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Haivision Systems, Inc. (TSE:HAI)
:HAI
RESEARCH TOOLSreports
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Haivision Systems, Inc.
(TSX:HAI)
64Neutral
Haivision Systems, Inc. (HAI) vs. S&P 500 (SPY)
Market Cap
C$109.44M
Dividend YieldN/A
Average Volume (3M)20.03K
Price to Earnings (P/E)49.1
Beta (1Y)0.30
Revenue Growth-12.29%
EPS Growth64.23%
CountryCA
Employees379
SectorTechnology
Sector Strength46
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.08
Shares Outstanding27,988,913
10 Day Avg. Volume11,866
30 Day Avg. Volume20,027
Financial Highlights & Ratios
PEG Ratio0.76
Price to Book (P/B)N/A
Price to Sales (P/S)0.99
Price to Cash Flow (P/CF)-47.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.50Price Target Upside15.09% Upside
Rating ConsensusHold
Number of Analyst Covering1
Haivision Systems, Inc. Business Overview & Revenue Model
Company DescriptionHaivision Systems, Inc. (HAI) is a leading provider of mission-critical, real-time video streaming and networking solutions. The company specializes in delivering high-quality video streaming, video management, and enterprise video solutions to a diverse set of industries, including broadcast, government, enterprise, and military sectors. Haivision is renowned for its low-latency, high-performance video streaming solutions that enable organizations to securely transmit video content over various networks.
How the Company Makes MoneyHaivision Systems, Inc. generates revenue primarily through the sale of its advanced video streaming and networking products and services. The company's key revenue streams include the sales of hardware and software solutions, such as encoders, decoders, and video management systems. Additionally, Haivision offers cloud-based services and support contracts, which provide ongoing revenue through subscriptions and service fees. The company also benefits from strategic partnerships and collaborations with technology providers and resellers, further enhancing its market reach and contributing to its earnings.
Haivision Systems, Inc. Financial Statement Overview
Summary
Haivision Systems, Inc. presents a strong financial profile with significant improvements in profitability and cash flow generation. The company has effectively managed its debt, resulting in a more stable balance sheet. Continuous revenue growth and improved margins highlight a positive trajectory, although there remains potential for further enhancement in operational efficiency and asset utilization.Income Statement
Haivision Systems, Inc. has shown a steady revenue increase over the years, evidencing strong growth with a 55% increase from 2019 to 2024. The company has improved its profitability metrics significantly, with a notable gross profit margin of 73% in 2024, up from 75% in 2023. This indicates good cost management and pricing power. The net profit margin turned positive in 2024 at 3.6%, a significant improvement from negative figures in previous years, showcasing a turnaround in operational efficiency. The EBIT margin also improved to 4.2% in 2024 from 0.9% in 2023. However, the EBITDA margin of 11.8% suggests room for further improvement in operational leverage.75
Positive
Balance Sheet
The balance sheet of Haivision Systems, Inc. reflects a solid equity position, with an equity ratio of 68.5% in 2024, indicating financial stability and low leverage. The debt-to-equity ratio has decreased from 0.17 in 2023 to 0.11 in 2024, demonstrating effective debt management. The return on equity (ROE) improved to 4.9% in 2024 from a negative ROE in previous years, suggesting better utilization of equity for generating profits. Nevertheless, the company's asset base has slightly decreased, which might need attention for potential growth opportunities.70
Positive
Cash Flow
Haivision Systems, Inc. demonstrates robust cash flow management, with a strong free cash flow growth rate of 23.2% in 2024. The operating cash flow to net income ratio is commendable at 4.15, indicating high cash generation efficiency relative to net income. The free cash flow to net income ratio also stands strong at 3.72, highlighting a solid conversion of earnings into cash. These metrics indicate a healthy cash flow situation, providing the company with flexibility for reinvestment and debt servicing.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 129.54M | 139.86M | 125.70M | 92.59M | 83.11M |
| Gross Profit | ||||
| 94.69M | 98.58M | 86.33M | 69.33M | 63.75M |
| EBIT | ||||
| 5.48M | 1.23M | -2.84M | -5.49M | 8.16M |
| EBITDA | ||||
| 15.30M | 11.07M | 3.06M | -2.67M | 9.90M |
| Net Income Common Stockholders | ||||
| 4.70M | -1.27M | -6.19M | -8.78M | 5.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 16.47M | 8.29M | 5.77M | 26.84M | 15.72M |
| Total Assets | ||||
| 141.32M | 144.09M | 148.60M | 122.48M | 62.77M |
| Total Debt | ||||
| 10.27M | 16.18M | 24.97M | 8.59M | 7.57M |
| Net Debt | ||||
| -6.20M | 7.89M | 19.20M | -18.25M | -8.14M |
| Total Liabilities | ||||
| 44.52M | 49.94M | 58.35M | 33.56M | 32.69M |
| Stockholders Equity | ||||
| 96.80M | 94.15M | 90.25M | 88.92M | 30.07M |
| Cash Flow | Free Cash Flow | |||
| 17.49M | 14.20M | -6.12M | 1.44M | 13.61M |
| Operating Cash Flow | ||||
| 19.49M | 15.25M | -5.08M | 2.22M | 13.92M |
| Investing Cash Flow | ||||
| -2.20M | -3.07M | -25.76M | -20.32M | -2.54M |
| Financing Cash Flow | ||||
| -9.18M | -9.88M | 8.58M | 30.23M | 1.79M |
Haivision Systems, Inc. Technical Analysis
Negative
3.91
Price Trends
4.41
Negative
4.81
Negative
4.86
Negative
Market Momentum
-0.14
Negative
45.97
Neutral
47.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HAI, the sentiment is Negative. The current price of 3.91 is below the 20-day moving average (MA) of 4.02, below the 50-day MA of 4.41, and below the 200-day MA of 4.86, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 47.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HAI.
Haivision Systems, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $8.50B | 11.34 | 38.85% | 3.60% | 3.76% | 14.27% | |
72 Outperform | $1.32B | 15.55 | 14.76% | 4.31% | 8.11% | 15.83% | |
71 Outperform | C$19.43B | 10.82 | 16.66% | 5.66% | 6.71% | 96.70% | |
71 Outperform | C$535.06M | 116.08 | 1.43% | 2.48% | 9.02% | -76.61% | |
64 Neutral | C$109.44M | 49.13 | 2.48% | ― | -12.29% | 64.23% | |
59 Neutral | $9.97B | 10.09 | -6.54% | 3.08% | 7.41% | -11.60% | |
57 Neutral | $27.30B | 165.70 | 1.80% | 12.89% | -1.07% | -92.15% |
* Technology Sector Average
Performance Comparison
TSE:HAI
Haivision Systems, Inc.
3.97
-0.66
-14.25%
TSE:ENGH
Enghouse Systems
24.75
-4.17
-14.42%
TSE:BCE
BCE
30.84
-9.84
-24.19%
TSE:QBR.B
Quebecor
36.34
9.00
32.94%
TSE:RCI.B
Rogers Communication
34.84
-15.08
-30.21%
TSE:CGY
Calian Group Ltd.
45.18
-8.78
-16.27%
Haivision Systems, Inc. Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -7.13% | Next Earnings Date: Jun 11, 2025
Earnings Call Sentiment Neutral
The call highlighted successful strategic transformations and partnerships that position Haivision well for future growth. However, the company faces challenges in revenue due to ongoing transitions and changes in U.S. government spending behavior.Highlights
Successful Completion of 2-Year Strategic Plan
Haivision completed its 2-year strategic plan, leading to significant EBITDA and profitability transformation.
Growth in Control Room Sales
Despite ongoing transition, control room sales showed growth in Q4 with a growing long-term sales pipeline.
Strong Partnerships and Strategic Developments
Partnership with Shield AI and involvement in the Air5G project with Airbus Defense and Space, including a CAD 82.6 million contract with the U.S. Navy.
Improved Financial Metrics
Gross margins improved by 440 basis points, operating margin increased by 109%, and adjusted EBITDA up by 115%.
Positive Cash Generation
Generated CAD 24 million in cash over the strategic period.
Lowlights
Revenue Decline
Q4 revenue decreased by CAD 5.6 million year-over-year, and fiscal 2024 revenue decreased by CAD 10.3 million from the prior year.
Impact of U.S. Government Spending Changes
Lack of expected revenue increase from U.S. Government in Q4 due to budget changes and continuing resolutions.
Challenges in Control Room Business Transition
Transition from integrator to manufacturer affected revenue, with third-party component and professional services revenue declining.
No Guidance Provided for Fiscal 2025
Due to dynamic factors, including the U.S. Navy contract timing and market uncertainties, the company decided not to provide revenue guidance.
Company Guidance
During the Haivision Fourth Quarter 2024 Earnings Conference Call, the executives, including CEO Miroslav Wicha and CFO Dan Rabinowitz, highlighted several key metrics and strategic directions for the company. They reported a fiscal year 2024 revenue of CAD 129.5 million, a decrease from the previous year, primarily due to the strategic exit from the House of Worship market and the transition from a systems integrator to a high-margin manufacturing model in the control room business. Despite these changes, the company achieved a 9% revenue growth over two years and improved gross margins by 440 basis points, reaching 73.1% in 2024. Operational efficiency efforts led to a 2.5% reduction in operating expenses and a 115% increase in adjusted EBITDA to CAD 17.3 million. Haivision plans to focus on high revenue growth, anticipating a return to double-digit growth rates by fiscal 2026, supported by strategic partnerships and contracts, including a CAD 82.6 million supply agreement with the U.S. Navy. However, due to uncertainties, especially with U.S. government spending and procurement behaviors, the company has opted not to provide specific guidance for fiscal 2025.Haivision Systems, Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Haivision Systems Reports Q1 2025 Results Amid Strategic Transition
Neutral
Mar 13, 2025
Haivision Systems Inc. reported a decline in revenue for the first quarter of 2025, attributed to delays in procurement processes and a strategic shift from a systems integrator to a manufacturer in the control room space. Despite the revenue drop, the company maintained a consistent cost structure, resulting in a positive Adjusted EBITDA. Haivision’s recent achievements include winning industry awards and securing a significant contract with the U.S. Navy, which are expected to bolster future revenue and enhance its market positioning.
Financial Disclosures
Haivision to Release Q1 Fiscal 2025 Financial Results on March 13
Neutral
Feb 25, 2025
Haivision Systems Inc. has announced that it will release its first quarter fiscal 2025 financial results on March 13, 2025, after market close. The announcement will be followed by a conference call hosted by the management team to discuss the results. This release is significant for stakeholders as it provides insights into the company’s financial health and operational performance, which could impact its market positioning and future strategic decisions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.