Montana Aerospace AG (AERO) AI Stock Analysis

• Market Cap: CHF2.00B
• Dividend Yield: N/A
• Average Volume (3M): 92.55K
• Price to Earnings (P/E): 35.6
• Beta (1Y): 0.70
• 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: 62,517,426
• 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: CHF30.00
• Price Target Upside: 14.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: CHF25.00 ▼(-4.21% Downside)

Montana Aerospace AG's strong financial performance is the most significant factor, demonstrating solid revenue growth and robust cash flow generation. However, technical indicators suggest a bearish trend, and the valuation indicates the stock may be overvalued. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Model

Long-term contracts with major aerospace players provide stable and predictable revenue streams, enhancing financial stability and planning.

Cash Generation

Strong cash flow growth indicates effective cash management and operational efficiency, supporting reinvestment and financial flexibility.

Leverage Position

A conservative leverage position enhances financial stability and reduces risk, allowing for better handling of economic fluctuations.

Negative Factors

Profit Margins

Low net profit margins indicate challenges in converting revenue into profit, which could impact long-term profitability and shareholder returns.

Valuation Concerns

Perceived overvaluation may limit future stock price appreciation, affecting investor sentiment and capital raising opportunities.

Dividend Policy

Lack of dividends may reduce attractiveness to income-focused investors, potentially limiting the investor base and stock demand.

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

Montana Aerospace AG exhibits strong financial performance with solid revenue growth and efficient cost management. The balance sheet reflects a conservative leverage approach, enhancing financial stability. The cash flow statement shows impressive growth in free cash flow, indicating strong cash generation capabilities. While profitability margins could improve, the company's financial health is generally robust and well-positioned for future growth.

Income Statement

Montana Aerospace AG shows a solid revenue growth rate of 2.9% in the TTM period, indicating a positive trajectory. The gross profit margin remains strong at 40.3%, reflecting efficient cost management. However, the net profit margin at 3.7% suggests room for improvement in profitability. The EBIT and EBITDA margins are moderate, with the EBIT margin at 4.0% and EBITDA margin at 10.3%, indicating stable operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.27 in the TTM period indicates a conservative leverage position, which is favorable for financial stability. Return on equity is modest at 6.5%, suggesting moderate profitability from shareholder investments. The equity ratio stands at 51.7%, showcasing a strong equity base relative to total assets, enhancing financial resilience.

Cash Flow

Montana Aerospace AG demonstrates a robust free cash flow growth rate of 90.9% in the TTM period, highlighting significant improvement in cash generation. The operating cash flow to net income ratio is 0.41, indicating healthy cash flow relative to earnings. The free cash flow to net income ratio of 0.44 further supports the company's strong cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.59B	1.49B	1.48B	1.31B	761.97M	527.83M
Gross Profit	643.08M	601.85M	576.65M	491.16M	277.89M	211.40M
EBITDA	164.12M	199.42M	97.81M	97.63M	45.11M	29.18M
Net Income	59.73M	36.09M	-37.95M	-36.11M	-47.27M	-49.29M
Balance Sheet
Total Assets	1.79B	1.83B	1.94B	2.22B	1.79B	1.24B
Cash, Cash Equivalents and Short-Term Investments	127.20M	133.70M	176.10M	427.00M	509.65M	93.89M
Total Debt	245.92M	236.25M	451.04M	589.35M	556.20M	346.76M
Total Liabilities	868.48M	901.34M	1.00B	1.26B	887.53M	1.03B
Stockholders Equity	925.72M	931.62M	936.16M	959.04M	905.55M	210.88M
Cash Flow
Free Cash Flow	71.60M	31.09M	20.63M	45.44M	-143.90M	-106.54M
Operating Cash Flow	160.92M	118.14M	92.26M	131.40M	-26.85M	―
Investing Cash Flow	3.96M	3.43M	-81.84M	-150.27M	-83.01M	-30.18M
Financing Cash Flow	-145.14M	-162.26M	-269.11M	-66.43M	503.25M	―

Montana Aerospace AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 26.1 is above the 20-day moving average (MA) of 24.88, below the 50-day MA of 27.00, and above the 200-day MA of 23.15, indicating a neutral trend. The MACD of -0.68 indicates Negative momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 94.51 is Negative, 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	$4.45B	16.32	23.37%	3.00%	5.79%	13.20%
BUCN	65 Neutral	CHF3.60B	15.95	―	3.05%	-11.64%	-24.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AERO	60 Neutral	CHF2.00B	35.57	―	―	-4.40%	―
SRAIL	57 Neutral	CHF1.93B	61.07	―	1.02%	-6.87%	-74.29%
GF	54 Neutral	CHF4.62B	16.65	―	2.57%	-24.42%	32.48%

Montana Aerospace AG Corporate Events

Montana Aerospace AG Reports Strong Growth and Strategic Focus on Aerospace

Montana Aerospace AG reported strong financial results for the first nine months of 2025, with a 15.5% increase in net sales to EUR 712.3 million and a 28.6% rise in EBITDA to EUR 113.0 million. The company has completed its strategic portfolio optimization by divesting its Energy and E-Mobility segments, thus becoming a pure-play aerospace company. This transition, coupled with strong customer demand and increased market share, particularly in the commercial aerospace sector, has positioned Montana Aerospace for continued growth. The company anticipates net sales to exceed EUR 900 million in 2025 and EUR 1 billion in 2026, with corresponding increases in EBITDA and a positive net income.

The most recent analyst rating on (CH:AERO) stock is a Hold with a CHF33.00 price target. To see the full list of analyst forecasts on Montana Aerospace AG stock, see the CH:AERO Stock Forecast page.

Montana Aerospace AG Completes Transformation to Pure-Play Aerospace Company

Montana Aerospace AG has completed its strategic transformation into a pure-play aerospace company by divesting its Energy segment, ASTA Group. This move, following the sale of its E-Mobility segment, allows the company to focus on its core aerospace business. The divestment, valued at approximately EUR 204 million, includes an earn-out component and offers significant financial benefits, such as freeing up liquidity and enabling a debt-to-equity conversion. This strategic shift is expected to improve the company’s financial position, reducing its net debt to EBITDA ratio below 1x by year-end and transitioning to a net cash position in the near term.

The most recent analyst rating on (CH:AERO) stock is a Hold with a CHF28.00 price target. To see the full list of analyst forecasts on Montana Aerospace AG stock, see the CH:AERO Stock Forecast page.

Montana Aerospace AG Reports Strong H1 2025 Results with Robust Growth in Aerostructures and Energy Segments

Montana Aerospace AG reported a strong financial performance in the first half of 2025, with net sales increasing by 14.1% year-on-year to EUR 820.6 million and EBITDA rising by 34.9% to EUR 101.4 million. The company’s Aerostructures and Energy segments were key growth drivers, achieving significant sales and EBITDA growth despite external challenges. The company also turned its free cash flow from negative to a positive EUR 26.0 million, reduced net debt, and maintained stable trade working capital. Montana Aerospace re-confirmed its guidance for 2025 and 2026, expecting continued growth and profitability, and is negotiating the potential sale of its Energy segment.

The most recent analyst rating on (CH:AERO) stock is a Buy with a CHF24.00 price target. To see the full list of analyst forecasts on Montana Aerospace AG stock, see the CH:AERO Stock Forecast page.