Autoscope Technologies (AATC) AI Stock Analysis

• Market Cap: $30.28M
• Dividend Yield: 26.72%
• Average Volume (3M): 10.21K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.21
• Revenue Growth: -20.51%
• EPS Growth: -65.68%
• Country: US
• Employees: 36
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.09
• Shares Outstanding: 5,407,707
• 10 Day Avg. Volume: 13,538
• 30 Day Avg. Volume: 10,211
• PEG Ratio: -0.33
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 3.53
• P/FCF Ratio: 6.98
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 3.56
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: 15.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $6.00 ▲(1.35% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is driven primarily by solid financial performance (strong cash flow, healthy profitability, and low leverage) but is held back by weak technicals (below major moving averages with negative MACD and low RSI) and a mixed valuation signal (high dividend yield offset by a negative P/E).

Positive Factors

Strong cash generation

TTM operating and free cash flow closely tracking net income indicates high earnings quality and sustainable internal funding. Durable cash generation supports working capital, funds reinvestment or service of obligations, and reduces reliance on external financing over the next several months.

Low leverage and positive ROE

Low debt relative to equity plus positive ROE gives the company financial flexibility and a lower solvency risk profile. This structural strength supports continued investment in product development and bidding on multi-year municipal projects without aggressive refinancing needs.

Healthy margins and pricing power

Sustained gross and operating margins signal durable pricing power and operational efficiencies. Even if revenue fluctuates, margin resilience can preserve cash generation and profitability, supporting long-term contract fulfillment and modest reinvestment in product improvements.

Negative Factors

Material revenue decline

A ~34% TTM revenue decline is a significant structural headwind that reduces scale and can erode market presence. Persistent revenue weakness pressures margins, lowers operating leverage, and constrains ability to invest in sales or R&D over the coming months.

Balance-sheet contraction (assets & equity)

A step-down in assets and equity reduces balance-sheet flexibility and increases sensitivity to shocks. With a smaller asset base and equity cushion, the firm has less capacity to finance larger municipal projects or absorb further revenue declines without altering capital allocation.

Declining and variable free cash flow

Although cash generation is currently a strength, declining and historically variable free cash flow raises predictability risk. Reduced FCF consistency complicates planning for capex, multi-year contract delivery, and any discretionary returns, limiting strategic optionality.

Autoscope Technologies Business Overview & Revenue Model

Company Description

Autoscope Technologies Corporation develops and markets video and radar processing products for use in intersection control, highway, bridge and tunnel traffic management, and traffic data collection applications in the Asia Pacific, Europe, the Middle East, and North America. It operates in two segments, Intersection and Highway. The company provides Autoscope video systems that process video input from a traffic scene in real time and extracts the traffic data, including vehicle presence, bicycle presence/differentiation, counts, speed, length, time occupancy, turning movements, and flow rate; and RTMS radar systems that use radar to measure vehicle presence, volume, occupancy, speed, and classification information for roadway monitoring applications. It also offers IntellitraffiQ software that provides traffic measurement and data collection across large and small areas. The company markets and sells its products to end users comprising federal, state, city, and county departments of transportation, port, highway, tunnel, and other transportation authorities, as well as system integrators or other suppliers of systems and services who are operating under subcontracts in connection with road construction contracts. Autoscope Technologies Corporation was founded in 1984 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

AATC generates revenue primarily through the sale of its hardware and software products, including traffic cameras, sensors, and analytics solutions. The company also earns income from service contracts, which provide ongoing maintenance and technical support for its systems. Additionally, AATC partners with government agencies and municipalities to implement large-scale traffic management projects, which often involve multi-year contracts that secure substantial revenue streams. The growing demand for smart city solutions and infrastructure modernization further contributes to AATC's earnings potential.

Autoscope Technologies Financial Statement Overview

Summary

Profitability and margins remain solid, cash generation is strong with good earnings quality, and leverage is low. Offsetting factors are a material TTM revenue decline, some margin compression versus the unusually strong 2023–2024 period, and a step-down in assets/equity that suggests recent contraction.

Income Statement

TTM (Trailing-Twelve-Months) profitability remains solid with strong gross and operating margins and a healthy net margin, indicating good pricing power and cost control. However, revenue is down materially versus the prior year (TTM revenue decline), and profitability has compressed from the unusually strong 2023–2024 levels, which signals a weaker near-term growth trajectory and some earnings volatility.

Balance Sheet

Leverage is low (debt is a small fraction of equity) and returns on equity are positive, supporting a strong financial risk profile. The main drawback is the notable step-down in equity and assets from 2023/2024 to TTM (Trailing-Twelve-Months), which can reduce balance-sheet flexibility and suggests recent contraction or distribution of capital.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are strong and closely track net income, supporting earnings quality. Cash flow also comfortably covers debt service capacity, but free cash flow has declined versus the prior period and has historically been more variable (including weak/free cash flow in earlier years), which adds some consistency risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	9.01M	13.63M	13.13M	12.40M	13.24M
Gross Profit	8.65M	12.99M	12.40M	9.47M	10.23M
EBITDA	2.40M	6.88M	5.70M	1.00M	4.13M
Net Income	1.39M	4.50M	6.63M	1.20M	2.29M
Balance Sheet
Total Assets	12.05M	19.17M	25.65M	21.10M	22.37M
Cash, Cash Equivalents and Short-Term Investments	2.67M	7.45M	12.43M	4.32M	8.23M
Total Debt	1.52M	1.57M	1.64M	1.68M	1.73M
Total Liabilities	1.80M	2.04M	3.10M	2.48M	2.57M
Stockholders Equity	10.25M	17.13M	22.55M	18.62M	19.79M
Cash Flow
Free Cash Flow	4.57M	4.94M	5.47M	50.00K	-10.00K
Operating Cash Flow	4.64M	5.16M	5.48M	668.00K	2.56M
Investing Cash Flow	850.00K	2.95M	2.80M	-4.98M	-2.57M
Financing Cash Flow	-9.11M	-10.22M	-2.87M	-2.63M	-229.00K

Autoscope Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AATC, the sentiment is Negative. The current price of 5.92 is above the 20-day moving average (MA) of 5.72, above the 50-day MA of 5.78, and below the 200-day MA of 6.57, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 28.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AATC.

Autoscope Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AATC	62 Neutral	$30.28M	22.87	13.03%	26.72%	-20.51%	-65.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ELSE	61 Neutral	$15.14M	19.89	2.80%	―	5.36%	-8.88%
LGL	58 Neutral	$39.61M	11.57	2.33%	―	14.07%	153.24%
NSYS	48 Neutral	$26.69M	-43.07	-7.87%	―	-13.94%	-157.49%
DAIO	42 Neutral	$25.08M	-5.93	-30.89%	―	-3.22%	-102.88%