Aerodrome Group (ARDM) AI Stock Analysis

• Market Cap: ₪61.19M
• Dividend Yield: N/A
• Average Volume (3M): 346.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: -49.33%
• EPS Growth: -447.21%
• Country: IL
• Employees: 93
• Sector: Services
• Sector Strength: N/A
• Industry: Education & Training Services
• EPS (TTM): -6.90
• Shares Outstanding: 95,461,580
• 10 Day Avg. Volume: 335,085
• 30 Day Avg. Volume: 346,980
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 3.70
• P/FCF Ratio: -5.28
• 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: 52 Neutral
• Price Target: 65.00 ▲(124.91% Upside)

The score is held back primarily by weak financial performance, marked by ongoing losses and negative operating/free cash flow. Strong technical momentum (price above key moving averages with positive MACD) provides meaningful support, while valuation remains mixed due to a negative P/E and no dividend yield.

Positive Factors

Diversified aerospace business model

Aerodrome's multi‑segment model (components, MRO, UAS, training) spreads revenue sources across commercial and defense end markets. Durable diversification reduces single‑market cyclicality, supports recurring service income (MRO/training) and stabilizes cash flow over a 2–6 month horizon.

Government contracts and partnerships

Existing government contracts and industry partnerships create a more predictable backlog and higher entry barriers for competitors. These structural relationships tend to support longer contract durations, steady order flow, and credibility in defense and large commercial procurement cycles.

Balance sheet shows manageable leverage

A moderate debt profile reduces immediate refinancing pressure and preserves financial flexibility. Manageable leverage supports the ability to fund working capital and select investments without forcing rapid capital raises, helping execution through near‑term operational turnarounds.

Negative Factors

Sharp revenue decline

Nearly 50% revenue decline indicates significant loss of demand or contracts, eroding scale and fixed‑cost absorption. This structural top‑line contraction impairs margin recovery, weakens pricing leverage, and makes achieving sustainable profitability over the medium term more challenging.

Persistent operational losses

Ongoing negative EBIT/EBITDA and net losses show core operations are not yet profitable. Persistent operating deficits limit reinvestment capacity, increase reliance on external funding, and raise execution risk for strategic initiatives needed to restore durable profitability.

Negative operating and free cash flow

Sustained negative operating and free cash flow creates structural liquidity pressure, forcing dependence on financing or asset sales. Cash generation weakness constrains capex, MRO capacity investments, and the ability to honor long‑term contracts, increasing financial and operational vulnerability.

Aerodrome Group Business Overview & Revenue Model

Company Description

Aerodrome Group Ltd operates as a drone-based service provider and technology carrier. It serves oil and gas, renewable energy, construction and homeland security industries. Aerodrome Group Ltd is headquartered in Petah Tikva, Israel.

How the Company Makes Money

Aerodrome Group generates revenue through multiple channels. Its primary revenue streams include the sale of aerospace components and systems, which cater to commercial and military clients. The MRO services provide a significant income source as airlines and defense organizations seek to maintain their fleets effectively. Additionally, ARDM earns revenue from training programs and educational services, targeting both individuals and organizations in the aviation sector. Strategic partnerships with key players in the aerospace industry, along with government contracts in defense, further enhance its earnings potential.

Aerodrome Group Financial Statement Overview

Summary

Overall fundamentals are weak: the income statement shows declining revenue and persistent losses (negative EBIT/EBITDA margins), and cash flow is notably strained with negative operating and free cash flows. The balance sheet leverage appears manageable, but declining equity strength and negative ROE add sustainability risk.

Income Statement

The income statement reveals significant challenges with declining revenues and negative profitability. The gross profit margin has decreased over the years, and the company has consistently reported negative net income, indicating ongoing operational inefficiencies. The EBIT and EBITDA margins are also negative, reflecting substantial operating losses.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio has declined, indicating reduced financial stability. The return on equity is negative due to persistent net losses, which is a concern for long-term sustainability.

Cash Flow

The cash flow analysis highlights significant cash flow challenges, with negative operating and free cash flows. The company struggles to generate cash from operations, and the free cash flow to net income ratio is unfavorable, indicating cash flow issues that could impact future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.94M	14.45M	33.87M	24.47M	18.75M	14.00M
Gross Profit	-329.00K	990.00K	14.10M	8.26M	6.97M	6.07M
EBITDA	-24.57M	-18.52M	2.99M	-7.72M	-6.20M	-9.36M
Net Income	-30.35M	-22.80M	-545.00K	-10.90M	-8.97M	-10.13M
Balance Sheet
Total Assets	32.76M	39.09M	59.51M	62.95M	74.54M	14.33M
Cash, Cash Equivalents and Short-Term Investments	1.15M	2.52M	1.87M	14.77M	24.00M	8.88M
Total Debt	5.07M	6.04M	8.33M	10.74M	11.57M	1.18M
Total Liabilities	11.09M	10.34M	17.23M	19.56M	21.26M	5.12M
Stockholders Equity	21.68M	28.75M	42.28M	43.39M	53.28M	9.21M
Cash Flow
Free Cash Flow	-7.97M	-10.12M	-1.85M	-7.59M	-6.53M	205.00K
Operating Cash Flow	-7.91M	-9.75M	464.00K	-5.41M	-4.66M	698.00K
Investing Cash Flow	-61.00K	3.78M	-498.00K	-11.99M	-19.77M	-988.00K
Financing Cash Flow	5.09M	6.62M	-2.73M	-1.97M	39.55M	8.58M

Aerodrome Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ARDM, the sentiment is Positive. The current price of 28.9 is below the 20-day moving average (MA) of 69.07, below the 50-day MA of 44.56, and below the 200-day MA of 38.70, indicating a bullish trend. The MACD of 7.94 indicates Positive momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 44.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ARDM.

Aerodrome Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ARDM	52 Neutral	₪61.19M	-2.91	―	―	-49.33%	-447.21%
G107	40 Underperform	₪28.08M	-31.81	―	―	26.93%	71.40%