Aeorema Communications (AEO) AI Stock Analysis

• Market Cap: £4.60M
• Dividend Yield: 631.58%
• Average Volume (3M): 1.42K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.13
• Revenue Growth: 6.47%
• EPS Growth: -10.00%
• Country: UK
• Employees: 74
• Sector: Communication Services
• Sector Strength: 83
• Industry: Entertainment
• EPS (TTM): 0.03
• Shares Outstanding: 9,693,000
• 10 Day Avg. Volume: 896
• 30 Day Avg. Volume: 1,417
• PEG Ratio: -0.23
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.87
• 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: £53.00
• Price Target Upside: 11.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: 53.00p ▲(11.58%Upside)

Aeorema Communications scores a solid 73, driven by strong corporate events like share buyback programs and contract renewals. The stock's valuation is attractive, with a decent dividend yield. While financial performance highlights a strong balance sheet, challenges in growth and profitability exist. Technical indicators show potential for positive momentum.

Aeorema Communications Business Overview & Revenue Model

Company Description

Aeorema Communications (AEO) is a UK-based company specializing in delivering live experiences and communications solutions for businesses. The company operates predominantly in the events sector, where it creates, manages, and delivers a wide array of corporate events ranging from small meetings to large-scale conferences and exhibitions. Aeorema Communications leverages creative storytelling and innovative technologies to enhance client engagement and brand visibility, offering services that include event planning, production, and digital content creation.

How the Company Makes Money

Aeorema Communications generates revenue primarily through its event management and production services. The company earns money by charging clients for the planning, execution, and management of corporate events, which often involve bespoke solutions tailored to the specific needs of each client. Revenue streams include fees for creative services, production costs, and management of logistics. Additionally, Aeorema may partner with technology providers or other service vendors to enhance their offerings, potentially benefiting from shared revenue or commissions. The company's ability to deliver high-quality, memorable experiences helps retain clients and attract new business, contributing to its financial performance.

Aeorema Communications Financial Statement Overview

Summary

Aeorema Communications demonstrates a mixed financial profile. The income statement shows declining profitability and stagnant revenue growth. The balance sheet is strong with low debt, and cash flow remains robust, but there is room for improvement in cash management. Overall, the company is financially stable but faces potential risks in maintaining profitability and growth momentum.

Income Statement

The income statement reveals a company with fluctuating performance. Gross profit margin is decent, but there's a notable decline from prior years, indicating potential cost management issues. Net profit margin has also decreased, showing reduced profitability. Revenue growth is stagnant, reflecting challenges in expanding the customer base or product offerings. The EBIT and EBITDA margins have dropped significantly, suggesting operational inefficiencies or increased expenses.

Balance Sheet

The balance sheet is relatively strong, with a solid equity base and low debt levels, resulting in a favorable debt-to-equity ratio. Return on equity is positive but has decreased, indicating a slight decline in efficiency with which equity is used to generate profits. The equity ratio remains stable, showcasing a healthy balance between assets and equity.

Cash Flow

The cash flow statement is positive with strong free cash flow generation, although there is a subtle decline in growth. Operating cash flow remains robust relative to net income, indicating good cash generation from core operations. However, the decline in free cash flow growth suggests the need for improved cash management strategies.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	19.66M	20.29M	20.23M	12.21M	5.09M	5.48M
Gross Profit	4.25M	3.77M	4.33M	2.95M	1.09M	1.76M
EBITDA	719.90K	742.71K	1.33M	1.01M	-8.29K	-75.99K
Net Income	343.43K	296.71K	757.18K	639.34K	-164.93K	-197.43K
Balance Sheet
Total Assets	2.29M	9.02M	7.65M	6.49M	3.24M	3.37M
Cash, Cash Equivalents and Short-Term Investments	1.03M	3.12M	2.44M	1.71M	1.10M	1.72M
Total Debt	0.00	641.79K	832.86K	1.05M	275.91K	385.76K
Total Liabilities	791.80K	6.22M	4.84M	4.23M	1.72M	1.67M
Stockholders Equity	1.49M	2.81M	2.81M	2.25M	1.51M	1.70M
Cash Flow
Free Cash Flow	-1.92M	1.15M	1.13M	742.46K	-767.50K	-237.34K
Operating Cash Flow	-1.79M	1.21M	1.46M	921.94K	-708.33K	-227.34K
Investing Cash Flow	-272.67K	-160.74K	-502.31K	-253.68K	-161.18K	-110.70K
Financing Cash Flow	-274.09K	-369.47K	-224.59K	-55.56K	250.00K	-151.91K

Aeorema Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AEO, the sentiment is Negative. The current price of 47.5 is below the 20-day moving average (MA) of 47.60, below the 50-day MA of 47.79, and below the 200-day MA of 48.63, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 47.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AEO.

Aeorema Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEO	73 Outperform	£4.60M	14.66	11.05%	631.58%	6.47%	-10.00%
Sector *	64 Neutral	£1.78B	9.94	-12.53%	291.35%	2.59%	-474.71%
ZIN	55 Neutral	£16.95M	―	-12.15%	―	-19.68%	―
OMIP	55 Neutral	£9.68M	53.57	4.13%	1.43%	-8.97%	-216.67%

Aeorema Communications Corporate Events

Aeorema Communications Launches Share Buyback Program

Aeorema Communications plc has announced the commencement of a share buyback program to repurchase up to 5% of its issued share capital, reflecting the board’s confidence in the company’s long-term outlook. The buyback will be funded from existing surplus cash resources, with Shard Capital Partners LLP appointed to manage the program independently. This move is aimed at reducing the company’s share capital and may have implications for shareholder interests and market positioning, although there is no guarantee that the program will be fully implemented.

Aeorema’s Cheerful Twentyfirst Secures Major Cannes Lions Contract Renewal

Aeorema Communications plc announced that its brand experience agency, Cheerful Twentyfirst, has been reappointed by Stagwell to produce SPORT BEACH at the Cannes Lions International Festival of Creativity in 2025. This renewal marks the third consecutive year of collaboration, highlighting the success of previous events and the strategic partnership between the companies. The 2025 event will feature a reimagined design, expanded capacity, and new interactive elements, aiming to redefine sports, creativity, and culture at the festival. This continued partnership underscores Aeorema’s strong industry positioning and its commitment to delivering innovative and impactful brand experiences.