Gary A. Griffiths, president and CEO of iPass (IPAS, Financial), purchased 40,000 shares on Nov. 8, according to a Form 4 filing with the Securities and Exchange Commission. The shares were purchased in one transaction for $1.53 per share. Griffiths now owns a total of 785,000 shares.
Founded in 1996, the Silicon Valley-based company is a SaaS (Software-as-a Service) company that provides corporations with access to global Wi-Fi via the world’s largest Wi-Fi network. The company offers its services in 120 countries with 57 million hotspots worldwide. IPass provides its services in planes, trains, hotels, airports, cafes, restaurants and more. The company offers its cloud-based global Wi-Fi services to corporations exclusively. It currently owns 28 patents.
IPass has a market cap of $117.17 million, an enterprise value of $84.15 million, a price-earnings (P/E) ratio of 5.39, a price-book (P/B) ratio of 5.43 and a quick ratio of 2.27.
According to GuruFocus, iPass has a 6 of 10 financial strength rating with no debt. Its Beneish M-Score of -3.13 suggests the company is a manipulator of its financial statements. The company also has a 2 of 10 profitability and growth rating. It has an operating margin of -16.38%, a net margin of -17.49%, a ROE of -47.66%, a ROA of -27.96%, three-year EBITDA growth  46% and three-year EPS growth of 35.70%.
IPass’ market price has tumbled by 73% over the previous decade and it has also seen significant declines in its reported revenue and gross profit.
From December of 2005 to December of 2015, the company’s revenue has declined from a reported $169.37 million to $62.56 million, which is an average annual decline of 9.47% over the past decade.
The company’s gross profit has also been in long-term decline, from a reported $106.32 million in December 2005 to $24.30 million in December of 2015. That is an average annual decline in gross profit of approximately 16%.
Below is a Peter Lynch chart that shows iPass is trading above its intrinsic value.
Disclosure:Â Author does not own any shares of this company.
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