Airea plc (AIEA) AI Stock Analysis

• Market Cap: £7.86M
• Dividend Yield: 2.73%
• Average Volume (3M): 13.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• 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: 9,552
• 30 Day Avg. Volume: 13,017
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: 21.00p ▼(-4.55% Downside)

Airea plc's overall stock score reflects a mix of stable revenue growth and strong corporate events, countered by challenges in profitability and technical indicators suggesting bearish momentum. The company's operational improvements and product innovations are promising, but negative earnings and cash flow issues weigh heavily on the valuation.

Positive Factors

Sustainability Focus

Airea's focus on sustainability aligns with growing consumer demand for eco-friendly products, potentially enhancing its market position and attracting environmentally conscious customers.

Revenue Model

Airea's diversified revenue model through direct sales and partnerships provides stability and potential for growth, reducing dependency on any single sales channel.

Low Leverage

Airea's low leverage indicates financial stability and flexibility, allowing the company to invest in growth opportunities without significant debt burden.

Negative Factors

Negative Cash Flow

Negative cash flow challenges Airea's ability to fund operations and investments, potentially impacting its long-term financial health and growth prospects.

Declining Profitability

Declining profitability, with negative net income and profit margins, suggests operational challenges that may hinder Airea's ability to generate sustainable returns.

Negative ROE

Negative ROE indicates inefficiency in generating returns on shareholder equity, potentially affecting investor confidence and long-term value creation.

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 flooring products to various sectors including commercial, residential, and institutional customers. The company's revenue model includes direct sales through its own distribution channels as well as partnerships with wholesalers and retailers. Key revenue streams are derived from the sale of carpets, vinyl flooring, and other related products. Additionally, Airea may benefit from strategic partnerships with construction firms and interior designers, which can lead to bulk orders and long-term contracts, further enhancing its earnings. The company's focus on sustainability and eco-friendly practices also attracts a growing customer base that prioritizes environmentally responsible products.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.77M	21.23M	21.10M	18.48M	15.87M	14.55M
Gross Profit	13.16M	12.74M	12.63M	10.63M	9.48M	8.62M
EBITDA	1.39M	1.25M	2.28M	2.18M	1.94M	392.00K
Net Income	-274.00K	-282.00K	769.00K	1.29M	1.04M	345.00K
Balance Sheet
Total Assets	28.82M	26.32M	27.48M	25.15M	24.78M	23.90M
Cash, Cash Equivalents and Short-Term Investments	1.84M	2.06M	5.76M	5.76M	5.69M	6.55M
Total Debt	2.26M	1.33M	2.33M	2.92M	3.83M	4.14M
Total Liabilities	13.77M	10.78M	12.53M	8.70M	8.37M	9.90M
Stockholders Equity	15.04M	15.54M	14.95M	16.44M	16.41M	14.00M
Cash Flow
Free Cash Flow	-837.00K	-2.25M	1.18M	1.24M	-410.00K	1.53M
Operating Cash Flow	2.63M	-28.00K	2.38M	1.59M	857.00K	1.75M
Investing Cash Flow	-3.46M	-2.14M	-1.19M	-280.00K	-1.27M	-217.00K
Financing Cash Flow	-121.00K	-1.52M	-1.19M	-1.24M	-457.00K	2.04M

Airea plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 22 is above the 20-day moving average (MA) of 20.98, above the 50-day MA of 21.23, and below the 200-day MA of 24.18, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 14.06 is Positive, neither overbought nor oversold. The STOCH value of 41.35 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
LIKE	64 Neutral	£61.07M	45.37	3.37%	1.76%	9.26%	31.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TND	61 Neutral	£9.38M	54.14	0.72%	―	16.74%	―
CRU	58 Neutral	£7.33M	4.08	5.25%	5.80%	-3.74%	―
AIEA	55 Neutral	£7.86M	-26.76	-1.77%	2.73%	5.95%	-517.65%
BOW	40 Underperform	£9.88M	-0.17	―	―	-26.54%	-164.52%
VCP	40 Underperform	£31.43M	-0.13	―	―	-9.72%	10.94%