New Horizon Aircraft (HOVR) AI Stock Analysis

• Market Cap: $85.41M
• Dividend Yield: N/A
• Average Volume (3M): 587.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• 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: 1.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.62K
• Enterprise Value/Ebitda: -5.03
• 1Y Price Target: $18.00
• Price Target Upside: 832.64% 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 ▲(3.63% 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 / balance sheet flexibility

Minimal debt relative to equity provides durable financial flexibility to fund continued R&D and certification phases without immediate interest burdens. This reduces refinancing risk and gives management time to execute development milestones before significant external debt is required.

Distinctive aircraft design & efficiency advantage

A demonstrable operational efficiency edge and proprietary fan‑in‑wing hybrid architecture support long-term competitive differentiation. Structural cost and speed advantages can underpin commercial adoption across medevac, disaster relief, and defense contracts once certification is achieved.

Strategic positioning in growing eVTOL/defense markets

Targeting both commercial advanced air mobility and defense/special-mission niches diversifies potential revenue pathways and leverages structural growth in urban air mobility and defense modernization budgets, increasing the probability of sustained demand post-certification.

Negative Factors

Persistent cash burn

Sustained negative operating and free cash flow reflects continued high R&D and prototype spending without revenue support. Over a multi‑month horizon, ongoing burn creates reliance on external financing and elevates execution risk if capital markets tighten or milestones slip.

Pre-revenue with large operating losses

Zero reported revenue and sizable TTM losses indicate the business is still in development rather than commercialization. Without near-term revenue visibility, returns depend entirely on successful certification, production scale-up, and contract wins, increasing binary outcome risk.

Funding & dilution risk; equity volatility

Historical equity volatility and persistent losses increase the likelihood of future capital raises, which can dilute shareholders and shift governance incentives. Dependence on equity financing is a durable structural risk until the company achieves consistent positive cash generation.

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	$4.81B	-7.59	-41.84%	―	―	11.14%
HOVR	50 Neutral	$85.41M	-2.61	―	―	―	―
EVEX	49 Neutral	$1.06B	-6.63	-115.63%	―	―	-33.69%
SKYH	47 Neutral	$705.61M	-44.52	-5.40%	―	95.23%	89.44%
EVTL	45 Neutral	$406.92M	―	―	―	―	―
EH	43 Neutral	$813.95M	-14.92	-24.59%	―	23.58%	20.74%