Airea plc (AIEA) AI Stock Analysis

• Market Cap: £10.75M
• Dividend Yield: 2.31%
• Average Volume (3M): 32.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: 5.95%
• EPS Growth: -517.65%
• Country: UK
• Employees: 120
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): >-0.01
• Shares Outstanding: 41,354,350
• 10 Day Avg. Volume: 12,714
• 30 Day Avg. Volume: 32,613
• PEG Ratio: 0.19
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -3.18
• 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: £28.00
• Price Target Upside: 7.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: 28.00p ▲(7.69% Upside)

Airea plc's stock score is primarily influenced by its stable financial performance and strong technical indicators. However, the negative P/E ratio and overbought RSI suggest caution. The company's robust balance sheet and dividend yield provide some support, but improving profitability and cash flow generation are crucial for future growth.

Airea plc Business Overview & Revenue Model

Company Description

AIREA plc, together with its subsidiaries, designs, manufactures, markets, and distributes floor coverings in the United Kingdom, rest of Europe, and internationally. The company's products portfolio includes tufted loop pile, tufted cut pile, fiber bonded, structure bonded, and entrance matting carpet tiles, as well as a range of carpet planks for architects, specifiers and contractors in the education, leisure, commercial, healthcare, and public sectors under the burmatex brand name. It also offers sheets and hard-wearing performance barrier system products range; and engages in the property holding activities. AIREA plc was incorporated in 1953 and is based in Ossett, the United Kingdom.

How the Company Makes Money

Airea plc generates revenue primarily through the sale of its textile and flooring products to wholesalers, retailers, and direct consumers. Key revenue streams include the sale of carpets, rugs, upholstery fabrics, and specialty flooring solutions. The company also engages in custom design services, which provide high-margin opportunities tailored to specific client needs. Significant partnerships with key retailers and interior design firms enhance Airea's market reach, while participation in trade shows and industry events helps to increase brand visibility and attract new clients. Additionally, Airea's focus on sustainability and eco-friendly products appeals to a growing market segment, contributing positively to its earnings.

Airea plc Financial Statement Overview

Summary

Airea plc demonstrates stable revenue growth and a strong gross margin, but faces challenges with declining profitability and negative cash flows. The balance sheet is robust with low leverage, but negative ROE indicates issues with generating returns. The company should focus on improving operational efficiency and cash flow management to enhance financial performance and shareholder value.

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	10.63M	9.48M	8.62M
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	2.04M

Airea plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AIEA, the sentiment is Positive. The current price of 26 is above the 20-day moving average (MA) of 25.10, above the 50-day MA of 24.07, and above the 200-day MA of 25.11, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 89.60 is Negative, neither overbought nor oversold. The STOCH value of 50.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AIEA.

Airea plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIEA	62 Neutral	£10.75M	―	-1.77%	2.31%	5.95%	-517.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TND	55 Neutral	£10.35M	59.71	0.72%	―	16.74%	―
BOW	45 Neutral	£11.25M	―	―	―	-26.54%	-164.52%
SDG	45 Neutral	£34.62M	―	-19.58%	3.12%	-4.23%	-435.86%
SYM	40 Underperform	£15.95M	―	―	―	3.78%	47.46%

Airea plc Corporate Events

Airea plc Reports Strong H1 2025 Performance and Nears Completion of Major Investment

Airea plc reported a 5.8% increase in Group sales for the first half of 2025, with strong performance in the UK and ROI and a recovery in international markets. The company is nearing completion of a major investment in its manufacturing facility, which is expected to enhance operational capabilities and drive future growth. The board remains confident in the company’s long-term prospects and ability to deliver sustainable shareholder value.