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Amrep (AXR)
NYSE:AXR
US Market

Amrep (AXR) AI Stock Analysis

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Amrep

(NYSE:AXR)

Rating:79Outperform
Price Target:
$26.00
▲(29.61%Upside)
Amrep's strong financial performance and attractive valuation are the primary drivers of its overall stock score. The financial stability, characterized by minimal leverage and robust cash flow, provides a strong foundation. Technical indicators suggest moderate bullishness, with the stock trading above key short-term averages. The lack of dividend yield is offset by a compelling P/E ratio. However, the absence of earnings call and corporate event data limits the analysis to these aspects.

Amrep (AXR) vs. SPDR S&P 500 ETF (SPY)

Amrep Business Overview & Revenue Model

Company DescriptionAMREP Corporation, through its subsidiaries, primarily engages in the real estate business. The company operates through two segments, Land Development and Homebuilding. The company sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. As of July 1, 2022, it owned approximately 17,000 acres in Sandoval County, New Mexico. The company owns an approximately 160-acre property in Brighton, Colorado. It also owns mineral interests covering an area of approximately 55,000 surface acres of land in Sandoval County, New Mexico; and owns oil, gas, and minerals and mineral interests covering an area of approximately 147 surface acres of land in Brighton, Colorado. Additionally, the company focuses on selling single-family detached homes and attached homes. AMREP Corporation was founded in 1961 and is headquartered in Havertown, Pennsylvania.
How the Company Makes MoneyAMREP Corporation generates revenue primarily through the sale of developed and undeveloped land, as well as through leasing activities. The company focuses on acquiring land, developing it into residential or commercial properties, and then selling or leasing these properties to generate income. Revenue streams include the direct sale of plots to homebuilders or individuals, as well as lease agreements with commercial tenants. Additionally, AMREP may engage in joint ventures or partnerships to enhance development opportunities and leverage its assets. Key factors contributing to its earnings include property market conditions, land development costs, and demand for residential and commercial real estate in its operating regions.

Amrep Financial Statement Overview

Summary
Amrep exhibits solid financial health with strong profitability, minimal leverage, and robust cash flow generation. The company's growth trajectory is positive, supported by effective cost management and a strong equity base. While the financials are mostly strong, historical fluctuations in revenue and cash flow suggest the need for cautious monitoring of market conditions in the real estate sector.
Income Statement
78
Positive
Amrep shows strong profitability with a gross profit margin of 43.27% and a net profit margin of 22.33% in the TTM. The revenue growth rate is impressive at 13.01% over the last year, indicating robust sales performance. EBIT and EBITDA margins are healthy at 22.81% and 22.97% respectively, reflecting efficient operational management. However, the historical volatility in revenue and net income suggests potential cyclical risks in the real estate market.
Balance Sheet
85
Very Positive
Amrep maintains an exceptionally strong balance sheet with a debt-to-equity ratio of only 0.0002, indicating minimal leverage. The equity ratio is high at 97.70%, showcasing a solid asset base supported by equity. The return on equity (ROE) stands at 10.29%, reflecting efficient use of shareholder funds. The company's low debt levels and substantial equity provide stability and financial resilience.
Cash Flow
81
Very Positive
The company has a strong cash flow position with a free cash flow growth rate of 40.97%, indicating improved cash generation. The operating cash flow to net income ratio is 1.13, suggesting that the company effectively converts its net income into cash. Additionally, the free cash flow to net income ratio of 1.11 further highlights robust cash flow management. However, the variability in cash flow from year to year should be monitored.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
58.05M51.37M48.68M62.48M40.07M18.78M
Gross Profit
25.13M14.47M18.90M26.66M14.47M5.00M
EBIT
13.24M7.60M5.83M21.30M9.05M-2.91M
EBITDA
13.37M7.75M5.89M21.53M9.05M-2.04M
Net Income Common Stockholders
12.97M6.69M21.79M15.86M7.39M-5.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
36.94M29.69M19.99M15.72M24.80M17.50M
Total Assets
128.94M122.83M115.89M94.92M97.37M96.67M
Total Debt
29.00K35.00K44.00K2.03M3.45M3.89M
Net Debt
-36.91M-29.66M-19.95M-13.69M-21.35M-13.61M
Total Liabilities
2.96M4.78M4.89M11.76M8.48M12.03M
Stockholders Equity
125.98M118.05M111.00M83.16M88.89M84.64M
Cash FlowFree Cash Flow
14.43M10.26M6.26M14.19M12.60M756.00K
Operating Cash Flow
14.61M10.71M6.39M15.48M12.61M765.00K
Investing Cash Flow
4.78M-457.00K-131.00K-1.20M-5.00K-9.00K
Financing Cash Flow
-9.00K-9.00K-1.99M-23.36M-5.30M2.51M

Amrep Technical Analysis

Technical Analysis Sentiment
Negative
Last Price20.06
Price Trends
50DMA
21.35
Negative
100DMA
24.17
Negative
200DMA
26.98
Negative
Market Momentum
MACD
-0.58
Positive
RSI
39.50
Neutral
STOCH
24.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXR, the sentiment is Negative. The current price of 20.06 is below the 20-day moving average (MA) of 21.55, below the 50-day MA of 21.35, and below the 200-day MA of 26.98, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 39.50 is Neutral, neither overbought nor oversold. The STOCH value of 24.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AXR.

Amrep Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AXAXR
79
Outperform
$106.49M8.2910.82%30.36%481.87%
70
Outperform
$409.61M42.151.50%24.15%-60.70%
LRLRE
70
Outperform
$25.35M5.9118.25%0.88%-0.82%5.30%
61
Neutral
$2.82B10.840.42%8439.00%5.74%-20.95%
ARARL
55
Neutral
$240.18M-2.20%-6.48%-592.10%
XIXIN
$14.05M0.42
50
Neutral
$86.72M-95.79%-75.67%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AXR
Amrep
20.25
-0.75
-3.57%
ARL
American Realty Investors
14.63
0.53
3.76%
XIN
Xinyuan Real Estate Co
2.47
-0.35
-12.41%
AMBR
Amber International Holding
9.75
8.47
661.72%
LSEA
Landsea Homes
11.27
1.30
13.04%
LRE
Lead Real Estate Co., Ltd. Sponsored ADR
1.93
-3.16
-62.08%
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.