AstroNova (ALOT) AI Stock Analysis

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AstroNova

(NASDAQ:ALOT)

46Neutral

AstroNova's overall stock score reflects significant financial challenges, particularly in declining profitability and cash flow. While there are opportunities for growth with new product introductions and strategic initiatives, the current bearish technical indicators and unattractive valuation metrics contribute to a cautious outlook.

AstroNova (ALOT) vs. S&P 500 (SPY)

Market Cap

$64.22M

Dividend YieldN/A

Average Volume (3M)13.65K

Price to Earnings (P/E)16.9

Beta (1Y)0.67

Revenue Growth2.16%

EPS Growth-404.03%

CountryUS

Employees441

SectorTechnology

Sector Strength66

IndustryComputer Hardware

Share Statistics

EPS (TTM)-2.07

Shares Outstanding7,528,838

10 Day Avg. Volume14,795

30 Day Avg. Volume13,648

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.48

Price to Cash Flow (P/CF)-3.90

P/FCF Ratio0.00

Enterprise Value/Market Cap2.22

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit2.70

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

AstroNova Business Overview & Revenue Model

Company DescriptionAstroNova, Inc. (ALOT) is a diversified manufacturer specializing in the design, development, and production of a wide range of products within the aerospace, defense, and commercial sectors. The company operates through two primary segments: Product Identification and Test & Measurement. AstroNova's Product Identification segment focuses on providing digital color label printers and consumables, while the Test & Measurement segment offers data acquisition systems and airborne printers used in flight deck and cabin environments.

How the Company Makes MoneyAstroNova generates revenue through the sale of its hardware products and the recurring sales of consumables like labels and inks. In the Product Identification segment, the company sells digital color label printers and related supplies, which provide a steady stream of recurring revenue from consumables. In the Test & Measurement segment, revenue is primarily derived from the sale of data acquisition systems and airborne printers, which are used extensively in aerospace applications. Additionally, AstroNova may engage in service contracts and support agreements that provide an additional revenue stream. Key partnerships with aerospace manufacturers and commercial enterprises further bolster the company's income through collaborative projects and long-term contracts.

AstroNova Financial Statement Overview

Summary

AstroNova faces significant financial challenges, with declining profitability and cash flow issues. Revenue growth is modest, but negative profit margins and increased leverage pose risks. The company needs to improve its financial stability and shareholder returns.

Income Statement

―

AstroNova's revenue slightly increased by 2.16% from 2024 to 2025, showing stability in sales. However, the company faced a significant decline in profitability, with a negative EBIT margin of -5.71% and a net profit margin of -9.58% in 2025. The gross profit margin also declined from previous years, indicating pressure on cost controls or pricing strategy.

Balance Sheet

The company’s debt-to-equity ratio increased to 0.58 in 2025, indicating a higher reliance on debt financing. The equity ratio stood at 52.02%, showcasing a stable equity base. However, the return on equity turned negative at -19.12% in 2025 due to the negative net income, reflecting poor returns for shareholders.

Cash Flow

―

AstroNova's operating cash flow decreased significantly from 2024 to 2025, impacting its ability to generate cash from core operations. The free cash flow shrank by 67.93%, indicating potential challenges in covering capital expenditures and financing needs internally.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
151.28M	148.09M	142.53M	117.48M	116.03M
	Gross Profit
52.75M	53.69M	48.16M	43.74M	41.36M
	EBIT
-8.64M	8.80M	1.65M	235.00K	-3.55M
	EBITDA
-4.30M	13.04M	10.06M	8.25M	8.42M
	Net Income Common Stockholders
-14.49M	4.69M	2.66M	6.43M	1.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.05M	4.53M	3.95M	5.28M	11.44M
	Total Assets
145.59M	133.25M	138.51M	114.95M	115.47M
	Total Debt
48.52M	22.44M	30.12M	9.96M	17.92M
	Net Debt
44.28M	17.91M	26.17M	4.69M	6.48M
	Total Liabilities
69.84M	42.97M	54.14M	33.94M	40.79M
	Stockholders Equity
75.75M	90.28M	84.37M	81.01M	74.68M
Cash Flow		Free Cash Flow
3.68M	11.48M	-3.17M	-402.00K	12.96M
	Operating Cash Flow
4.85M	12.35M	-2.94M	1.39M	15.54M
	Investing Cash Flow
-20.27M	-875.00K	-17.26M	-1.80M	-2.59M
	Financing Cash Flow
15.38M	-10.97M	18.75M	-5.56M	-5.14M

AstroNova Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price8.90

Price Trends

50DMA

9.42

Negative

100DMA

10.98

Negative

200DMA

12.64

Negative

Market Momentum

MACD

-0.28

Negative

RSI

54.17

Neutral

STOCH

80.61

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALOT, the sentiment is Neutral. The current price of 8.9 is above the 20-day moving average (MA) of 8.35, below the 50-day MA of 9.42, and below the 200-day MA of 12.64, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 80.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALOT.

AstroNova Risk Analysis

AstroNova disclosed 29 risk factors in its most recent earnings report. AstroNova reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

AstroNova Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.94B	10.48	-7.04%	2.99%	7.55%	-12.20%
KTCC	52 Neutral	$26.04M	―	-6.35%	―	-17.39%	-279.43%
OSS	49 Neutral	$52.13M	―	-40.85%	―	-10.19%	-97.96%
INVE	49 Neutral	$78.74M	―	-21.97%	―	-63.51%	-326.18%
TACT	47 Neutral	$35.89M	―	-28.16%	―	-40.27%	-306.30%
ALOT	46 Neutral	$64.22M	16.92	-17.45%	―	2.16%	-404.03%
QMCO	41 Neutral	$73.03M	―	33.98%	―	-17.08%	-223.70%

* Technology Sector Average

Performance Comparison

ALOT

AstroNova

8.90

-8.69

-49.40%

INVE

Identiv

3.34

-1.77

-34.64%

KTCC

Key Tronic

2.42

-1.98

-45.00%

QMCO

Quantum

11.19

2.19

24.33%

TACT

Transact Technologies

3.56

-1.59

-30.87%

OSS

One Stop Systems

2.42

-0.58

-19.33%

AstroNova Earnings Call Summary

Earnings Call Date:Apr 14, 2025

(Q4-2025)

% Change Since: 4.34%|

Next Earnings Date:Jun 05, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook for AstroNova, with notable achievements in the Aerospace segment and strategic product launches countered by significant challenges, particularly with the MTEX acquisition. Financial performance was impacted by lower revenue and profitability, but cost-saving measures and new product introductions offer potential for future growth.

Q4-2025 Updates

Positive Updates

Record Revenue in Aerospace Segment

Aerospace segment, previously known as Test & Measurement, had record revenue of $48.9 million, contributing approximately one-third of consolidated sales, with an operating profit of 22.8% and a five-year CAGR of 17.4%.

Successful Transition to ToughWriter Printers

Transition to higher-margin ToughWriter branded printers, which are expected to account for 86% of total printer deliveries by the end of fiscal year, contributing to a $4 million reduction in royalty obligations.

Strong Recurring Revenue Model

Recurring revenue accounted for 71% of consolidated sales, driven by consumables and service agreements, contributing to more predictable revenue streams.

Introduction of Next-Generation Products

Plans to introduce five next-generation products based on MTEX's print engine technology, which will enhance flexibility, reduce ink costs, and increase consumables revenue.

Cost-Saving Restructuring Plan

Execution of a restructuring plan expected to deliver $3 million in annual cost savings by rightsizing the product portfolio to focus on higher-margin products.

Negative Updates

Challenges with MTEX Acquisition

Difficult integration of MTEX acquisition with significant organizational and operational hurdles, including cultural changes and compliance issues, impacting performance.

Lower Revenue and Gross Profit Margin

Net revenue for the fourth quarter was down 5.6%, with gross profit margin decreasing from 37.2% to 34.1% due to lower sales and less favorable product mix.

Goodwill Impairment Charge

A significant $13.4 million non-cash goodwill impairment charge related to the PI segment, largely associated with MTEX, impacting financial results.

Delays and Revenue Decline in Aerospace

Aerospace segment revenue declined by 9.9% due to delayed defense orders and deferred deliveries associated with the Boeing strike.

Reduced Liquidity and Cash Flow

Liquidity decreased by $5 million due to a reduction in the revolver, with cash from operations dropping from $12.4 million to $4.8 million and free cash flow declining significantly.

Company Guidance

During the AstroNova Fiscal Fourth Quarter and Full Year 2025 Financial Results Conference Call, the company provided guidance for fiscal 2026, anticipating net revenue in the range of $160 million to $165 million, representing a year-over-year growth of 7.4% at the midpoint from fiscal 2025. The adjusted EBITDA margin is expected to range from 8.5% to 9.5%, indicating a year-over-year growth of 60 basis points at the midpoint. The guidance reflects the integration of new print engine and ink technology within the Product Identification (PI) segment, expected to contribute in the latter part of the fiscal year, and the continued transition of OEMs and airline direct customers to the ToughWriter branded printers within the Aerospace segment. In fiscal 2025, the Aerospace segment contributed a record $48.9 million in revenue, with a five-year compound annual growth rate of 17.4%, and recurring revenue accounting for 71% of consolidated sales.

AstroNova Corporate Events

Business Operations and Strategy

AstroNova Secures $10M Defense Contract Renewal

Positive

Apr 29, 2025

On April 29, 2025, AstroNova announced it was awarded a renewed multi-year contract valued at approximately $10 million with a leading defense industry customer. The contract involves delivering ToughWriter flight deck printers and ToughSwitch networking solutions over five years, with $1.7 million in product orders expected to be recognized in fiscal 2026. This contract reinforces AstroNova’s strong market position in aerospace printing and networking solutions, highlighting its innovative technology and reliability in demanding military environments. The agreement is expected to enhance AstroNova’s operational efficiencies and reduce inventory requirements.

Spark’s Take on ALOT Stock

According to Spark, TipRanks’ AI Analyst, ALOT is a Neutral.

AstroNova’s overall score reflects significant financial challenges, particularly in declining profitability and cash flow. While new product introductions and strategic restructuring offer potential for future improvement, the current bearish technical indicators and unattractive valuation metrics contribute to a cautious outlook.

To see Spark’s full report on ALOT stock, click here.

Business Operations and Strategy

AstroNova Terminates Employee Stock Purchase Plan

Negative

Apr 28, 2025

AstroNova, Inc. has announced the termination of its 2022 Employee Stock Purchase Plan (ESPP), effective April 22, 2025. Following the termination, all participant account balances were refunded promptly, impacting the company’s employee benefits structure.

Spark’s Take on ALOT Stock

According to Spark, TipRanks’ AI Analyst, ALOT is a Neutral.

AstroNova’s overall score reflects significant financial challenges, particularly in declining profitability and cash flow issues. While there is promise in new product launches and restructuring plans, the bearish technical indicators and unattractive valuation metrics contribute to a cautious outlook. The recent earnings call highlighted both strengths and challenges, indicating that while there are strategic efforts underway, they will take time to materially impact performance.

To see Spark’s full report on ALOT stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy

AstroNova Unveils New Digital Label Presses at FESPA

Positive

Apr 21, 2025

On April 21, 2025, AstroNova announced the launch of new high-performance digital label presses and a direct-to-package printer at the FESPA Global Print Expo 2025 in Berlin. These products are designed to enhance speed, flexibility, and cost-efficiency in the light to medium production segment, marking a significant advancement in the company’s Product Identification segment. The launch follows the integration of MTEX technology and expansion of AstroNova’s sales force, which has improved order rates and is expected to result in $3 million in annualized cost savings by the third quarter of fiscal 2026. The restructuring of the leadership team aims to streamline operations and improve financial performance.

Spark’s Take on ALOT Stock

According to Spark, TipRanks’ AI Analyst, ALOT is a Neutral.

AstroNova faces significant financial challenges, with declining profitability and cash flow issues. While there is promise in new product launches and restructuring plans, technical indicators suggest a bearish trend, and valuation metrics are unattractive. The recent earnings call highlighted both strengths and challenges, indicating a cautious outlook.

To see Spark’s full report on ALOT stock, click here.

Executive/Board ChangesBusiness Operations and Strategy

AstroNova Sets 2026 Executive Incentive Plan Goals

Neutral

Apr 18, 2025

On April 14, 2025, AstroNova‘s Human Capital and Compensation Committee set performance goals and target payouts for the Senior Executive Short-Term Incentive Plan (STIP) for fiscal year 2026. The plan involves key executives, including the CEO, CFO, and CTO, with target award percentages of 80%, 45%, and 35% of their base salaries, respectively. The bonuses are contingent on achieving specific adjusted EBITDA thresholds, with potential incremental bonuses for exceeding targets. The STIP includes limitations, such as awards not exceeding 15% of the company’s consolidated operating income.

Spark’s Take on ALOT Stock

According to Spark, TipRanks’ AI Analyst, ALOT is a Neutral.

AstroNova exhibits solid financial fundamentals, particularly with its debt management and revenue growth in key segments. However, technical indicators and earnings call outcomes highlight challenges including integration issues and declining profitability margins. The valuation appears moderate, though lack of dividend yield may deter certain investors.

To see Spark’s full report on ALOT stock, click here.

Executive/Board Changes

AstroNova Appoints Darius G. Nevin to Board

Positive

Mar 28, 2025

On March 28, 2025, AstroNova expanded its Board of Directors to six members by appointing Darius G. Nevin, a seasoned financial executive, as a director. Mr. Nevin will serve on the Audit Committee and Human Capital and Compensation Committee, bringing extensive financial acumen and governance experience to the board. His appointment is expected to enhance AstroNova’s strategic vision and drive value for shareholders. Mr. Nevin has a notable background, having served as CFO at Protection One, Inc., and currently serves on the boards of Alarm.com and Psychemedics Corporation.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.