CPI Aerostructures (CVU) AI Stock Analysis

• Market Cap: $41.96M
• Dividend Yield: N/A
• Average Volume (3M): 41.86K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.75
• Revenue Growth: -6.23%
• EPS Growth: -80.67%
• Country: US
• Employees: 203
• Sector: Industrials
• Sector Strength: 63
• Industry: Aerospace & Defense
• EPS (TTM): 0.26
• Shares Outstanding: 13,031,223
• 10 Day Avg. Volume: 37,271
• 30 Day Avg. Volume: 41,856
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• 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' stock has a moderate score, driven by mixed financial performance and bearish technical indicators. The company's recent profitability and cash flow improvements are positive, though historical volatility and high leverage remain concerns. The stock's low P/E ratio suggests potential undervaluation, yet technical indicators point to ongoing bearish momentum.

CPI Aerostructures Business Overview & Revenue Model

Company Description

CPI Aerostructures, Inc. (CVU) is an established aerospace and defense contractor specializing in the manufacture of complex aerostructures for fixed wing aircraft, helicopters, and airborne surveillance systems. The company operates primarily within the aerospace and defense sectors, offering a range of services including the assembly of aircraft components and provision of engineering support to both military and commercial markets. CPI Aerostructures is known for its expertise in delivering high-quality, precision-engineered aerostructures, contributing to the manufacture and maintenance of high-performance aircraft.

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
82.81M	86.47M	83.34M	103.37M	87.58M	87.52M
	Gross Profit
16.98M	17.07M	16.30M	15.01M	12.09M	9.13M
	EBIT
6.20M	6.31M	4.89M	6.95M	48.02K	-2.43M
	EBITDA
8.03M	6.78M	4.89M	4.21M	-1.25M	-3.52M
	Net Income Common Stockholders
17.09M	17.20M	9.18M	6.82M	-1.32M	-4.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.13M	5.09M	3.85M	6.31M	6.03M	4.05M
	Total Assets
143.71M	74.36M	59.45M	55.01M	49.69M	44.34M
	Total Debt
30.35M	25.21M	29.69M	34.18M	37.80M	35.29M
	Net Debt
26.22M	20.12M	25.84M	27.87M	31.77M	31.24M
	Total Liabilities
50.29M	52.28M	55.25M	60.34M	58.04M	52.08M
	Stockholders Equity
93.42M	22.08M	4.20M	-5.34M	-8.35M	-7.74M
Cash Flow		Free Cash Flow
1.93M	3.79M	903.54K	2.77M	-1.75M	-813.99K
	Operating Cash Flow
2.31M	3.93M	944.33K	2.80M	-1.60M	-377.98K
	Investing Cash Flow
-377.78K	-140.45K	-40.79K	-29.19K	-146.79K	-436.01K
	Financing Cash Flow
-2.83M	-2.54M	-3.37M	-2.49M	2.35M	118.64K

CPI Aerostructures Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.22
• 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 3.22 is below the 20-day moving average (MA) of 3.47, below the 50-day MA of 4.03, and below the 200-day MA of 3.42, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 43.38 is Neutral, neither overbought nor oversold. The STOCH value of 48.26 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
HXL	65 Neutral	$3.87B	30.25	8.14%	1.29%	6.31%	28.25%
DCO	64 Neutral	$806.49M	25.86	4.78%	―	3.90%	81.41%
Sector *	62 Neutral	$7.25B	12.39	3.08%	3.39%	3.63%	-14.32%
AIR	57 Neutral	$1.81B	246.75	-1.08%	―	21.07%	-120.95%
TGI	54 Neutral	$1.94B	277.54	46.74%	―	-8.59%	―
CVU	52 Neutral	$41.96M	12.41	13.74%	―	-6.23%	-80.67%
SPR	40 Underperform	$3.40B	―	81.63%	―	4.44%	-202.63%