TOP IDEAS: AirIQ Inc.
(TSXV: IQ) looks to compound growth with release of new vehicle and video data in one fleet management solution, providing
camera surveillance for trucking and delivery vehicles.
price accumulation target of $0.20 for AirIQ Inc. was reached on July 5th,
2019. For the record, we do not revise share price targets for our Investorfile
Top Ideas - Small Cap Value Stocks. We have positioned our blog to be one of
the first providers of a pragmatic perspective of a small cap company stock's
potential worth, where there may be uncovered value that has been largely
overlooked by the investment community.
summer Investorfile was bullish on the prospects for AirIQ'S fiscal 2020 (See: AirIQ is set
to deliver strong growth for the upcoming fiscal 2020 results).
Since that blog post, the Company has delivered.
the year ended March 31, 2020, AirIQ’s total
revenues topped C$5 million, up 37%, of which about C$3 million was recurring.
Equally impressive is that earnings before interest,
taxes, depreciation, amortization and stock-based compensation (EBITDAS)
increased by 88% to over C$900,000 which lead to net income of over C$713,000,
an increase of 209%. The Company also generated earnings per share (EPS) of
Inc. (TSXV: IQ – C$0.32) operates in the growing telematics industry and, for
over 20 years, the Company has been providing Global Positioning Service (GPS)
solutions to customers throughout North America.
With its intuitive web-based platform, AirIQ utilizes GPS devices to provide
fleet operators and vehicle owners with a suite of asset management solutions to
reduce costs, improve efficiency and monitor, manage and protect their assets.
Services are available online or via a mobile app and include instant vehicle
locating; boundary notification; automated inventory and maintenance reports;
security alerts; electronic logging; and vehicle disabling and unauthorized
when AirIQ wins orders for its suite of asset management solutions, it has two
distinct revenue components. The hardware component is revenue which is earned
on delivery, while the GPS and video surveillance monitoring is recurring
Earlier this month, AirIQ announced a next-generation solution to its product offering to address what the Company’s
Management says is a huge and under-penetrated market poised for growth. The
Company says its new product IQ-CAM offers a new combination of vehicle and
video data in one fleet management solution, allowing its customers to see what
is happening on the road while continuing to monitor and manage their
commercial vehicle fleets for safety, maintenance and performance.
to AirIQ, the IQ-CAM offers live video streaming from a dual-camera system with
both road-facing and in-cab-facing cameras. Its features include real-time video;
distracted driving detection, risky driving event alerts such as harsh braking
and sharp turns; tampering and vibration alerts notifying you of possible
break-in attempts; night vision and historical video reviews; as well as
vehicle tracking and a full suite of fleet-management reports. The Company says
IQ-CAM is easy to install and operate, and provides enhanced vehicle and driver
monitoring, improved safety for both drivers and vehicles and video evidence to
support theft, accidents and insurance claims.
Investorfile is very encouraged by the future sales opportunities of
AirIQ’s entry into the mobile camera surveillance
market from existing and new customers. We are also encouraged by the Company’s
Q1 financial report for fiscal 2021 which ended June 30, 2020 and would have
been impacted by a slowing economy due to COVID-19. Despite the pandemic, a key
financial metric for the Company is its growth in recurring revenues, which was
up 11% compared to last year’s Q1 and also up sequentially from the preceding
quarter. Recurring revenues generate strong gross margins for the Company which
then has positive impact upon its profitability. AirIQ’s net income for fiscal
Q1 2021 was up 12% to C$181,000 generating C$0.01 EPS for the quarter.
in profitability has contributed to the Company’s strong balance sheet. AirIQ
has over C$2 million in cash and is debt-free.
that AirIQ’s stock price is already up 300 % in value since Investorfile first
recommended the Company as one of its Top Ideas (See: AirIQ is a
technology company small in size but the stock is big in value). But the Company’s new camera surveillance solution for
commercial trucks may be a significant growth opportunity. Also, we would be
remiss to not mention that one of Investorfile’s other Top Ideas: Gatekeeper Systems
(TSXV: GSI), which is a provider of camera surveillance solutions for school
and transit buses, has seen significant growth in its business and that stock
is currently up 464% since we first launched coverage as well. This
provides some validation as to the growth potential in the mobile surveillance
marketplace in general.
AirIQ has approximately 29.8 million shares
The Company's website: www.airiq.com
Author's share ownership disclosure: IQ - Yes
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is not engaged in an investor relations agreement with AirIQ Inc. nor has it received any compensation from AirIQ Inc. the preparation or distribution of this article.
author of this article has acquired and may trade shares of AirIQ Inc. through open market transactions and for investment purposes