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1. Company Snapshot

1.a. Company Description

KVH Industries, Inc.designs, develops, manufactures, and markets mobile connectivity products and services for the marine and land mobile markets in the United States and internationally.The company operates through Mobile Connectivity and Inertial Navigation segments.


The company offers mobile satellite TV and communications products; two-way satellite communications systems; onboard TracPhone terminals and hub equipment; data management software; and Iridium OpenPort hardware products and services.It also offers airtime plans that enable customers to obtain Internet and voice services; and value-added, and news and radio content services to retail customers.In addition, the company provides navigation, guidance, and stabilization products for the commercial and defense markets comprising precision fiber optic gyro-based systems; tactical navigation systems for tactical trucks and light armored vehicles; and commercial products, such as navigation and positioning systems for various applications consisting of precision mapping, dynamic surveying, autonomous vehicles, train location control and track geometry measurement systems, industrial robotics, and optical stabilization applications.


Further, it offers content, maritime news, sporting content, and television programming delivery services; movie distribution services; and services and support for the mini-VSAT Broadband solution, as well as IoT connectivity as a service.The company sells its mobile communications products through a network of independent retailers, chain stores, distributors, and service providers, as well as to manufacturers of vessels, maritime equipment, and vehicles; and navigation products directly to the United States and foreign governments, and government contractors, as well as through authorized independent sales representatives.It also sells and leases its products directly to end users.


KVH Industries, Inc.was founded in 1978 and is headquartered in Middletown, Rhode Island

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1.b. Last Insights on KVHI

KVH Industries' recent performance was driven by its Q3 2025 earnings release, which likely showcased the company's progress in its maritime and land-based connectivity solutions. The management team, led by CEO Brent Bruun and CFO Anthony Pike, hosted an investor conference call to discuss the results, indicating transparency and engagement with investors. The company's decision to report its financial results and host a conference call demonstrates its commitment to keeping stakeholders informed. A recent rating from Quilty Space Inc.'s Research Division suggests that analysts are closely monitoring the company's performance.

1.c. Company Highlights

2. KVH Industries' Q3 Earnings: A Mixed Bag

KVH Industries reported a service revenue of $25.4 million for Q3, a 10% increase from the prior quarter and a 4% increase from Q3 2024. However, airtime gross margin came in at 31.9%, down by 3.9% compared to the prior-quarter gross margin of 35.8%, driven by the reduction in GEO airtime margins. The company's EPS was -$0.12, missing estimates of $0.01. Revenue growth was driven by a new record for vessel subscriber growth, with the total subscribing vessel count increasing by 11% to approximately 9,000 compared to the second quarter.

Publication Date: Nov -23

📋 Highlights
  • Q3 Service Revenue:: $25.4M (10% QoQ increase, 4% YoY growth).
  • Vessel Subscriber Growth:: 11% increase to ~9,000 subscribing vessels QoQ.
  • Terminal Shipments:: 1,600 LEO terminals shipped, a new quarterly record.
  • Airtime Gross Margin:: Declined to 31.9% (down 3.9% QoQ due to lower GEO margins).
  • Asia-Pacific Acquisition:: Completed purchase of a satellite service provider in the region.

LEO Services Drive Growth

The demand for LEO services is being driven by the ongoing demand for the Starlink and OneWeb LEO services provided by KVH Industries. The company shipped roughly 1,600 terminals, a new record. According to Brent Bruun, "the demand is really pretty evenly spread between all regions and all types of vessels." This growth is attributed to both competitive wins and new installs, with the service plans and price per bit delivered opening up the market to the lower end.

Competition from Amazon

When asked about the potential competition from Amazon, Brent Bruun stated that "on paper, yes, it looks like it will be compelling." However, he emphasized that the proof is in the pudding, and the company will need to test the service before making any conclusions. Analysts estimate next year's revenue growth at 14.1%, indicating a positive outlook for the company.

Valuation Metrics

KVH Industries' current valuation metrics are as follows: P/E Ratio is -18.42, P/B Ratio is 0.84, P/S Ratio is 1.08, and EV/EBITDA is 11.42. The company's Return on Invested Capital (ROIC) is -6.05%, and Return on Equity (ROE) is -4.51%. These metrics indicate that the stock may be undervalued, but the negative earnings and cash flow metrics need to be considered.

3. NewsRoom

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KVH Industries, Inc. (KVHI) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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KVH Industries Reports Third Quarter 2025 Results

Nov -06

Source: globenewswire.com

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KVH Industries to Host Third Quarter Conference Call on November 6, 2025

Nov -04

Source: globenewswire.com

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KVH Industries Is Growing For The First Time In Two Years, But Remains Unprofitable

Aug -21

Source: seekingalpha.com

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KVH Industries, Inc. (KVHI) Q2 2025 Earnings Call Transcript

Aug -08

Source: seekingalpha.com

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Kvh (KVHI) Q2 Profit Up Revenue Down 7%

Aug -07

Source: fool.com

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KVH Industries Reports Second Quarter 2025 Results

Aug -07

Source: globenewswire.com

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KVH Industries to Host Second Quarter Conference Call on August 7, 2025

Aug -04

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.59%)

6. Segments

Service

Expected Growth: 8.3%

KVH Industries' 8.3% growth in its service segment is driven by increasing demand for its satellite-based connectivity solutions, particularly in the maritime and defense industries. The company's strategic partnerships, expanding global footprint, and investments in innovative technologies such as VSAT and IoT also contribute to its growth momentum.

Mobile Connectivity

Expected Growth: 10.47%

KVH Industries' Mobile Connectivity segment growth of 10.47% is driven by increasing demand for high-speed internet at sea, expansion of 4G and 5G networks, and growing adoption of IoT devices in the maritime industry. Additionally, the company's strategic partnerships and innovative product offerings, such as its TracPhone terminals, are contributing to its market share growth.

7. Detailed Products

VSAT Broadband

A high-speed, two-way satellite broadband communication system for maritime, land, and air applications

Fiber Optic Gyro (FOG) Sensors

High-performance, fiber optic-based inertial sensors for navigation, stabilization, and pointing applications

Inertial Measurement Units (IMUs)

High-performance, compact, and ruggedized inertial measurement units for navigation, stabilization, and pointing applications

TACNAV Military Inertial Navigation Systems

High-performance, military-grade inertial navigation systems for land, sea, and air applications

AgileLink Antennas

High-performance, compact, and ruggedized antennas for satellite communication and navigation applications

KVH Watch IoT Connectivity

A secure, end-to-end IoT connectivity solution for remote monitoring and control of equipment and assets

8. KVH Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

KVH Industries, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing competition in the satellite communication industry.

Bargaining Power Of Customers

KVH Industries, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

KVH Industries, Inc. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's long-term relationships with suppliers and its diversified supply chain mitigate this risk.

Threat Of New Entrants

The satellite communication industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to challenge KVH Industries, Inc.'s market position.

Intensity Of Rivalry

The satellite communication industry is highly competitive, with several established players competing for market share. KVH Industries, Inc. faces intense competition from companies such as Intelsat and SES.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.72%
Debt Cost 3.95%
Equity Weight 99.28%
Equity Cost 7.23%
WACC 7.21%
Leverage 0.73%

11. Quality Control: KVH Industries, 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

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A-Score: 4.1/10

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Growth: 1.9

Quality: 4.0

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Growth: 1.2

Quality: 3.5

Yield: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.99$

Current Price

5.99$

Potential

-0.00%

Expected Cash-Flows