New stock pick: Intellicheck, Inc. (IDN stock) analysis, valuation, earnings forecasts.

Updated: Nov 17, 2020

I added Intellicheck, Inc. (IDN stock) to my portfolio.


Intellicheck, Inc. engages in the development, integration, and marketing of threat and identity authentication solutions. It offers professional services, retail, age, defense, guest, and port ID. The company was founded in 1994 and is headquartered in Melville, NY.

The key reasons for adding Intellicheck, Inc. (IDN stock) to my portfolio are:

  1. the recent quickly accelerated revenue growth which converts to earnings.

  2. Intellicheck, Inc. is about to show profit and has already shown a profit in the latest 2 quarters.

Intellicheck, Inc. (IDN stock) past and predicted revenues and earnings

Source: https://simplywall.st/stocks/us/tech/nasdaq-idn/intellicheck#future



Intellicheck, Inc. (IDN stock) earnings per share growth forecast

With an expected EPS of $0.325 for IDN stock at the end of 2021 and the current price of $7.91, the forward Price-to-Earnings ratio is 24. This is still a bit high. However, I would like to note how Intellicheck, Inc. (IDN stock) has been constantly beating EPS predictions for the past 3 quarters. If it reaches an EPS of $0.45, the PE ratio for IDN stock will be 17.6.


The question here is: will Intellicheck, Inc. (IDN stock) grow at the same rate past the end of 2021?

The company seems to be doing great in terms of revenue growth. Based on Intellicheck, Inc. investor presentation the company has been adding quite a few large clients. To read the list of new clients check this document starting page 13 https://intellicheck.com/web/default/files/public/IDN-IR-Presentation-5-14-20.pdf


On top of the list of clients in investors' presentation, the company announced the addition of another Midwest-based financial institution with nearly 1,200 branches in 26 states with an associated business presence in 39 states.

https://finance.yahoo.com/news/prominent-financial-institution-adopts-intellicheck-121300474.html


Intellicheck, Inc. (IDN stock) revenue and net income trend

This leads me to hopes that Intellicheck, Inc. (IDN stock) will beat earnings estimates for the upcoming release of Q2 results (on August 11th).


For a company with a market cap of $140 million, there is quite some interest to the company from institutions. This also means the public float is very small.

Intellicheck, Inc. (IDN stock) ownership breakdown

Source: https://simplywall.st/stocks/us/tech/nasdaq-idn/intellicheck#future


1,611,411 of those shares institutions currently hold were added very recently:

Intellicheck, Inc. (IDN stock) changes in ownership by institutions

Source: https://www.nasdaq.com/market-activity/stocks/idn/institutional-holdings


Lastly, based on https://www.marketwatch.com/investing/stock/idn/analystestimates there are 3 analysts covering IDN stock. 2 of them give the stock a BUY rating, 1 - HOLD. The average target price for the stock is $11 (to remind, the current price is $7.91)

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