New Horizon Aircraft (HOVR) AI Stock Analysis

• Market Cap: $84.97M
• Dividend Yield: N/A
• Average Volume (3M): 587.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 20
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 44,252,750
• 10 Day Avg. Volume: 590,062
• 30 Day Avg. Volume: 587,701
• PEG Ratio: -0.04
• Price to Book (P/B): 10.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.90
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.60K
• Enterprise Value/Ebitda: -4.96
• 1Y Price Target: $18.00
• Price Target Upside: 837.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $2.00 ▲(4.17% Upside)
• Action: Reiterated Date: 01/17/26
• Date: Action: Reiterated 01/17/26

The score is primarily held back by weak financial performance (pre-revenue, widening losses, and ongoing cash burn with potential funding needs). Technical momentum is a key positive, while valuation remains challenged due to negative earnings and no dividend. Corporate events are mildly supportive but include dilution risk.

Positive Factors

Low leverage and balance-sheet flexibility

Minimal debt and a meaningful equity base give New Horizon runway to fund R&D and certification milestones without interest burdens. This reduces near-term solvency risk and preserves optionality for strategic partnerships or staged financing during long certification cycles.

Focused eVTOL development and addressable markets

A clear strategic focus on hybrid-electric eVTOLs and dual civil/defense use cases targets structurally growing markets (advanced air mobility and defense applications). That market alignment supports long-term commercial and contract opportunities if certification and tech milestones are met.

Governance and employee alignment initiatives

Introducing aerospace expertise to the board strengthens governance credibility for certification and supplier engagement. An employee stock purchase plan can align staff incentives with long-term development goals, aiding retention in a specialized, small team environment.

Negative Factors

Persistent cash burn and weak cash generation

Sustained negative operating and free cash flow reflects heavy R&D and development spending with no revenue to offset costs. For capital-intensive aerospace projects this raises runway and financing dependency risks, potentially forcing dilutive raises before commercialization.

Pre-revenue with widening net losses

Being pre-revenue with materially larger TTM losses underscores limited near-term earnings visibility. Without recurring revenue or committed contracts, profitability depends on successful certification and commercialization, a multi-year, uncertain process for eVTOL developers.

Funding risk and dilution potential

Combined cash burn and historical operating losses increase the likelihood of future capital raises. Expanded share offering capacity improves flexibility but also raises dilution risk, which can dilute existing shareholders and complicate long-term equity incentives.

New Horizon Aircraft Business Overview & Revenue Model

Company Description

New Horizon Aircraft Ltd., an aerospace engineering company, focuses on designing and developing the hybrid electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility market primarily in the United States. It is developing Cavorite X7, a hybrid electric 7-seat aircraft that can take off and land vertically. The company was founded in 2013 and is headquartered in Lindsay, Canada.

How the Company Makes Money

New Horizon Aircraft Financial Statement Overview

Summary

Financial profile is weak overall due to being pre-revenue with sharply worse TTM net losses and persistent operating/free-cash-flow burn. The main offset is a currently low-debt balance sheet with positive equity, but ongoing losses and cash burn elevate funding risk.

Income Statement

The company is still pre-revenue (revenue is $0 across annual periods and TTM (Trailing-Twelve-Months)), so reported losses largely reflect operating spend rather than an underperforming core business. Profitability is weak and deteriorated sharply in TTM (Trailing-Twelve-Months) with net loss of about -$31.1M versus a one-time profitable annual period in 2025 (net income +$5.2M) and losses in prior years. The overall trajectory points to rising operating costs and limited visibility to near-term earnings normalization without commercialization.

Balance Sheet

Leverage is very low, with minimal total debt in TTM (Trailing-Twelve-Months) (~$19K) against a meaningful equity base (~$14.5M), which reduces financial risk and improves flexibility. However, equity has been volatile historically (negative equity in several prior annual periods), and returns on equity are very weak in TTM (Trailing-Twelve-Months) due to large losses. Asset base has increased materially versus earlier years, but ongoing losses could pressure the balance sheet if funding is required to sustain operations.

Cash Flow

Cash generation is weak with continued cash burn: operating cash flow is negative in all shown periods and worsened in TTM (Trailing-Twelve-Months) to about -$10.1M, with free cash flow around -$10.9M. Free cash flow remains negative despite showing positive growth in TTM (Trailing-Twelve-Months), and cash outflows are not being supported by current earnings quality given the lack of recurring revenue. The main strength is that debt is not driving the cash profile; the key risk is the likely need for additional capital if burn persists.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-57.08K	0.00	0.00	0.00	0.00
EBITDA	-18.38M	-13.45M	-4.57M	-1.44M	-1.76M
Net Income	-22.46M	5.20M	-8.16M	-1.25M	-1.65M
Balance Sheet
Total Assets	25.64M	8.41M	4.94M	1.41M	1.16M
Cash, Cash Equivalents and Short-Term Investments	24.30M	7.55M	1.82M	227.97K	4.32K
Total Debt	19.00K	30.00K	74.00K	1.60M	2.25M
Total Liabilities	11.17M	5.82M	22.88M	1.83M	2.44M
Stockholders Equity	14.47M	2.59M	-17.93M	-413.49K	-1.28M
Cash Flow
Free Cash Flow	-10.91M	-9.45M	-3.52M	-1.09M	-1.75M
Operating Cash Flow	-10.10M	-9.31M	-3.31M	-1.01M	-1.62M
Investing Cash Flow	-808.00K	-142.00K	-209.00K	-77.21K	-130.57K
Financing Cash Flow	34.33M	15.19M	5.11M	1.31M	1.60M

New Horizon Aircraft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACHR	52 Neutral	$4.66B	-7.59	-41.84%	―	―	11.14%
HOVR	50 Neutral	$84.97M	-2.61	―	―	―	―
EVEX	49 Neutral	$1.02B	-6.63	-115.63%	―	―	-33.69%
SKYH	47 Neutral	$685.82M	-44.52	-5.40%	―	95.23%	89.44%
EVTL	45 Neutral	$395.10M	―	―	―	―	―
EH	43 Neutral	$826.16M	-14.92	-24.59%	―	23.58%	20.74%