IFON  Infosonics Corp

Exchange

NASDAQ

Sector

Consumer Non-Durables

Industry

Electronic Components

Market Cap.

5.97M

Vuru Grade

29.89/100

Current Price

$0.41
-0.0097 (-2.2845%)

Growth Price

$1.03
Undervalued by 148.10%

Stability Price

$0.50
Undervalued by 19.49%

Company Metrics

  • P/E 23.8774
  • P/S 0.1699
  • P/B 0.6208
  • EPS -0.214
  • Cash ROIC -10.81%
  • Cash Ratio 0.40
  • Dividend 0 / 0%
  • Avg. Vol. 367,732.00
  • Shares 14.39M
  • Market Cap. 5.97M

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 Reports First Quarter 2017 Results
PR Newswire (press release) - May 11, 2017
SAN DIEGO, May 11, 2017 /PRNewswire/ -- InfoSonics Corporation (NASDAQ: IFON), the provider of verykool® wireless handset solutions and tablets, today announced results for its first quarter ended March 31, 2017.
InfoSonics Reports Third Quarter 2016 Results
PR Newswire (press release) - Nov 10, 2016
10, 2016 /PRNewswire/ -- InfoSonics Corporation (NASDAQ: IFON), the provider of verykool® wireless handset solutions and tablets, today announced results for its third quarter ended September 30, 2016.
0.4246
MarketWatch - Dec 21, 2009
InfoSonics Corp. InfoSonics Corp. provides wireless handsets, tablets and accessories to carriers and distributors in Latin America and U.S.
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.
BRIEF-Infosonics corp enters into eighth amendment to loan and security ...
Reuters - Mar 29, 2017
Reuters is the news and media division of Thomson Reuters. Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news ...
How To Make Money With Cheap Stocks Like InfoSonics
Seeking Alpha - May 2, 2017
As it stands, InfoSonics is a micro cap with a Net Current Asset Value of $10.1M. For net net type stocks like InfoSonics, I don't pay much attention to the product and business model. My method is to make sure the balance sheet is healthy and not ...
Could InfoSonics Corp. (NASDAQ:IFON) halt soon? - FinancialsTrend
InfoSonics Corporation (NASDAQ:IFON) Files An 8-K Notice of Delisting or ... - Market Exclusive
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 ...
2 Stocks to keep an eye on Today: InfoSonics Corporation (IFON), Snap Inc. (SNAP)
StockNewsJournal - May 12, 2017
InfoSonics Corporation (NASDAQ:IFON) market capitalization at present is $7.21M at the rate of $0.46 a share. The firm's price-to-sales ratio was noted 0.21 in contrast with an overall industry average of 1.75.
The Chart Is Speaking Loud And Clear For InfoSonics Corporation (IFON)
NY Stock News - Apr 28, 2017
InfoSonics Corporation (IFON) has been having a set of eventful trading activity and it is clear from an examination of the charts that traders are now fully aware of the company's key metrics.
Infosonics Corp first-quarter loss widens on a YOY basis
Myiris.com - May 25, 2017
InfoSonics Corporation (IFON) saw its loss widen to $1.10 million, or $0.08 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.90 million, or $0.06 a share.
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.

$0.41 Current Price

$1.03 Growth Price (DCF)

Undervalued by 148.10%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.50 Stability Price (EPV)

Undervalued by 19.49%


Discount Rate: 15.0%

$0.70 NCA Price

Undervalued by 68.74%

$0.77 Book Price

Undervalued by 85.74%


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 $10.81 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -6.29M -3.86M -3.06M 4.75M 656,000.00
divided by
Invested Capital 11.59M 13.96M 14.64M 11.59M 8.39M
Cash ROIC -54.29% -27.65% -20.89% 40.95% 7.82%

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 $10.48 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -2.50M -597,000.00 261,000.00 -1.24M -2.84M
divided by
Stockholders' Equity 16.82M 16.33M 16.10M 14.24M 10.59M
Return on Equity -14.86% -3.66% 1.62% -8.73% -26.77%

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
2007200820092010201120122013201420152016
Free Cash Flow -11.06M 16.37M -17.05M 19.68M -76,000.00 -6.29M -3.86M -3.06M 4.75M 656,000.00

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
2007200820092010201120122013201420152016
Cash 20.75M 24.71M 18.42M 12.48M 11.42M 5.23M 2.37M 1.46M 2.65M 2.20M
Current Assets 88.07M 59.54M 66.01M 28.38M 25.83M 21.53M 20.29M 25.84M 20.70M 15.51M
Total Assets 91.68M 60.65M 66.42M 28.74M 26.21M 22.12M 20.67M 26.00M 20.98M 16.03M
Current Liabilities 54.66M 33.89M 41.59M 7.48M 7.23M 5.30M 4.34M 9.90M 6.74M 5.44M
Total Liabilities 54.66M 33.89M 41.59M 7.48M 7.23M 5.30M 4.34M 9.90M 6.74M 5.44M
Stockholder' Equity 37.02M 26.76M 24.83M 21.27M 18.99M 16.82M 16.33M 16.10M 14.24M 10.59M
Current Ratio 1.61 1.76 1.59 3.79 3.58 4.06 4.67 2.61 3.07 2.85
TL-to-TA 0.60 0.56 0.63 0.26 0.28 0.24 0.21 0.38 0.32 0.34

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
2007200820092010201120122013201420152016
Retained Earnings 5.54M -4.88M -6.91M -10.47M -12.96M -15.46M -16.06M -15.80M -17.04M -19.88M
Retained Earnings Growth - -188.16% -41.53% -51.65% -23.75% -19.29% -3.86% 1.63% -7.87% -16.64%

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.

$3.64 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -1.61M -10.42M -1.53M -3.57M -2.49M -2.50M -597,000.00 261,000.00 -1.24M -2.84M
divided by
Revenue 244.69M 213.22M 231.31M 72.53M 34.88M 34.29M 37.90M 48.14M 47.83M 39.14M
Net Profit Margin -0.66% -4.88% -0.66% -4.92% -7.13% -7.29% -1.58% 0.54% -2.60% -7.24%

Inconsistent Gross Profit Margins over the past 10 years

IFON has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$20.06 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
2007200820092010201120122013201420152016
Gross Profit 11.51M 10.01M 15.31M 4.80M 33.30M 6.81M 6.94M 8.25M 7.42M 4.59M
divided by
Revenue 244.69M 213.22M 231.31M 72.53M 34.88M 34.29M 37.90M 48.14M 47.83M 39.14M
Gross Margin 4.70% 4.70% 6.62% 6.61% 95.45% 19.85% 18.32% 17.14% 15.51% 11.73%

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.

44.44% 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
2007200820092010201120122013201420152016
Capital Expenditure 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 62,000.00
divided by
Net Income -1.61M -10.42M -1.53M -3.57M -2.49M -2.50M -597,000.00 261,000.00 -1.24M -2.84M
Capital Expenditure Ratio -86.03% -4.45% -10.06% -9.11% -8.08% -15.84% -24.29% 44.44% -8.93% -2.19%

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
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 14.46M 14.88M 14.58M 14.18M 14.18M 14.18M 14.18M 14.79M 14.38M 14.39M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 3.46 0.60 2.52 1.78 0.62 0.65 1.62 1.19 1.54 0.38
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
2007200820092010201120122013201420152016
Shares Outstanding 14.46M 14.88M 14.58M 14.18M 14.18M 14.18M 14.18M 14.79M 14.38M 14.39M
Stock Bought Back - -2.86% 2.11% 2.77% - - - -4.09% 2.84% -0.06%
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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