 16.82M 16.33M 16.10M 14.24M
Current Ratio 1.81 1.61 1.76 1.59 3.79 3.58 4.06 4.67 2.61 3.07
TL-to-TA 0.54 0.60 0.56 0.63 0.26 0.28 0.24 0.21 0.38 0.32

Low or No Reinvestment of Profits over the past 10 years

IFON has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to IFON operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 7.15M 5.54M -4.88M -6.91M -10.47M -12.96M -15.46M -16.06M -15.80M -17.04M
Retained Earnings Growth - -22.58% -188.16% -41.53% -51.65% -23.75% -19.29% -3.86% 1.63% -7.87%

Loss Making Entity over the past 10 years

IFON has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$2.81 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 2.54M -1.61M -10.42M -1.53M -3.57M -2.49M -2.50M -597,000.00 261,000.00 -1.24M
divided by
Revenue 240.90M 244.69M 213.22M 231.31M 72.53M 34.88M 34.29M 37.90M 48.14M 47.83M
Net Profit Margin 1.05% -0.66% -4.88% -0.66% -4.92% -7.13% -7.29% -1.58% 0.54% -2.60%

Weak Pricing Power over the past 10 years

IFON is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that IFON has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $19.67 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 18.77M 11.51M 10.01M 15.31M 4.80M 33.30M 6.81M 6.94M 8.25M 7.42M
divided by
Revenue 240.90M 244.69M 213.22M 231.31M 72.53M 34.88M 34.29M 37.90M 48.14M 47.83M
Gross Margin 7.79% 4.70% 4.70% 6.62% 6.61% 95.45% 19.85% 18.32% 17.14% 15.51%

Medium Capital Intensity over the past 10 years

IFON has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

28.97% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 342,747.00 1.39M 463,353.00 153,695.00 325,000.00 201,000.00 396,000.00 145,000.00 116,000.00 111,000.00
divided by
Net Income 2.54M -1.61M -10.42M -1.53M -3.57M -2.49M -2.50M -597,000.00 261,000.00 -1.24M
Capital Expenditure Ratio 13.50% -86.03% -4.45% -10.06% -9.11% -8.08% -15.84% -24.29% 44.44% -8.93%

No Dividend History over the past 10 years

IFON has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 15.87M 14.46M 14.88M 14.58M 14.18M 14.18M 14.18M 14.18M 14.79M 14.38M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 11.78 3.46 0.60 2.52 1.78 0.62 0.65 1.62 1.19 1.54
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

IFON has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 15.87M 14.46M 14.88M 14.58M 14.18M 14.18M 14.18M 14.18M 14.79M 14.38M
Stock Bought Back - 9.76% -2.86% 2.11% 2.77% - - - -4.09% 2.84%
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Discussion
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Posted by whatistruth  (on May 29, 2012)
will it really go to 1.73 or 2.40. cell phones hot in Argentina. may win some good markup for sustained growth