Montana Aerospace AG (AERO) AI Stock Analysis

• Market Cap: CHF2.09B
• Dividend Yield: N/A
• Average Volume (3M): 92.55K
• Price to Earnings (P/E): 41.1
• Beta (1Y): 0.48
• Revenue Growth: -4.40%
• EPS Growth: N/A
• Country: CH
• Employees: 7,147
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.26
• Shares Outstanding: 62,526,630
• 10 Day Avg. Volume: 91,724
• 30 Day Avg. Volume: 92,553
• PEG Ratio: -0.13
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 30.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF31.00
• Price Target Upside: -6.34% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: CHF35.00 ▲(5.74% Upside)

The score is driven by strong technical momentum (price above key moving averages and positive MACD), balanced by only moderate financial performance due to declining revenue and weak cash conversion despite a solid balance sheet. A high P/E multiple further tempers the overall rating.

Positive Factors

High gross margin and improving operating margins

Sustained gross margin above 40% indicates durable cost structure and pricing on complex aerospace parts. Combined with improved EBIT/EBITDA margins, this suggests operational improvements and scope for margin resilience across program lifecycles, supporting long-term profitability.

Conservative leverage and strong equity base

Low leverage and a high equity ratio provide financial flexibility to invest in capital equipment and absorb program timing shocks. A moderate ROE alongside these metrics implies steady returns without overreliance on debt, enhancing balance-sheet durability through aerospace cycles.

Contract-based, multi-year revenue model

Revenue tied to long-term program contracts and supplier status gives multi-year production visibility and recurring serial deliveries. This underpins capacity planning, steady manufacturing volumes, and predictable revenue streams when program awards are retained, benefitting long-term cash flow stability.

Negative Factors

Declining revenue trend

A near-term multi-percent revenue decline reduces scale and can erode fixed-cost absorption in manufacturing. If sustained, this pressures unit economics, limits margin expansion, and can force underutilized capacity or restructuring, weakening long-term earnings resilience.

Low net margin and modest cash conversion

A low net margin and limited conversion of earnings to free cash flow constrain internal funding for capex and program investments. Over time this limits the company’s ability to finance growth, absorb cost inflation, and return capital without relying on external funding.

Customer concentration and aerospace cycle exposure

Dependence on program awards and OEM build rates concentrates demand risk: program cuts or lower build rates can sharply reduce utilization and revenue. This cyclicality makes long-term capacity returns uncertain and raises exposure to OEM negotiating leverage over pricing and volumes.

Montana Aerospace AG Business Overview & Revenue Model

Company Description

Montana Aerospace AG design, develop, and manufacture system components and assemblies worldwide. It operates through Aerostructures, E-mobility, and Energy segments. The Aerostructures segment develop and manufacture mission-critical aircraft parts, which includes structural components for fuselage and wings, as well as critical engine components, and functional components for cabin interiors. Its E-mobility segment engages in the production of components and assemblies, which includes e-battery system, structural components, crash management, fluid and roof systems, and exteriors, as well as chassis, seat structure, and battery housing, cover, caring and cooling solutions. The Energy segment offers system-critical components for the energy infrastructure, which includes copper refinement and insulation systems; and provides bare wire manufacturing, enamel insulation, transposing, and other insulation system solutions. The company was founded in 1814 and is headquartered in Reinach, Switzerland.

How the Company Makes Money

Montana Aerospace AG generates revenue primarily through the production and sale of aerospace components and systems. The company's revenue model is based on long-term contracts and partnerships with major players in the aerospace industry, including aircraft manufacturers and defense contractors. Key revenue streams include direct sales of components, engineering services, and custom manufacturing solutions tailored to client specifications. Additionally, AERO benefits from ongoing collaborations with research institutions and industry partners, which not only enhance its technological capabilities but also create new avenues for revenue through joint ventures and development projects. The growing demand for lightweight, high-performance materials in the aerospace sector further contributes to AERO's earnings, as the company continues to innovate and expand its product offerings.

Montana Aerospace AG Financial Statement Overview

Summary

Moderate fundamentals: strong gross margin (40.32%) and improved EBIT/EBITDA margins, supported by a healthy balance sheet (debt-to-equity 0.27, equity ratio 57.78%). Offsetting this are a low net margin (3.75%), TTM revenue decline (-7.43%), and only modest cash conversion (operating cash flow to net income 0.41; free cash flow to net income 0.44).

Income Statement

Montana Aerospace AG shows a mixed performance in its income statement. The TTM data indicates a gross profit margin of 40.32%, which is strong, but the net profit margin is relatively low at 3.75%. Revenue has declined by 7.43% in the TTM period, indicating potential challenges in maintaining sales growth. However, the company has improved its EBIT and EBITDA margins compared to previous years, suggesting better operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.27, indicating moderate leverage. The return on equity (ROE) is 6.48%, showing profitability on shareholders' investments. The equity ratio stands at 57.78%, highlighting a strong equity base relative to total assets. Overall, the company maintains a healthy balance sheet with manageable debt levels.

Cash Flow

Cash flow analysis reveals a positive trend with a 5.14% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.41, suggesting that the company generates sufficient cash from operations. However, the free cash flow to net income ratio is 0.44, indicating that a significant portion of net income is not converted into free cash flow, which could be a concern for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.48B	1.49B	1.48B	1.31B	761.97M	527.83M
Gross Profit	631.53M	601.85M	576.65M	491.16M	277.89M	211.40M
EBITDA	173.48M	199.42M	97.81M	97.63M	45.11M	29.18M
Net Income	53.20M	36.09M	-37.95M	-36.11M	-47.27M	-49.29M
Balance Sheet
Total Assets	1.49B	1.83B	1.94B	2.22B	1.79B	1.24B
Cash, Cash Equivalents and Short-Term Investments	82.18M	133.70M	176.10M	427.00M	509.65M	93.89M
Total Debt	230.43M	236.25M	451.04M	589.35M	556.20M	346.76M
Total Liabilities	672.59M	901.34M	1.00B	1.26B	887.53M	1.03B
Stockholders Equity	860.80M	931.62M	936.16M	959.04M	905.55M	210.88M
Cash Flow
Free Cash Flow	75.28M	31.09M	20.63M	45.44M	-143.90M	-106.54M
Operating Cash Flow	165.95M	118.14M	92.26M	131.40M	-26.85M	8.03M
Investing Cash Flow	-74.46M	3.43M	-81.84M	-150.27M	-83.01M	-30.18M
Financing Cash Flow	-122.35M	-162.26M	-269.11M	-66.43M	503.25M	-9.23M

Montana Aerospace AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:AERO, the sentiment is Positive. The current price of 33.1 is above the 20-day moving average (MA) of 32.53, above the 50-day MA of 28.08, and above the 200-day MA of 25.38, indicating a bullish trend. The MACD of 1.33 indicates Positive momentum. The RSI at 61.21 is Neutral, neither overbought nor oversold. The STOCH value of 69.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:AERO.

Montana Aerospace AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	75 Outperform	CHF5.62B	20.58	23.37%	2.90%	5.79%	13.20%
AERO	67 Neutral	CHF2.09B	41.09	―	―	-4.40%	―
BUCN	65 Neutral	CHF3.66B	16.22	―	2.99%	-11.64%	-24.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SRAIL	58 Neutral	CHF1.98B	62.81	―	1.00%	-6.87%	-74.29%
GF	54 Neutral	CHF4.22B	15.22	―	2.53%	-24.42%	32.48%
DOKA	52 Neutral	CHF2.44B	24.83	―	―	1.16%	132.26%