Aerodrome Group (ARDM) AI Stock Analysis

• Market Cap: 57.28M
• Dividend Yield: N/A
• Average Volume (3M): 346.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• 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: 43 Neutral
• Price Target: 77.00 ▲(166.44% Upside)

The score is primarily constrained by weak financial performance, including persistent losses and negative operating/free cash flow. Technicals are supportive due to strong trend signals, but extremely overbought momentum indicators add pullback risk. Valuation remains challenged because the company is unprofitable and provides no dividend yield.

Positive Factors

Diversified revenue streams

Aerodrome's multi-channel model (components, MRO, training, government contracts) reduces single-market exposure and supports more stable top-line opportunities across commercial and defense sectors. Diversification helps revenue resilience over 2-6 months amid cyclical demand shifts.

Recurring MRO service income

MRO generates recurring, contract-driven revenue tied to fleet maintenance cycles and regulatory requirements. This service orientation creates predictable demand, higher customer stickiness, and potential long-duration contracts that support sustainable cash inflows beyond short-term market cycles.

Manageable reported leverage

A moderate debt-to-equity profile implies the company can finance operations or capex without excessive interest burden, preserving financial flexibility. Manageable leverage supports refinancing and investment options over months and reduces bankruptcy risk relative to highly leveraged peers.

Negative Factors

Declining revenues and persistent losses

Sustained revenue decline and operating losses indicate ongoing structural issues with product demand, pricing, or cost structure. Persistent negative margins erode equity and limit reinvestment capacity, making profitable scale and sustained recovery materially harder over the medium term.

Negative operating and free cash flow

Chronic negative operating and free cash flows undermine the firm's ability to fund operations and growth internally, increasing reliance on external financing. This structural cash shortfall raises refinancing and liquidity risk, pressuring capital allocation and strategic investment plans.

Declining equity ratio & negative ROE

A falling equity ratio and negative ROE reflect shrinking shareholder capital and inability to generate returns on equity. Over months, this reduces balance-sheet resilience, limits borrowing capacity, and may deter strategic partners or customers concerned about long-term viability.

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

Aerodrome Group faces substantial financial difficulties, with declining revenues, persistent losses, and negative cash flows. While the balance sheet shows manageable leverage, the overall financial health is concerning due to ongoing operational inefficiencies and cash flow constraints.

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: Negative
• RSI: Negative
• STOCH: Negative

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 34.87, below the 50-day MA of 32.03, and below the 200-day MA of 36.40, indicating a bullish trend. The MACD of 8.02 indicates Negative momentum. The RSI at 93.51 is Negative, neither overbought nor oversold. The STOCH value of 92.84 is Negative, 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%
G107	52 Neutral	35.09M	-39.98	―	―	26.93%	71.40%
ARDM	43 Neutral	57.28M	-3.14	―	―	-49.33%	-447.21%