Butler National (BUKS) AI Stock Analysis

• Market Cap: $125.98M
• Dividend Yield: N/A
• Average Volume (3M): 22.37K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.66
• Revenue Growth: 12.07%
• EPS Growth: 86.79%
• Country: US
• Employees: 343
• Sector: Industrials
• Sector Strength: 87
• Industry: Aerospace & Defense
• EPS (TTM): 0.05
• Shares Outstanding: 79,732,920
• 10 Day Avg. Volume: 16,639
• 30 Day Avg. Volume: 22,367
• PEG Ratio: 0.67
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.93
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 3.52
• Enterprise Value/Ebitda: 1.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $1.50 ▼(-5.06%Downside)

Butler National demonstrates strong financial performance with robust profitability and revenue growth. Its undervaluation compared to peers enhances its attractiveness as an investment. However, technical indicators suggest limited short-term momentum, and the lack of recent earnings guidance adds some uncertainty. Overall, the stock shows promise with potential for long-term growth.

Butler National Business Overview & Revenue Model

Company Description

Butler National Corporation, together with its subsidiaries, engages in the designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems worldwide. The company operates in two segments, Aerospace Products and Professional Services. The Aerospace Products segment provides aircraft modifications, which include business-size aircraft from passenger to freighter configuration, radar systems, addition of aerial photography capabilities, intelligence surveillance reconnaissance modifications, and stability enhancing modifications for Learjet, Beechcraft, Cessna, and Dassault Falcon aircraft along with other specialized modifications. This segment also manufactures, sells, and services electronics upgrades for classic weapon control systems that are used on military aircraft and vehicles; and sells, installs, and repairs avionics equipment, including airplane radio equipment and flight control systems, as well as troubleshoots and repairs autopilot systems. The Professional Services segment engages in the management of Boot Hill Casino and Resort, a gaming facility, as well as related dining and entertainment facilities in Dodge City, Kansas. This segment also provides architectural services, such as commercial and industrial building design, and engineering services. The company also acquires, refurbishes, and sells airplanes, primarily Learjets. It serves the aviation industry, including owners and operators of single-engine, commercial, regional, business, and military aircraft. Butler National Corporation was incorporated in 1960 and is headquartered in Olathe, Kansas.

How the Company Makes Money

Butler National Corporation makes money through two primary revenue streams: aerospace products and services, and gaming management services. In the aerospace segment, the company generates revenue by designing and manufacturing avionics and aircraft modifications primarily for business and general aviation markets. This includes specialized equipment for various aircraft systems and services related to aircraft safety and performance improvements. In the gaming sector, Butler National provides management services to casinos, deriving income from management fees and other related services. This diversification into the gaming industry helps stabilize revenue by providing an additional income stream that is not tied directly to the cyclical nature of the aerospace sector.

Butler National Financial Statement Overview

Summary

Butler National's financial statements reveal a strong performance with a solid gross profit margin, healthy net profit margin, and impressive revenue growth. The balance sheet shows financial stability with an improved debt-to-equity ratio, while cash flow analysis highlights a positive shift in free cash flow. However, marginal asset growth could limit future opportunities.

Income Statement

Butler National's income statement shows a solid performance with a strong gross profit margin of 58.6% and a healthy net profit margin of 16.1% in the TTM period. The revenue growth rate is impressive at 8.4% from 2024 to 2025, indicating good business momentum. Both EBIT and EBITDA margins are robust at 20.2% and 26.6%, respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a strong equity position with an equity ratio of 48.5%, suggesting financial stability. The debt-to-equity ratio has improved significantly to 0.15, indicating lower leverage and reduced financial risk. Return on equity stands at a commendable 21.9%, showcasing effective use of equity capital. However, the total assets have increased marginally, which might limit future growth opportunities.

Cash Flow

Cash flow analysis highlights a substantial improvement in free cash flow, which has turned positive at $12.3 million in the TTM period, compared to a negative free cash flow in 2024. The operating cash flow to net income ratio is 1.58, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.90, reflecting efficient cash conversion.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
84.99M	78.38M	75.18M	73.47M	61.48M	65.87M
	Gross Profit
37.44M	33.90M	33.88M	29.85M	17.86M	19.75M
	EBIT
17.12M	13.24M	8.65M	16.13M	5.90M	8.31M
	EBITDA
22.60M	25.27M	14.55M	21.41M	11.76M	14.66M
	Net Income Common Stockholders
13.68M	12.51M	4.52M	10.37M	2.46M	3.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.02M	17.79M	22.00M	12.49M	22.02M	16.79M
	Total Assets
95.27M	113.97M	113.91M	100.81M	101.92M	94.92M
	Total Debt
46.18M	41.51M	46.88M	51.58M	48.65M	48.81M
	Net Debt
29.15M	23.72M	24.88M	39.09M	26.63M	32.02M
	Total Liabilities
56.46M	59.53M	67.13M	59.98M	60.54M	57.11M
	Stockholders Equity
32.25M	54.44M	46.78M	40.83M	35.36M	32.81M
Cash Flow		Free Cash Flow
12.28M	-1.20M	14.43M	1.45M	6.47M	6.88M
	Operating Cash Flow
21.59M	7.54M	20.94M	11.03M	13.46M	10.04M
	Investing Cash Flow
-3.77M	-1.13M	-5.94M	-9.50M	-6.99M	-2.07M
	Financing Cash Flow
-5.00M	-10.62M	-5.49M	-11.06M	-1.24M	-195.00K

Butler National Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.58
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BUKS, the sentiment is Positive. The current price of 1.58 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.52, and above the 200-day MA of 1.53, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 33.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BUKS.

Butler National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISSC	78 Outperform	$222.52M	20.55	22.77%	―	58.67%	70.38%
BUKS	72 Outperform	$125.98M	7.87	24.37%	―	12.07%	86.79%
CODA	72 Outperform	$86.81M	22.22	7.61%	―	15.63%	64.98%
VTSI	67 Neutral	$69.37M	47.90	3.10%	―	-29.61%	-78.85%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
CVU	52 Neutral	$37.96M	20.56	7.62%	―	-7.34%	-88.84%
SPCE	48 Neutral	$124.72M	―	-95.46%	―	-34.33%	52.30%

Butler National Corporate Events

Butler National Appoints New Chief Financial Officer

On May 14, 2025, Butler National Corporation appointed Adam B. Sefchick as Chief Financial Officer, succeeding Mickie Lamphere. Mr. Sefchick, a Certified Public Accountant with over 20 years of experience, brings extensive financial expertise and SEC reporting experience to the role, aligning with Butler National’s strategic objectives for organic growth. His appointment is expected to enhance financial transparency and support long-term growth by optimizing the company’s financial structure and improving operational efficiencies.

Butler National Restructures Sales Teams for Efficiency

On May 1, 2025, Butler National Corporation announced a reorganization of its sales teams and reporting structure, resulting in the elimination of the BNC Vice President & Director of Sales position and the termination of Joe Aric Peters. The reorganization aims to align sales functions within individual business units, enhancing operational goals and accountability, with the Avcon sales team now reporting to Marcus Abendroth, President of Avcon. This strategic move is expected to improve the monitoring of profitability and margins across business segments.

Butler National Appoints Mickie Lamphere as Interim CFO

On March 13, 2025, Butler National Corporation appointed Mickie Lamphere as the Interim Chief Financial Officer. Ms. Lamphere, a Certified Public Accountant with over 30 years of experience, will serve as the principal financial officer and principal accounting officer. The company has entered into an agreement with Morgan Hunter, an executive services firm, to provide Ms. Lamphere’s services at a fee of $7,000 per week, with additional reimbursements for expenses.