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AmeraMex International (AMMX)
OTHER OTC:AMMX
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AmeraMex International
(OTC:AMMX)
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Rating:47Neutral
Price Target:
$0.14
▲(10.00% Upside)
The overall stock score for AmeraMex International is primarily impacted by its weak financial performance, characterized by declining revenues, negative profitability, and high leverage. While technical analysis shows some positive trends, the poor valuation due to a negative P/E ratio and lack of dividend yield further weighs down the score.
Positive Factors
Revenue Growth
Despite financial challenges, the company has demonstrated a significant revenue growth rate, indicating potential market demand and business expansion opportunities.
Diverse Revenue Streams
AmeraMex's diverse revenue streams from sales, rentals, and services provide stability and reduce dependency on any single income source, supporting long-term resilience.
Strategic Partnerships
Strategic partnerships enable competitive pricing and a diverse product range, enhancing market competitiveness and supporting sustained revenue generation.
Negative Factors
High Leverage
The high leverage ratio indicates significant reliance on debt, posing risks to financial stability and limiting flexibility in adverse conditions.
Negative Profitability
Ongoing losses and declining profitability highlight challenges in cost management and revenue generation, impacting long-term financial health.
Cash Flow Challenges
Negative free cash flow growth indicates potential liquidity issues, affecting the company's ability to invest in growth and manage operations effectively.
AmeraMex International (AMMX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.96M
Dividend YieldN/A
Average Volume (3M)19.45K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth20.95%
EPS Growth61.92%
CountryUS
Employees19
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.01
Shares Outstanding15,112,988
10 Day Avg. Volume33,167
30 Day Avg. Volume19,453
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)1.35
Price to Sales (P/S)0.20
P/FCF Ratio-1.10
Enterprise Value/Market Cap5.95
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit106.57
Enterprise Value/Ebitda22.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
AmeraMex International Business Overview & Revenue Model
Company DescriptionAmeraMex International, Inc. sells, leases, and rents new and refurbished heavy equipment primarily in the United States. Its products are used in light and infrastructure construction, shipping logistics, logging, mining, transportation, commercial farming, and forestry industries. The company also sells parts; and provides repair and maintenance services. It serves customers in the United States, Canada, Latin America, Asia, and Africa. The company was founded in 1989 and is based in Chico, California.
How the Company Makes MoneyAmeraMex International generates revenue through multiple streams, primarily from the sale and rental of heavy equipment. The company earns income by selling new and used machinery, which constitutes a significant portion of its revenue. Additionally, the rental services provide a steady income stream, as customers often prefer renting equipment for short-term projects. Furthermore, AmeraMex enhances its earnings through maintenance and repair services, generating recurring revenue from existing customers. Strategic partnerships with manufacturers and suppliers also enable the company to offer competitive pricing and a diverse product range, contributing positively to its revenue generation.
AmeraMex International Earnings Call Summary
Earnings Call Date:Aug 16, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Mar 27, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance for the second quarter, with significant increases in revenue, profit margins, and net income, indicating a positive turnaround from the previous year's challenges. However, there are concerns about increased liabilities and potential uncertainties due to upcoming political events.Q2-2024 Updates
Positive Updates
Significant Revenue Increase
Revenue increased by 65% for the second quarter to $3.8 million compared to $2.3 million for the same period in 2023. Additionally, the 6-month period saw a 29% revenue increase to $7.1 million compared to $5.1 million in 2023.
Improved Profit Margins
Gross profit increased by 265% to $2.6 million for the quarter, with a gross profit margin of 68% compared to 31% in the previous year. Profit from operations rose significantly to $2 million, compared to a loss of $102,577 in the previous year.
Positive Net Income
Net income for the quarter was $1 million or $0.07 per share, compared to a loss of $117,000 or a loss per share of $0.01 in the same quarter of 2023.
Increase in Rental Equipment
There was a $3.6 million increase in rental equipment, contributing to a $4 million increase in total assets.
Negative Updates
Increased Liabilities
Total liabilities increased by $3.5 million, attributed in part to an increase in the company's notes payable.
Concerns Over Future Economic Conditions
The CEO expressed concerns about the potential impact of the upcoming election on the business, indicating uncertainty in the market.
Company Guidance
During AmeraMex International's Q2 2024 earnings call, the company reported a significant financial recovery, with a 65% increase in quarterly revenue to $3.8 million, compared to $2.3 million in the same quarter last year. Gross profit surged by 265% to $2.6 million, reflecting a substantial improvement in profit margins, rising from 31% in Q2 2023 to 68% this quarter. The company's profit from operations also saw a dramatic turnaround, reaching $2 million compared to a loss of $102,577 in the prior year. Net income for Q2 was $1 million, or $0.07 per share, a notable improvement from a loss of $117,000 or $0.01 per share in the previous year. For the first half of 2024, revenue grew by 29% to $7.1 million, with a 60% increase in gross profit to $2.4 million and operational profit rising to $1.5 million from $240,200 the previous year. Total assets increased by approximately $4 million, largely due to a $3.6 million rise in rental equipment, while total liabilities grew by $3.5 million primarily due to increased notes payable. The company expressed optimism about maintaining and potentially improving these margins in the upcoming quarters.AmeraMex International Financial Statement Overview
Summary
AmeraMex International is facing financial difficulties with declining revenues, negative profitability, and high leverage. The company's financial health is under pressure, with significant risks associated with its debt levels and cash flow management. Improvement in revenue generation and cost control is essential for future stability.Income Statement
The income statement shows a declining trend in revenue and profitability. Revenue decreased by 4.36% in the latest year, and the company has been experiencing negative net profit margins, indicating ongoing losses. The gross profit margin has also declined significantly from previous years, suggesting challenges in maintaining cost efficiency.Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of 5.25, which poses a risk in terms of financial stability. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is low, indicating a heavy reliance on debt financing.Cash Flow
Cash flow analysis shows negative free cash flow growth and a negative free cash flow to net income ratio, highlighting cash management issues. Although operating cash flow is positive, it is insufficient to cover net income losses, indicating potential liquidity challenges.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.86M | 14.97M | 13.38M | 19.22M | 24.72M | 12.28M |
| Gross Profit | 109.75K | 1.23M | 2.07M | 4.49M | 5.03M | 1.77M |
| EBITDA | 531.53K | 887.35K | 269.25K | 2.70M | 4.24M | 1.30M |
| Net Income | -1.41M | -1.16M | -1.37M | 871.06K | 1.63M | -582.69K |
Balance Sheet | ||||||
| Total Assets | 17.60M | 17.51M | 17.83M | 13.08M | 10.79M | 12.52M |
| Cash, Cash Equivalents and Short-Term Investments | 124.06K | 84.93K | 588.13K | 1.03M | 995.61K | 407.88K |
| Total Debt | 10.24M | 11.76M | 9.74M | 6.79M | 5.65M | 9.64M |
| Total Liabilities | 14.72M | 15.26M | 14.43M | 8.86M | 7.51M | 10.93M |
| Stockholders Equity | 2.88M | 2.24M | 3.40M | 4.22M | 3.28M | 1.59M |
Cash Flow | ||||||
| Free Cash Flow | 1.55M | -2.75M | -3.45M | -51.06K | 4.55M | -1.01M |
| Operating Cash Flow | 6.94M | 2.61M | -2.36M | 1.91M | 5.78M | -256.07K |
| Investing Cash Flow | -4.65M | -5.00M | -1.09M | -1.96M | -1.24M | -753.83K |
| Financing Cash Flow | -2.42M | 1.89M | 3.01M | 87.66K | -3.96M | 1.30M |
AmeraMex International Technical Analysis
Positive
0.13
Price Trends
0.13
Negative
0.12
Positive
0.11
Positive
Market Momentum
>-0.01
Negative
54.64
Neutral
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMMX, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMMX.
AmeraMex International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $201.10M | 12.79 | 7.68% | ― | ― | ― | |
66 Neutral | $12.05M | 6.57 | 15.99% | ― | -4.37% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $25.50M | -0.52 | -84.37% | ― | -16.89% | 35.45% | |
47 Neutral | $1.96M | -2.62 | ― | ― | 20.95% | 61.92% | |
45 Neutral | $8.63M | -0.13 | -30.93% | ― | -26.84% | -0.16% | |
38 Underperform | $4.09M | -0.16 | ― | ― | ― | ― |
* Industrials Sector Average
AMMX
AmeraMex International
0.13
-0.08
-38.39%
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XOS
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2.26
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.