Airea plc (AIEA) AI Stock Analysis

• Market Cap: £10.34M
• Dividend Yield: 2.4%
• Average Volume (3M): 3.85K
• Price to Earnings (P/E): 147.1
• Beta (1Y): 0.37
• Revenue Growth: 0.63%
• EPS Growth: -136.68%
• Country: UK
• Employees: 120
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Apparel - Manufacturers
• EPS (TTM): >-0.01
• Shares Outstanding: 41,354,350
• 10 Day Avg. Volume: 6,098
• 30 Day Avg. Volume: 3,853
• PEG Ratio: 0.08
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.27
• 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

• Rating: 55 Neutral
• Price Target: 26.00p ▲(4.00%Upside)

Airea plc's overall stock score reflects a mix of stable revenue growth and strong gross margins but is weighed down by declining profitability and negative cash flows. The technical indicators show bearish trends, although corporate events provide a positive outlook with expansion plans and increased director confidence.

Airea plc Business Overview & Revenue Model

Company Description

Airea plc (AIEA) is a UK-based company specializing in the design, manufacture, and distribution of floor coverings. The company operates primarily in the flooring sector and offers a range of carpet tiles and other flooring solutions for commercial and residential applications. Airea is known for its innovative designs and sustainable manufacturing practices, catering to a diverse clientele that includes offices, educational institutions, and hospitality industries.

How the Company Makes Money

Airea plc generates revenue primarily through the sale of its flooring products, including carpet tiles and other floor coverings. The company sells its products directly to customers as well as through a network of distributors and retailers, ensuring a broad market reach. Airea leverages strategic partnerships with interior designers and architects to integrate its products into various commercial and residential projects. Additionally, the company invests in research and development to enhance its product offerings, focusing on sustainability and design innovation, which helps maintain competitive pricing and attract a loyal customer base. By catering to both new constructions and renovation projects, Airea secures multiple revenue streams from different market segments.

Airea plc Financial Statement Overview

Summary

Airea plc shows stable revenue growth and a strong gross margin. However, there are significant challenges with declining profitability and negative cash flows. The balance sheet is robust with low leverage, but negative ROE raises concerns about generating returns. The company needs to improve operational efficiency and cash flow management.

Income Statement

Airea plc shows a slight revenue growth of 0.62% from the previous year, indicating stability in top-line performance. However, the net income has turned negative in the latest year, leading to a negative net profit margin of -1.33%. The gross profit margin remains healthy at 60.02%, but there is a significant decline in EBIT margin to 3.26% and EBITDA margin to 5.89%, indicating pressure on operating profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.09, reflecting conservative leverage. The equity ratio stands at 59.03%, suggesting a stable capital structure. However, the return on equity (ROE) has turned negative at -1.81%, highlighting concerns about profitability and return generation for shareholders.

Cash Flow

Airea plc has experienced a significant decline in free cash flow, turning negative in the latest year. The operating cash flow to net income ratio is negative, indicating challenges in converting profits into cash flows. The company needs to improve cash flow generation to support its operations and investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.23M	21.10M	18.48M	15.87M	14.55M
Gross Profit	12.74M	12.63M	1.30M	822.00K	-96.00K
EBITDA	1.25M	2.28M	2.18M	1.94M	1.04M
Net Income	-282.00K	769.00K	1.29M	1.04M	345.00K
Balance Sheet
Total Assets	26.32M	27.48M	25.15M	24.78M	23.90M
Cash, Cash Equivalents and Short-Term Investments	2.06M	5.76M	5.76M	5.69M	6.55M
Total Debt	1.33M	2.33M	2.92M	3.83M	4.14M
Total Liabilities	10.78M	12.53M	8.70M	8.37M	9.90M
Stockholders Equity	15.54M	14.95M	16.44M	16.41M	14.00M
Cash Flow
Free Cash Flow	-2.25M	1.18M	1.24M	-410.00K	1.53M
Operating Cash Flow	-28.00K	2.38M	1.59M	857.00K	1.75M
Investing Cash Flow	-2.14M	-1.19M	-280.00K	-1.27M	-217.00K
Financing Cash Flow	-1.52M	-1.19M	-1.24M	-457.00K	2.07M

Airea plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AIEA, the sentiment is Negative. The current price of 25 is below the 20-day moving average (MA) of 26.65, below the 50-day MA of 27.25, and above the 200-day MA of 24.63, indicating a neutral trend. The MACD of -0.67 indicates Positive momentum. The RSI at 4.20 is Positive, neither overbought nor oversold. The STOCH value of 32.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AIEA.

Airea plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TND	67 Neutral	£12.03M	―	-0.25%	―	10.69%	95.13%
Sector *	64 Neutral	£1.71B	10.36	6.12%	4.48%	0.55%	-32.84%
SDG	59 Neutral	£37.87M	6.71	-19.63%	3.81%	-7.59%	-284.80%
SYM	58 Neutral	£28.36M	―	-290.14%	―	3.78%	47.46%
AIEA	55 Neutral	£10.34M	147.06	-1.85%	2.40%	0.63%	-136.68%
TAST	41 Neutral	£988.65K	0.05		―	-21.95%	―

Airea plc Corporate Events

Airea plc Director Increases Stake in Company

Airea plc announced that Tanya Ashton, a Non-Executive Director, purchased 17,349 ordinary shares at a price of 28.7 pence per share. This transaction increases her total interest in the company to 0.04% of the total issued share capital, reflecting confidence in the company’s market position and potential growth.

AIREA plc Reports Progress Amid Challenges and Expands Internationally

AIREA plc reported a year of progress in 2024 despite economic challenges, with a 0.6% increase in revenue to £21.2m and a 9.1% rise in dividends. The company is addressing its pension scheme deficit and has divested an investment property. A new showroom in Dubai aims to boost sales in the GCC, MEA, and India, while investments in manufacturing facilities are nearing completion. Early 2025 shows promising growth, with a 2.6% revenue increase and strong demand for new product lines.