Air Industries Group (AIRI) AI Stock Analysis

• Market Cap: $15.76M
• Dividend Yield: N/A
• Average Volume (3M): 46.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -6.77%
• EPS Growth: -192.82%
• Country: US
• Employees: 184
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.01
• Shares Outstanding: 4,775,777
• 10 Day Avg. Volume: 53,751
• 30 Day Avg. Volume: 46,216
• PEG Ratio: 0.27
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -6.87
• Enterprise Value/Market Cap: 2.44
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: 12.54
• 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: 48 Neutral
• Price Target: $3.00 ▼(-2.91% Downside)

The score is held down primarily by weak financial quality (profitability, leverage, and cash flow). Technicals are only modestly constructive, and valuation is constrained by losses (negative P/E). The earnings call provides a meaningful positive offset due to improving margins and reduced losses, but balance-sheet pressures persist.

Positive Factors

Operational Efficiency

Improved operational efficiency with higher gross profit margins indicates effective cost management, enhancing long-term profitability.

Demand and Backlog

Strong backlog and demand suggest sustained revenue streams and market confidence, supporting future growth and stability.

Adjusted EBITDA Growth

Growth in adjusted EBITDA reflects improved core earnings capability, indicating better operational performance and financial health.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Insufficient cash flow generation can strain liquidity, affecting the company's ability to meet obligations and invest in future growth.

Increased Debt

Rising debt levels can exacerbate financial strain, increasing interest obligations and reducing resources available for strategic initiatives.

Air Industries Group Business Overview & Revenue Model

Company Description

Air Industries Group, an aerospace and defense company, designs, manufactures, and sells structural parts and assemblies for mission-critical aerospace and defense applications, and a prime contractor to the U.S. Department of Defense in the United States. The company operates through two segments, Complex Machining and Turbine and Engine Component. The Complex Machining segment offers aircraft landing and arresting gears, engine mounts, flight controls, throttle quadrants, and other components. Its products are deployed on a range of military and commercial aircraft, including Sikorsky's UH-60 Blackhawk, Lockheed Martin F-35 Joint Strike Fighter, Northrop Grumman E2D Hawkeye, the US Navy F-18, and USAF F-16 and F-15 fighter aircraft. The Turbine and Engine Component segment makes components and provides services for aircraft jet engines and ground-power turbines. Its jet engine components are used on the USAF F-15 and F-16, the Airbus A-330, the Boeing 777, and others, as well as ground-power turbine applications. The company's products are used by original equipment manufacturers in the manufacture of fixed wing aircraft, helicopters jet turbine engines, and other complex aerospace and defense products. Air Industries Group was founded in 1979 and is headquartered in Bay Shore, New York.

How the Company Makes Money

Air Industries Group generates revenue through the production and sale of specialized aerospace and defense components, including complex machined parts and assemblies. The company's revenue model is primarily based on contracts with government and commercial customers, which can include fixed-price contracts, cost-plus contracts, and other pricing mechanisms. Key revenue streams include sales from both new products and aftermarket services, as well as repair and overhaul services for existing components. Additionally, strategic partnerships with major defense contractors and participation in government contracts, particularly within the defense sector, significantly contribute to its earnings. The company also benefits from long-term relationships with clients, providing a steady stream of income.

Air Industries Group Financial Statement Overview

Summary

Air Industries Group shows strong revenue growth but struggles with profitability and cash flow management. High leverage and negative returns on equity indicate financial instability.

Income Statement

Air Industries Group shows a significant revenue growth in the TTM period, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins. Gross profit margins are moderate but not enough to offset the high costs and negative net income.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. The negative return on equity suggests that the company is not generating sufficient returns on its equity base. However, the equity ratio is relatively stable, showing a balanced asset structure.

Cash Flow

The cash flow statement highlights challenges in generating positive free cash flow, with negative growth and low coverage ratios. Operating cash flow is insufficient to cover net income, indicating potential liquidity issues. The company needs to improve cash generation to support its operations and reduce financial strain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.02M	55.11M	51.52M	53.24M	58.94M	50.10M
Gross Profit	8.80M	8.93M	7.43M	7.45M	10.25M	6.51M
EBITDA	3.06M	3.45M	2.75M	3.33M	6.19M	1.13M
Net Income	-2.01M	-1.37M	-2.13M	-1.08M	1.63M	1.10M
Balance Sheet
Total Assets	57.95B	51.01M	50.72M	53.81M	53.42M	57.78M
Cash, Cash Equivalents and Short-Term Investments	126.00M	753.00K	346.00K	281.00K	627.00K	2.50M
Total Debt	925.00M	27.87M	25.77M	28.51M	27.29M	31.90M
Total Liabilities	39.11B	36.06M	35.52M	36.98M	36.04M	42.67M
Stockholders Equity	18.84B	14.95M	15.19M	16.84M	17.39M	15.11M
Cash Flow
Free Cash Flow	-4.76M	-1.98M	2.74M	-1.91M	2.70M	-5.32M
Operating Cash Flow	-938.00K	324.00K	4.86M	448.00K	4.06M	-1.52M
Investing Cash Flow	-3.61M	-2.29M	-2.11M	-2.36M	-1.36M	-3.80M
Financing Cash Flow	8.42M	2.37M	-2.69M	1.57M	-4.58M	6.53M

Air Industries Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIRI, the sentiment is Positive. The current price of 3.09 is below the 20-day moving average (MA) of 3.11, above the 50-day MA of 3.03, and below the 200-day MA of 3.25, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 84.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIRI.

Air Industries Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVU	50 Neutral	$53.27M	-88.89	-2.26%	―	-13.52%	-103.42%
AIRI	48 Neutral	$15.76M	-6.02	-11.98%	―	-6.77%	-192.82%
SIF	44 Neutral	$37.29M	-52.74	-2.77%	―	-13.90%	87.70%
MNTS	41 Neutral	$14.45M	-0.06	―	―	-63.81%	81.84%
XTIA	41 Neutral	$53.44M	-0.11	-640.32%	―	―	―
ASTC	39 Underperform	$6.12M	-0.43	-54.89%	―	3.06%	-14.62%