Decisionpoint Systems, Inc. (DPSI) | Investment Case

1. Company Snapshot

1.a. Company Description

Decisionpoint Systems, Inc.provides and integrates enterprise mobility and wireless applications solutions that delivers improved productivity and operational advantages to its clients by helping to move business decision points closer to its customers.It makes enterprise software applications accessible to the front-line worker anytime, anywhere.

The company utilizes wireless, mobility, and RFID technologies.It sells, installs, deploys, and repairs mobile computing and wireless systems, such as mobile computers and application software; and related data capture equipment, including bar code scanners and radio frequency identification readers for the retail, warehousing and distribution, healthcare, wholesale distribution, and field sales and service industries.The company also offers lifecycle management, and project management and deployment services; and managed services, such as consulting, technology acquisition, project management, software integration and development, deployment, repair services, service desk, and reverse logistics and end of life disposal services, as well as OnPoint Service Hub, a customer service portal that provides customers real-time asset management and tracking information.

In addition, it provides MobileConductor, a software platform that provides complete in-vehicles solutions; VizeTrace, a software platform that manages RFID installations; and custom software development services, as well as resells specialized independent software vendors applications.The company is headquartered in Laguna Hills, California.

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1.b. Last Insights on DPSI

DecisionPoint Systems, Inc. (DPSI) experienced a 22.0% performance over the past 3 months, driven by the company's Q4 2023 earnings miss and revenue decline year-over-year. The acquisition by Barcoding Holdings, LLC, and subsequent merger, also contributed to the stock's performance. Additionally, the company's software and services revenue, as well as contributions from acquisitions, positively impacted the stock's growth.

1.c. Company Highlights

Last Price	10.22
Change Percentage	0.25%
Open	10.2
Previous Close	10.2
Market Cap ( Millions)	79
Volume	77569
Year High	10.23
Year Low	4.42
M A 50	9.95
M A 200	7.57

FCF Yield	4.57%
Dividend Yield	0.00%
ROE	13.77%
Debt / Equity	50.70%
Net Debt / EBIDTA	72.41%
Price To Book	3.95
Price Earnings Ratio	31.06
Price To FCF	21.89
Price To sales	0.68
EV / EBITDA	10.86

2. Transcript Summary

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3. NewsRoom

Barcoding, Inc. and DecisionPoint Systems Merge to Create Business of Scale

Jul -08

Source: businesswire.com

HASHICORP INVESTOR ALERT BY THE FORMER ATTORNEY GENERAL OF LOUISIANA: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of HashiCorp Inc. - HCP

Jun -14

Source: prnewswire.com

PRESSING INVESTIGATION: The M&A Class Action Firm Investigates Merger and Imminent Vote on June 18, 2024, of HomeStreet, Inc. - HMST

Jun -05

Source: globenewswire.com

STOCKHOLDER INVESTIGATION: The M&A Class Action Firm Announces An Investigation of Stericycle, Inc. - SRCL

Jun -05

Source: prnewswire.com

DecisionPoint (DPSI) Q1 Earnings Miss, Revenues Decline Y/Y

May -16

Source: zacks.com

DecisionPoint Systems (DPSI) Moves 24.5% Higher: Will This Strength Last?

May -02

Source: Zacks Investment Research

SHAREHOLDER INVESTIGATION: The M&A Class Action Firm Announces An Investigation of DecisionPoint Systems, Inc. - DPSI

May -01

Source: prnewswire.com

Shareholder Alert: Ademi LLP investigates whether DecisionPoint Systems, Inc. has obtained a Fair Price in its Going Private Transaction with Graham Partners

May -01

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.74%)

6. Segments

Hardware and Software

Expected Growth: 5%

Decisionpoint Systems, Inc.'s 5% growth in Hardware and Software is driven by increasing demand for IoT-enabled devices, rising adoption of cloud-based solutions, and growing need for digital transformation across industries. Additionally, the company's focus on innovation, strategic partnerships, and expansion into new markets contribute to its growth momentum.

Services

Expected Growth: 4%

Decisionpoint Systems, Inc.'s services growth is driven by increasing demand for digital transformation, IoT adoption, and supply chain optimization. The company's expertise in RFID, mobility, and cloud-based solutions resonates with customers seeking operational efficiency and cost savings. Additionally, strategic partnerships and expanding into new markets contribute to the growth momentum.

Consumables

Expected Growth: 7%

Decisionpoint Systems, Inc.'s Consumables segment growth of 7% is driven by increasing adoption of mobile computing and automation technologies, leading to higher demand for ruggedized and specialized devices. Additionally, the rise of e-commerce and same-day delivery has boosted demand for barcode scanners and other consumable products, further fueling growth.

7. Detailed Products

Field Services Management

A comprehensive solution for managing field services, including work order management, scheduling, and dispatching.

Mobile Workforce Management

A platform that enables real-time tracking and management of mobile workers, including task assignment, route optimization, and performance analytics.

IoT and Sensor-Based Solutions

A range of IoT and sensor-based solutions for remote monitoring, asset tracking, and predictive maintenance.

Data Analytics and Insights

A suite of data analytics tools that provide real-time insights and business intelligence to inform operational decisions.

Cloud-Based Enterprise Software

A range of cloud-based enterprise software solutions for ERP, CRM, and SCM, designed to improve operational efficiency and reduce costs.

8. Decisionpoint Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Decisionpoint Systems, Inc. is medium because while there are some substitutes available, they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Decisionpoint Systems, Inc. is low because customers do not have many alternatives and the company has a strong brand reputation.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Decisionpoint Systems, Inc. is medium because while suppliers have some bargaining power, the company has a diverse supplier base.

Threat Of New Entrants

The threat of new entrants for Decisionpoint Systems, Inc. is high because the industry has low barriers to entry and new entrants can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry for Decisionpoint Systems, Inc. is high because the industry is highly competitive and there are many players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	25.86%
Debt Cost	3.95%
Equity Weight	74.14%
Equity Cost	13.75%
WACC	11.21%
Leverage	34.88%

11. Quality Control: Decisionpoint Systems, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

ON24

A-Score: 4.6/10

Value: 6.2

Growth: 4.0

Quality: 4.2

Yield: 4.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

PROS

A-Score: 4.5/10

Value: 5.2

Growth: 6.6

Quality: 5.0

Yield: 0.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

Vimeo

A-Score: 4.2/10

Value: 1.8

Growth: 7.6

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 1.7

1-Year Total Return ->

PAR Technology

A-Score: 3.6/10

Value: 7.6

Growth: 3.9

Quality: 4.5

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

Decisionpoint Systems

A-Score: 3.4/10

Value: 3.9

Growth: 4.8

Quality: 5.3

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

Everbridge

A-Score: 3.4/10

Value: 3.6

Growth: 7.2

Quality: 2.4

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

4.66%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.21%

Decisionpoint Systems, Inc. - US24345A5074

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DPSI

1.c. Company Highlights

Strong Momentum

Average Yield

Medium Volatility

Earnings Miss

Fairly Valued

Average Growth

Stable Momentum

Average Quality

More Volatile

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.74%)

6. Segments

Hardware and Software

Expected Growth: 5%

Services

Expected Growth: 4%

Consumables

Expected Growth: 7%

7. Detailed Products

Field Services Management

Mobile Workforce Management

IoT and Sensor-Based Solutions

Data Analytics and Insights

Cloud-Based Enterprise Software

8. Decisionpoint Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Decisionpoint Systems, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.22$

Current Price

10.22$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA