CPI Aerostructures (CVU) AI Stock Analysis

• Market Cap: $43.13M
• Dividend Yield: N/A
• Average Volume (3M): 34.65K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.72
• Revenue Growth: -6.23%
• EPS Growth: -80.67%
• Country: US
• Employees: 212
• Sector: Industrials
• Sector Strength: 74
• Industry: Aerospace & Defense
• EPS (TTM): 0.26
• Shares Outstanding: 13,031,223
• 10 Day Avg. Volume: 25,679
• 30 Day Avg. Volume: 34,649
• PEG Ratio: 0.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.57
• Price to Cash Flow (P/CF): 16.40
• P/FCF Ratio: 11.10
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.96
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

CPI Aerostructures has shown recent improvements in profitability and cash flow, which are positive signs for the company's future. However, historical financial volatility and current technical indicators suggest caution. The undervaluation based on the P/E ratio provides a potential entry point for value investors, but the overall market sentiment remains cautious.

CPI Aerostructures Business Overview & Revenue Model

Company Description

CPI Aerostructures, Inc. engages in the contract production of structural aircraft parts for fixed wing aircraft and helicopters in the commercial and defense markets. The company also offers aero systems, such as reconnaissance pod structures and fuel panel systems; and supplies parts for maintenance, repair, and overhaul (MRO), as well as kitting contracts. In addition, it operates as a subcontractor for defense contractors and commercial contractors, as well as a contractor for the United States Department of Defense. Further, the company offers engineering, program management, supply chain management, kitting, and MRO services. Additionally, it offers machine gunner window assemblies, hover infrared suppression system module assemblies, wing sets and spares kits, lock assemblies, canopy activation drive shaft assemblies, rudder island and drag chute canister assemblies, composite electronics racks, structural wing components, fixed leading edges, and engine inlet assemblies. The company was formerly known as Consortium of Precision Industries, Inc. and changed its name to CPI Aerostructures, Inc. in July 1992. CPI Aerostructures, Inc. was incorporated in 1980 and is headquartered in Edgewood, New York.

How the Company Makes Money

CPI Aerostructures generates revenue through the design, manufacture, and assembly of aerostructures, which are sold to original equipment manufacturers (OEMs) in the aerospace and defense industries. The company's key revenue streams include long-term contracts with major defense contractors and commercial aerospace companies. CPI Aerostructures often collaborates with larger defense and aerospace firms, providing specialized components and systems crucial to the assembly of complete aircraft. The company benefits from government and military spending on defense and aerospace initiatives, with significant contracts contributing largely to its earnings. Additionally, their engineering and technical support services provide supplementary income, enhancing the lifecycle and performance of the aircraft systems they support.

CPI Aerostructures Financial Statement Overview

Summary

CPI Aerostructures shows good profitability with solid gross and net profit margins, but faces challenges with negative revenue growth. The balance sheet indicates moderate stability with a manageable debt-to-equity ratio, although the low equity ratio suggests vulnerability. Cash flow generation has improved, but negative free cash flow growth poses risks.

Income Statement

CPI Aerostructures demonstrates improving profitability with solid gross and net profit margins. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 20.5%, and the net profit margin is about 20.6%, reflecting effective cost management. However, the revenue growth rate is negative over the TTM period, indicating a need to stimulate growth.

Balance Sheet

The company's balance sheet shows moderate stability with a debt-to-equity ratio of 0.87, indicating a manageable level of debt. The return on equity (ROE) is notably high at approximately 68.5%, driven by recent profitability. Yet, the equity ratio is relatively low at 36.2%, suggesting potential vulnerability to economic downturns.

Cash Flow

CPI Aerostructures has shown improvements in cash flow generation, with a positive operating cash flow to net income ratio of 0.135 in the TTM period, indicating strong cash conversion. However, the free cash flow growth rate is negative as of the latest period, requiring attention to cash management strategies.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
86.47M	83.34M	103.37M	87.58M	87.52M
	Gross Profit
17.07M	16.30M	15.01M	12.09M	9.13M
	EBIT
6.31M	4.89M	6.95M	48.02K	-2.43M
	EBITDA
6.78M	4.89M	4.21M	-1.25M	-3.52M
	Net Income Common Stockholders
17.20M	9.18M	6.82M	-1.32M	-4.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.09M	3.85M	6.31M	6.03M	4.05M
	Total Assets
74.36M	59.45M	55.01M	49.69M	44.34M
	Total Debt
25.21M	29.69M	34.18M	37.80M	35.29M
	Net Debt
20.12M	25.84M	27.87M	31.77M	31.24M
	Total Liabilities
52.28M	55.25M	60.34M	58.04M	52.08M
	Stockholders Equity
22.08M	4.20M	-5.34M	-8.35M	-7.74M
Cash Flow		Free Cash Flow
3.79M	903.54K	2.77M	-1.75M	-813.99K
	Operating Cash Flow
3.93M	944.33K	2.80M	-1.60M	-377.98K
	Investing Cash Flow
-140.45K	-40.79K	-29.19K	-146.79K	-436.01K
	Financing Cash Flow
-2.54M	-3.37M	-2.49M	2.35M	118.64K

CPI Aerostructures Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVU, the sentiment is Negative. The current price of 3.31 is below the 20-day moving average (MA) of 3.38, below the 50-day MA of 3.58, and below the 200-day MA of 3.50, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVU.

CPI Aerostructures Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CODA	72 Outperform	$75.35M	19.29	7.61%	―	15.63%	64.98%
OPXS	68 Neutral	$43.38M	10.34	23.81%	―	23.22%	39.83%
Sector *	63 Neutral	$4.27B	11.36	5.38%	214.64%	4.14%	-9.01%
VTSI	58 Neutral	$45.38M	31.93	3.09%	―	-30.73%	-83.53%
CVU	50 Neutral	$43.13M	12.76	13.74%	―	-6.23%	-80.67%
AIRI	47 Neutral	$12.54M	―	-9.06%	―	6.97%	37.99%
SIF	45 Neutral	$15.80M	―	-17.92%	―	13.33%	55.32%