The company of focus in this article is I.D Systems Inc. (IDSY). It caught my attention because of recent increases in the volume traded over the past eight days. Below is brief information regarding its business model, investment highlights, and valuation metrics.
"IDSY designs, develops, and produces a wireless monitoring and tracking system that uses radio frequency technology. The Company's system monitors, tracks, analyzes, and controls the movement of vehicle, equipment, and packages." Business Description from Bloomberg Market Data
Its technology is applicable and designed for managing and providing security to high net worth assets. These assets include industrial, commercial transportation, and rental vehicles. IDSY has implemented its own product that utilizes RFID technology to add value to organizations operations by providing supply chain management through measures of tracking, monitoring, and analyzing data to safeguard valuable assets.
- 13% held by Insiders (only 0.5% change in last six months)
- 40% held by Institutional Investors
- IDSY controls 30% of the cargo transportation tracking market, next companies in line with sizable control in the industry are Qualcomm (QCOM) & Telular (WRLS)
- A few of IDSY's customers: Ford (F), Avis-Budget Group (CAR), & American Airlines
- Contract orders have doubled within the last fiscal year
- Multiple analysts that cover IDSY have rated it a buy
- Analyst accuracy for IDSY 6/7 times on average
In the table above YE 2012 estimates have been highlighted. The YE 2012 enterprise valuation prediction implies a $6.00 price target, a 35% upside from the current market value. The range of analysts price targets is from $5.50 to $9.50, a 24% to 100% potential upside.
IDSY has evidently entered a growing market, but the question is how much room for growth. It has proven its ability to capture market share in the automotive and transportation industry, and has showed significant growth in its customer base since last FY. With out the customer of a major retailer such as Wal-Mart (WMT) or Target (TGT), expansion through their current target markets will be a requirement for augmented growth into FY 2013.
Sources: For reference, statistical data, and valuation metrics I utilized the CRSP database provided by Wharton Research Data Services & Bloomberg Market Data.